Study Shows Homeowners Benefit More Than Renters | FHOC
A newly released housing policy study shows that homeowners reap a great deal of benefits which renters do not have access to.
(firmenpresse) - Perth, WA – A newly released policy study by the Grattan Institute looked at the benefits the Australian government doles out to Australians in different living situations and found that homeowners were some of the best off.
“Governments provide benefits to homeowners worth $36 billion a year, or $6,100 on average for each homeowner household.”
The study found that renters do not receive much support from the government even though they consist of nearly one in four households. So what exactly are the benefits that homeowners in Australia are entitled to receive that renters miss out on?
Land Tax Exemption
Land Tax is an annual tax levied on land that is not the principal place of residence. While land tax will affect property investors, homeowners benefit from land tax exemption.
Capital Gains Exemption
Capital gains tax is tax levied on income from selling an asset that has grown in value. In the case of property, the main place of residence is exempt from this tax. According to the Australian Tax Office (ATO), for a property to be the main place of residence a number of factors will be considered:
- The length of time the owners live there
- Whether the immediate family lives there
- The address to which mail is delivered
- Whether the property matches the address on the electoral roll
- Whether personal belongings are stored at the property
- Connection of services, such as electricity, water, gas, etc.
- An intention to occupy the dwelling
With the capital gains tax exemption, Australians reap the benefit of an asset that not only grows in value over time and provides their family shelter but also is exempt from capital gains tax when the time comes to sell the home.
Age Pension
Older Australians who qualify are able to receive income support in the form of the Age Pension and qualify for various concessions. Eligibility for the Age Pension depends on a variety factors such as age, but the primary factor is income and assets. For homeowners, the principal residence is exempt from the assets test, allowing older Australians to receive full pension benefits without their home counting against them.
Grants and Concessions
Eligible West Australians are able to qualify for the First Home Owners Grant (FHOG), which is set at $10,000 for those who build their first home. Those who build their first home are also entitled to stamp duty exemption on land up to $300,000 in value.
Residence is the largest asset for Australian homeowners and compared to other assets it enjoys many financial benefits without many of the penalties associated with other assets such as shares. For Australians mulling the decision whether to keep on renting or to buy a new home for the future, the decision is clear.
About First Home Owners Centre
FHOC is the First Home Owners division of HIA award winner Aveling Homes, one of Western Australia’s most quality focused building companies. What this means for you is that above all else, quality and affordability is what you will experience when you choose FHOC.
Visit the FHOC website at http://www.fhoc.com.au for more details about our services and available financing options for first time home buyers.
First Home Owners Centre Contact Information:
24/7 Sales Enquiry line: (08) 6144 1088
Email: sales(at)fhoc.com.au
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Datum: 16.11.2013 - 10:54 Uhr
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