The government will introduce a first home saver account, which will resemble a superannuation account. First home buyers will receive concessional tax treatment on contributions by being able to salary sacrifice, and the earnings will also be taxed at a concessional rate.

The government is also expected to use incentives to encourage retirees and those close to retiring to downsize from the family home, to increase the supply of housing.

People who downsize will be able to use the proceeds to bolster their retirement, by being offered exemptions from the annual $100,000 cap on on-concessional superannuation contributions and the $1.6 million cap on retirement accounts.

Tamworth LJ Hooker principal Richie Thornton many baby boomers were nearing retirement and thinking about the next stage of their lives.

“The majority of baby boomers have an average of two kids and a lot are living with four plus bedrooms, so that’s a lot of space,” Mr Thornton said.

“Many want to take advantage of retirement and travel without being restricted by worrying about a big house and big yard.”

Tamworth Burke and Smyth real estate agent Jason Wherritt said while Tamworth was still quite affordable compared to other markets, the savings account “certainly wouldn’t hurt”.

However, he’d prefer to see the government provide stamp duty assistance for first homeowners, which he believes would make an instance change to the housing market.

At the moment, first home buyers are exempt from stamp duty on new properties valued up to $550,000, with concessions on new homes valued between $550,000 to $650,000.

Mr Wherritt would like to see something similar for first home buyers, regardless of how old the property is.

“For example, if a first home buyer is spending $300,000 on a home, they’re looking at the best part of $9000 in stamp duty,” Mr Wherritt said.

“That’s a fair chunk of money, especially considering they’ve still got to save enough for the bank to get the financial deposit, and in most cases taking on mortgage insurance.

“So to save for all that in addition to stamp duty can be quite difficult.”

Mr Wherritt said because the first home owners account relies on savings, it would have a delayed affect and wouldn’t create a market change for “quite some time”.

“Stamp due exemptions would create change straight away, with people sitting on the edge suddenly able to buy instead of waiting six to 12 months to save the extra cash,” Mr Wherritt said.

A “ghost house tax” will be imposed on foreign investors who leave their properties vacant.

The government has ruled out making any changes to negative gearing or capital gains tax concessions.