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Changes to the Victorian Governments Housing Initiatives

Changes to the Victorian Governments Housing Initiatives

Labor's 2023-24 Federal Budget introduces housing initiatives to tackle challenges faced by renters, first-home buyers and property investors. Cornus explores how these initiatives, such as the Commonwealth Rent Assistance (CRA) increase and changes to the Home Guarantee incentives, benefit investors and purchasers interested in purchasing a Cornus apartment. 

Expanding Eligibility of Recipients for Low-Deposit Home Loan Schemes

The Federal Government has expanded and adjusted the eligibility criteria of the types of  low-deposit home loan schemes it offers.


  1. The First Home Guarantee: Allows eligible first home buyers to access a home loan with a 5% deposit without paying lenders mortgage insurance (LMI). It has an annual allocation of 35,000 places.
  2. The Regional Home Guarantee: Designed for eligible first home buyers in regional Australia, this scheme enables them to access a home loan with a 5% deposit without paying LMI. It has an annual allocation of 10,000 places.
  3. The Family Home Guarantee: This scheme allows eligible single parents to access a home loan with a 2% deposit without paying LMI. It has an annual allocation of 5,000 places.


Each scheme has specific criteria related to the property being purchased, income levels and participating lenders. To find more detailed information, refer to the National Housing Finance and Investment Corporation (NHFIC) website, which is managed by the Government.

The recent Budget outlined an expansion of the eligibility criteria for these home guarantee schemes:

  • The schemes now extend beyond spouses and de facto couples, allowing any two applicants, such as parents and children, siblings or even friends, to apply together.
  • Non-first home buyers who haven't owned a home for at least 10 years may now be eligible for the First Home Guarantee and the Regional Home Guarantee (if they already qualify for the Family Home Guarantee).
  • Single legal guardians of dependents can now qualify for the Family Home Guarantee.
  • Permanent residents are also eligible for the Home Guarantee Schemes.


Increase in Commonwealth Rent Assistance (CRA)

The government has announced a 15% increase to the maximum rate of CRA, benefiting around 1.35 million households in the private rental market. While modest compared to rising rents, the increase, coupled with support measures like JobSeeker payment boosts, provides some relief to low-income renters.


The CRA increase acknowledges renters' challenges, potentially improving rental affordability for tenants in Cornus Apartments. However, it may not fully offset rising rental costs, impacting investment returns.

Impact of the CRA Increase on Investors

The CRA increase could lead to higher rental demand and increased rents. This can benefit investors by contributing to rental income growth and increasing the overall value of their investment. On the flip side, higher rental demand and increased rents may create affordability challenges for tenants, potentially impacting tenant retention rates and vacancy levels.

Build-to-Rent (BTR) Development Incentives

Labor's budget includes tax reform measures aimed at promoting Build-to-Rent (BTR) developments. In an aim to make BTR investments more attractive, the government has reduced the withholding tax rate from 30% to 15%. Additionally, the depreciation rate for BTR properties would increase from 2.5% to 4%, boosting after-tax returns for investors. These measures could potentially lead to the construction of 150,000 apartments over the next 10 years. While BTR is not necessarily affordable housing, it offers a more secure alternative for some households and contributes to increasing rental supply, benefiting the broader rental market.


Labor's 2023-24 Federal Budget introduces several housing initiatives aimed at addressing challenges faced by renters, first-home buyers and property investors. The expansion of eligibility criteria for low-deposit home loan schemes, such as the First Home Guarantee, Regional Home Guarantee, and Family Home Guarantee, opens up opportunities for a wider range of applicants, including non-first home buyers and single legal guardians. This expansion, along with the increase in Commonwealth Rent Assistance (CRA), acknowledges the difficulties faced by renters and provides some relief to low-income households. However, while the CRA increase may improve rental affordability for tenants, it may not fully offset rising rental costs. On the other hand, the incentives for Build-to-Rent (BTR) projects, such as reduced withholding tax rates and increased depreciation rates, aim to attract more corporate and institutional investors, potentially leading to a significant increase in rental apartments over the next decade. It is important to consider the pros and cons of these measures to understand their overall impact on the housing market.


For more comprehensive information about apartments available in Oakleigh, Sandringham and Glen Iris, contact 1800 267 687 or fill in the form below.



*Please refer to the Federal and State Government websites for further information. Terms and Conditions apply to any other promotions that may be contained within this communication. Please enquire within and check with the vendor and agent for further terms and conditions. Only one promotion can be used per purchase and can not be used in conjunction with any other promotions. The information contained herein is given for general information purposes only and it is subject to change. Readers, viewers and consumers are advised to perform their own research and investigations and obtain their own financial, legal and other advice. The information and materials do not form any representation by any vendors or agents of any vendors and may include third-party opinions that do not represent the opinion of any vendor or agent. They do not form part of any contract of sale and they do not constitute legal, financial, real estate or other advice and must not be regarded or relied upon as such. No warranty is given either expressly or implied and the vendors or agents do not assume liability for negligence or otherwise with respect to the contents herein. Any plans are yet to have had their structural and services review so are subject to change prior to completion of construction. All plans, dimensions, areas and particulars herein whether by measurements or visual representation are approximate only, for general information only, and do not constitute any representation by the vendor or its agents or representatives. They do not form part of any contract of sale. Changes will undoubtedly be made during development and dimensions, fittings, finishes and specifications are therefore subject to change. Any furniture, goods and chattels depicted in this document are not included with any sale. Prospective purchasers or lessees are advised to not to rely on the information contained herein and to satisfy themselves as to the accuracy of all information given by making their own inspections, searches, inquiries and advises or as is otherwise necessary. The vendor or its agents or representatives will not be responsible for any error or misdescription which may appear. Further, the vendor or the developer or their agents or representatives do not represent, warrant and/or guarantee that the integrity of this communication has been maintained or that the communication is free of errors, virus, interception or interference. Usage of this or any other websites and materials and any associated website or material is subject to further terms and conditions.

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