First-home buyers will be able to save for a home deposit faster by salary sacrificing into their super fund from July 1, following the Federal Budget.

On top of existing compulsory super contributions, individuals saving to buy will be able to put a total of $30,000 into their super, or $15,000 maximum per year. Couples can put in a total of $60,000.

The Federal Government will make only minor changes to negative gearing. Owners of holiday homes or other investment properties won’t be able to claim tax deductions to visit them.

And plant and equipment depreciation deductions — on items that can be easily removed such as carpets and dishwashers — will be allowed only for the investors who incurred the expense.

The Budget also has a foreign investment levy of $5,000 on future foreign investors who leave their property vacant.

Quote of the Week

“Too much of the housing affordability debate has misdiagnosed the problems, focused on measures that won’t do anything to fix affordability or set out to blame scapegoats for political convenience.” — Ken Morrison, CEO of the Property Council of Australia.