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Federal Budget Report 2024/2025

Written by Jacinta McDonald | May 16, 2024 3:12:32 AM

 

The Australian Federal Government's 2024-25 Budget represents a significant milestone with a second successive surplus, marking the first time in almost two decades that there have been back-to-back surpluses.

This budget aims to address the pressing needs of households facing cost-of-living pressures and businesses grappling with rising costs. To achieve these objectives, the budget implements the previously announced Stage 3 tax cuts, granting all taxpayers a tax cut starting July 1, 2024. Additionally, it provides energy bill relief for households and businesses, boosts Commonwealth Rent Assistance, extends the instant-asset write-off for small businesses, and offers debt relief for students.

However, what remains to be seen is whether the government has effectively aligned its fiscal policy with monetary policy to prevent fuelling inflation and potentially prompting further rate hikes by the RBA.

A key highlight of this year's budget is the introduction of the government's $11.3 billion "Homes for Australia" plan, aiming to address housing affordability and availability issues across the country. The plan is multifaceted, focusing on several key areas to achieve its goals and is supported by a $90.6 million construction workforce package.

Budget Summary

  • Budget surplus of $9.3b in 2023-24 and deficit of -$28.3b in 2024-25
  • Inflation forecast to fall to 2.75% in 2024-25
  • Net overseas migration of 395,000 in 2023-24 falling to 255,000 in 2025-26
  • Stage 3 tax cuts to benefit all tax payers
  • $300 energy bill relief for all households
  • $22.7 billion Future Made in Australia package
  • $16.5 billion additional infrastructure spending


Real Estate Related Measures

  • $9.3 billion over five years for social housing and homelessness
  • $1 billion for crisis and transitional accommodation for those facing domestic violence
$1 billion for states and territories to build new residential developments sooner
 
To delve deeper into the impact of the 2024-25 Federal Budget on the real estate market, you can read the full report below.