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Brokers have drawn up a wishlist for Tony Abbott’s first Budget that includes introducing a first home owner’s grant and reforming the valuation system.
Smartline Melbourne broker Jeremy Kruse said a first home owner’s grant would help his clients, some of whom have been pre-approved for six months.
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“A $10,000 grant could potentially make a difference, because it would effectively cover the mortgage insurance in a lot of cases and enable all their savings to be directed towards the purchase,” he told The Adviser.
Slavyanka Professional Mortgage Brokers principal Michael Teterin said his biggest concern was the unpredictable nature of the valuation system.
The Sydney firm’s average loan is above $1 million, which allows plenty of room for differences in valuations between lenders, he said.
Mr Teterin called on the federal government to legislate to make the valuation system more consistent and transparent.
Geelong Financial Group’s managing director, Simon Sutterby, said his firm would find it much easier to do business if the government simplified the tax system.
“I think the taxation system is very confusing and makes it tough for small business when you’ve got payroll taxes and super contributions and WorkCover and tax brackets and things you can and can’t claim,” he told The Adviser.
MFAA chief executive Phil Naylor said the government needed to provide certainty so businesses and consumers could plan for the future.
Mr Naylor added that this would also help keep interest rates under control.
The real estate association Certified Practising Real Estate Agent said the property industry would soon be “taxed to death” if the government did not cut property taxes.
“This is no exaggeration, because currently the number of first home buyers in the Australian housing market has fallen dramatically, mainly because of rising taxes on property,” chairman Geoff Baldwin said.
“First home buyers are the lifeblood of the housing sector and they now account for less than 14 per cent of all home buyers.
“High property taxes are now beginning to have an impact on second and third home sectors. More homeowners are simply deciding not to upgrade to better homes because of the high level of property taxes.”
