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As the Australian government gears up to unveil the 2024 Federal Budget on May 14, experts in the housing and mortgage industry weigh in on potential implications for homeowners and the property market.
Alan Hemmings (pictured above left), CEO of Home Loan Experts, is cautiously optimistic about the forthcoming budget. He mentioned that there are indications of additional measures to alleviate the cost of living, but details have not been revealed.
“They will try to balance economic growth and help with inflation,” Hemmings said. “However, they will need to be careful about cost-of-living measures, as any money put into taxpayers' pockets is likely to be spent, which will put upward pressure on inflation.”
Home Loan Experts senior mortgage broker Jonathan Preston (pictured above centre) also offered his view on the government’s priorities, claiming that economic growth is being significantly driven by immigration policies.
He was also critical of the anticipated focus on ‘build-to-rent’ initiatives, questioning their effectiveness and suggesting that “the most impactful action the government could take in the budget to assist homeowners would be to slow immigration dramatically."
On a different note, HLE mortgage broker Steven Chan (pictured above right) highlighted the implications of an anticipated Budget surplus.
“An expected Budget surplus means less money in the economy, so the trade-off is lower growth, but it also keeps inflation low,” Chan said.
He suggested that the Budget might support housing through “commonwealth rent assistance and continuation of the First Home Guarantee Scheme”. Chan also sees tax cuts as a potential strategy to assist homeowners.
The federal government is taking steps to bolster the construction workforce, a move crucial for addressing Australia's ongoing housing crisis.
In the forthcoming budget, nearly $90 million has been allocated to cover the education costs of 20,000 individuals in the construction sector. This initiative includes 15,000 fee-free TAFE and VET places, with an additional 5,000 spots in pre-apprenticeship programs starting from 2025.
“We won't build the 1.2 million homes without an increase in our skilled labour force, without more builders and construction workers,” Treasurer Jim Chalmers said.
His statement comes in the wake of an independent report that cast doubt on the federal government's target of building 1.2 million homes by 2029.
With the vacancy rate in Australia reaching a record low this February, the urgent need for more housing is palpable.
“It will be a major focus of the Budget on Tuesday. We know there's not enough homes, we need to build much more housing ... we have made some quite big investments already and people should expect to see more on Tuesday night,” Chalmers said less than a week before the Budget announcement.
What Budget measures would you like to see to boost housing supply and ease the cost of living crisis? Comment below
