In a bid to engage more young property buyers and stave off the current housing affordability crisis - both the Federal and state governments have introduced a range of measures to assist first home buyers get into the property market. Lets take a quick look...

First Home Super Saver Scheme (Federal) Announced in the 2017 Federal Budget, first home buyers (FHBs) will be offered tax incentives to save for a housing deposit within their superannuation account. The scheme will enable FHBs to make voluntary contributions of up to $15,000 per year and $30,000 in total, to their superannuation account in order to purchase a first home.

Increase first home buyers grant A $20,000 for first home buyers purchasing newly built properties in regional Victoria up to $750,000.

Stamp duty to be scrapped  For first-home buyers in Victoria whose property costs less than $600,000.

Co-ownership pilot scheme As part of a pilot scheme worth $50 million, the Victorian government will purchase up to 400 homes, taking a 25% share in the properties. The idea is that first-home buyers will need a smaller deposit and can enter the market sooner. Eligible applicants will need to earn $95,000 a year for couples or $75,000 for singles.

Re-zoning Both the Federal government and the NSW and Victorian state governments have announced a range of re-zoning initiaitves to create new suburbs within 10kms of capital cities. In Victoria for example, 100,000 properties will be re-zoned creating 17 new suburbs in Melbourne's key growth areas. The fully planned communities are due to go on the market from now until the end of the year and will include new suburbs in the west, north-west and south-east of Melbourne.

The Federal governmet has also comitted to a $1 billion National Housing Infrastructure Facility to “address infrastructure chokepoints that are impeding housing development in critical areas of undersupply”. An example of this will ne the re-zoning of Defence land alonside the Maribrynong River in Melbourne where a whole new suburb catering for 600 new homes will be built.

Housing affordability tax As part of the drive to increase house affordability, there will also be a new tax levied on vacant residential property to target empty properties in Melbourne's inner and middle suburbs.  The Federal government has also announced a similar initiaitve for Foreign Investors to extend Australia-wide. Learn More

Downsizing incentives for retirees Whilst not directly an initiaitve for first home buyers, the removal of tax disincentives to older Australians to downsize their homes will free up housing stock for new buyers, by enabling older Australians to contribute downsizing proceeds into superannuation.

With 80% of Australian retirees owning their own home, this may prove to be a windfall for older Australians. From 1 July 2018, individuals aged 65 and over can contribute up to $300,000 ($600,000 per couple) in proceeds from the sale of a principal residence, held for at least 10 years, into their superannuation.

UPDATE - November 2017: The number of first-home buyers using stamp duty concessions has more than doubled after the state government introduced several savings measures nearly three months ago. More than 2100 Victorians have used first-home buyer incentives since July 1, including 1850 who paid no stamp duty when buying their first property, according to state government figures to be released on Saturday. Read more here.