As part of the budget pruning exercise of the Federal Government the First Home Saver Scheme is being abandoned.

Many of the new measures included in the Federal Budget for 2014-15 that will have wide impacts will be covered extensively in the mainstream media. These measures include welfare changes, the reduction in the company tax rate and the Budget Repair Levy.

In addition to these measures there are a number that may not make the headlines, but still stand to have a material impact on the residential building industry.

Due to lower than forecast take-up rates the programme will be discontinued the government will cease making contributions from 1 July 2014 and tax concessions and the income and asset test exemptions for government benefits associated with these accounts will cease from 1 July 2015.

The federal government will also not be proceeding with Round 5 of the National Rental Affordability Scheme. Funding for incentives from earlier rounds that are uncontracted or not used within agreed timeframes will be returned to the Budget. Funding for tenanted NRAS properties is not affected. With thanks to the HIA who researched this material.