Daily Buzz: Friday, 14 June
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PropertyBuzz, your daily dose of property news.
Australia’s median house price trends upwards; the ATO cautions against tax return mistakes; and Victorian house building premiums rise
Welcome to Property Buzz! I’m Sebastian Holloman. Today is Friday, 14 June.
Australia’s median house price has risen to $1.026 million, marking a 7.6 per cent increase according to the Real Estate Institute of Australia (REIA).
Median prices increased in Sydney, Melbourne, Brisbane, Adelaide, Perth, and Darwin from March 2023 to March 2024, with Perth seeing the highest increase of 3.8 per cent.
Sydney has the highest median house price at just over $1.6 million, nearly 60 per cent higher than the national median, while Darwin has the lowest at $561,500, 45 per cent lower than the national median.
Median rent prices have also increased, with a 2.8 per cent increase for houses and a 6.9 per cent increase for other dwellings, with the highest increases seen in Hobart and Darwin.
With the financial year rapidly approaching, the Australian Taxation Office (ATO) has warned rental property owners to check their tax returns for common errors.
Misunderstandings most often arise around when and how expenses can be claimed, with errors made even with 86 per cent of rental property owners using a registered tax agent.
ATO Assistant Commissioner Rob Thomson also clarified that rental property owners can only claim deductions for costs incurred in producing income and that expenses such as home improvements and capital works must be claimed over time.
The ATO also warned against “double dipping” on rental property expenses and incorrect claims for interest deductions, stressing the importance of keeping detailed records to support claims and deductions.
And in Victoria, Domestic Building Insurance premiums will increase by 65 per cent starting next month due to recent construction insolvencies.
The Housing Industry Association warns that this premium hike will further undermine affordability for Victorian home builders and their clients.
Premiums for a new single dwelling valued at $300,000 will rise to more than $4,000, while those for a $500,000 home will increase to more than $6,000.
The HIA has hit out at the lack of improvements in insurance benefits, with building material and labour costs also rising.
That’s Property Buzz for today.See you again tomorrow, 15 June, for your daily dose of Property Buzz.
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