What does the 2022-23 budget mean for you?

What does the 2022-23 budget mean for you?

• Posted By Kamal Kanaan

On Tuesday 25th of October, the federal treasurer Jim Chalmers released the recently elected Labour government's first budget in almost a decade. 

The announcement comes with several strategies around affordability, and supply and demand issues in the hope of supporting Australia’s housing industry. 

The Albanese government has a plan to build 1 million new homes across the country over the next 5 years. Every state and territory will have to do their part to meet supply targets, this will include altering land release and potentially re-zoning properties. 

If executed correctly this may give Australia’s housing stock the generational injection the market has been deprived of. 

Although not an immediate impact, if you are in the market to buy, this new budget will help stabilize affordability across the country. It will also help reduce the impact of the Australian rental crisis. (See “The real reason behind the “rental Crisis” article here). 

Right now, the current settings around built-to-rent housing are a barrier to investment, the new budget along with experts' advice including Mr. Ken Morrison (Chief Executive at the Property Council of Australia) around the government needing to do additional “tangible actions” especially around the tax settings for investment will entice more rental stock online. 

However, the new budget will not have an immediate impact on housing and rental affordability. There are still constraints on the housing supply, including a backlog of new builds from supply chain pressures, which means affordability pressures for home buyers and renters are likely to continue.