Treasurer Jim Chalmers delivered the 2024-25 Federal Budget last night (Tuesday, 14th May, 2024) with a focus on cost of living pressures, the care economy and advancing equality.
Treasurer Chalmers said in his speech that this was a Budget for “the here-and-now” and one that would help “people under pressure today”.
While this year’s Budget brings with it welcome tax cuts for all taxpayers – what, if anything, will affect the country’s real estate market and assist those either already in their own homes, looking to buy or currently renting?
In this update we break down what’s in this year’s Budget for Australians and property.
Help to build, rent and buy
According to the official treasury website, this Budget invests $6.2 billion in specific housing initiatives, taking the Government’s total new investment since 2022 to $32 billion.
This investment expands on initiatives currently being delivered through the National Housing Accord, Housing Australia Future Fund and Social Housing Accelerator.
Supporting more homes
The Government is making available a further $1 billion to states and territories to deliver new housing – including for connecting essential services such as water, power, sewerage and roads.
This investment expands on the $500 million committed through the Housing Support Program to support enabling infrastructure to unlock more homes.
More help for renters
According to Budget papers, a $1.9 billion investment will increase the maximum rates of Commonwealth Rent Assistance by a further 10 per cent to further alleviate rental stress.
This builds on the 15 per cent increase made in September 2023, taking the increase to Commonwealth Rent Assistance maximum rates to over 40 per cent since May 2022 including indexation.
According to the treasury, nearly 1 million households will be receiving the maximum rate of Commonwealth Rent Assstance, amounting to around one quarter of all renters.
More housing for students
To deliver more accommodation for students and to reduce pressure on the private rental market, the Government will work with the higher education sector to develop regulations requiring universities to increase their supply of student accommodation.
Tax cuts for every Australian taxpayer
The Government is delivering tax cuts for all 13.6 million Australian taxpayers from 1 July 2024 to ease cost‑of‑living pressures for middle Australia, return bracket creep, support women and boost labour supply.
From 1 July this year, the Government will:
- reduce the 19 per cent tax rate to 16 per cent
- reduce the 32.5 per cent tax rate to 30 per cent
- increase the income threshold above which the 37 per cent tax rate applies from $120,000 to $135,000
- increase the income threshold above which the 45 per cent tax rate applies from $180,000 to $190,000.
New power bill relief
The Government is providing $3.5 billion in energy bill relief for all Australian households and around one million small businesses.
From 1 July 2024, more than 10 million households will receive a total rebate of $300 and eligible small businesses will receive $325 on their electricity bills throughout the year.
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