Those with a stake in the Australian property market can sleep easy after the official delivery of the 2021 Federal Budget. While the 2021 budget includes a number of measures relevant to property investors, it doesn’t change existing arrangements on negative gearing nor does it touch capital gains tax.

The lack of action on negative gearing, was largely foreseen by property experts, with Right Property Group’s Viktor Kumar commenting that “parties don’t mess around with property and tax pre-election. If they do, they get annihilated at the elections”.

A new ‘Family Home Guarantee’ has been introduced. This will allow up to 10,000 single parents to purchase a home with as little as a 2% deposit over the next four years. The scheme comes into effect from 1 July 2021 and is subject to a similar price cap system as the existing First Home Buyers scheme.

The FHLDS (New Homes) scheme, launched last year, will be expanded for a second year, providing an additional 10,000 places in 2021-22.