00:00Speaker, Australia's long-standing housing shortage is making homes unaffordable.
00:07This challenge hits young workers and families hard, and we're addressing it from every
00:11responsible angle.
00:13The reforms in this budget will lift our total investment in housing to a record $47 billion.
00:20We're levelling the playing field for first homebuyers with 5 per cent deposits and tax
00:25reform to help more young Australians into their own home.
00:29We'll invest another $2 billion in the power, roads and drains that we need for new housing
00:34developments, which will help around 65,000 new homes over the next decade.
00:39We're working with the states to cut red tape and planning delays, which could unlock tens
00:44of thousands more.
00:45We're extending our ban on foreign investors buying existing homes to take pressure off
00:50the market.
00:52And helping to fix the youth housing penalty to secure homes for 4,000 young people
00:57people at risk of homelessness.
01:00We're delivering a fairer tax system for workers, first-time buyers and young people.
01:06This will help rebalance a system which is more generous to assets than it is to labour.
01:11And help rebalance a system where house prices have decoupled from incomes.
01:16Since 1999, house prices have risen over 400 per cent, more than twice as fast as average incomes.
01:25Our tax changes will help about 75,000 Australians achieve the dream of home ownership.
01:31We'll limit negative gearing for residential property to new builds from July next year.
01:36And we're replacing the 50 per cent capital gains tax discount with inflation adjusted
01:42indexation to restore the taxation of real gains.
01:47These changes will be prospective and new builds will retain the option to use the 50 per cent
01:52discount.
01:53We'll also introduce a minimum 30 per cent tax rate on capital gains from July next year,
01:59and on discretionary trust from July the year after.
02:02This is about better aligning the taxes paid on these types of income with the taxes paid
02:09on wages.
02:10These changes will level the playing field for workers and first-home buyers and support investment
02:15in productive assets including new housing supply.
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