Associations welcome budget 2024/25

Among the housing measures announced are:

• An increase in the maximum rates of Commonwealth Rent Assistance by a further 10 per cent.
• More access to finance for community housing providers through the Affordable Housing Bond Aggregator ($2.5 billion increase in guarantee).
• $1 billion for crisis and transitional accommodation for vulnerable groups.
• $1 billion to states and territories for infrastructure supporting new homes and social housing.
• A five-year National Agreement on Social Housing and Homelessness ($9.3 billion funding).
• $90.6 million to boost the number of construction workers and provide 20,000 additional Fee-Free TAFE training places.

Other announcements include:

• An extension of the $20,000 instant asset write-off for small businesses for another year.
• More funding to improve payment times to small businesses and to increase eInvoicing adoption.
• Tailored financial and mental wellbeing support for small-business owners.
• Support to help farmers and rural communities reduce emissions and prepare for climate change and drought.
• A $300 rebate for over 10 million households and a $325 rebate for eligible small businesses on electricity bills.
• Allocations to expand the Digital ID scheme, reducing the burden on small businesses in managing personal information.
• The stage 3 tax cuts.
• Changes to annual HECS indexation.
• Paying superannuation on the government’s 20 weeks’ Paid Parental Leave from 1 July 2025.

Welcoming the measures, Peter White AM, managing director of the Finance Brokers Association of Australasia (FBAA), said: “We welcome the package aimed at boosting the supply of social and affordable homes which should over the long term help ease the pressure on home availability and rents.

“However as always the devil is in the detail and the plan has to be properly implemented. We also welcome the continuation of the instant asset write-off for small and medium business.”

The chief executive of the Mortgage & Finance Association of Australia (MFAA), Anja Pannek, also welcomed the housing measures: “Housing supply remain[s] a key issue for Australia and it’s pleasing to see the government continue to remain focused on this in the Budget, addressing construction hurdles, investment in social and affordable housing and schemes designed to help Australians buy their own home.

“We are pleased to see the importance of small business to the Australian economy recognised with $290 million to extend the $20,000 instant asset write-off for 12 months, as well as $10.8 million to support the mental and financial wellbeing of small-business owners.”

Pannek also welcomed the support to expand Digital ID into “a whole-of-economy service”, which she said “is sensible for the long-term protection of mortgage and finance brokers who are required to deal with their clients’ personal ID”.

The MFAA CEO said: “Our members have told us that serviceability is the number one reason their clients have been unable to refinance, or in some cases access a home loan at all. Cost of living relief through this year’s budget, combined with Stage 3 tax cuts and HECS indexation measures will no doubt assist first home buyers and other borrowers who have been challenged with serviceability.”

[Related: What's in the Budget 2024/25?]