On Tuesday evening Federal Treasurer Jim Chalmers will hand down the government’s 2023 Federal Budget.
Like the October 2022 Budget, next week’s Budget will be set against a backdrop of high inflation and ongoing cost of living pressures, resulting in the Treasurer and government continuing to walking a fine line when it comes to balancing household spending priorities.
In an address earlier this week following the Reserve Bank’s latest interest rate rise, Chalmers stated that the priority of the Budget would be to deliver cost-of-living relief that doesn’t add to inflation.
“It will be a responsible Budget, it will have two main tasks; to see people through a difficult period and to set this country up for the future. We know and this interest rate decision today is a reminder, of the complex combination of economic pressures that are being felt right around the country.
“The Budget will seek to alleviate some of that pressure, at the same time as it positions this country to take advantage of the remarkable opportunities that lay ahead.”
While the budget will address energy bills, superannuation, job seeker and taxation, here’s the details on what will be delivered with housing.
Housing
With the cost and availability of housing one of the larger issues currently facing the government, Tuesday’s Budget is expected to include at least some measures on the housing front. One measure that the government has already set forth is an expansion of the various Home Guarantee Scheme initiatives.
From July 1 this year, siblings, family members and even friends will be able to make joint applications under the First Home Guarantee and the Regional First Home Buyer Guarantee schemes in order to purchase a home. The schemes will also open up to home buyers who may have purchased in the past, but haven’t owned a property for at least ten years.
Eligibility requirements for the Family Home Guarantee will also be expanded to allow single legal guardians of children (e.g. aunts, uncles and grandparents) to make use of the scheme.
“Giving entry-level buyers more options to pool resources to get into their own homes as they contend with cost-of-living challenges has always made sense to REIA and has been a change to the HGS we’ve long advocated for,” says president of the Real Estate Institute of Australia, Hayden Groves.
The Budget will also detail new incentives for investors in relation to build-to-rent projects – a move the government says will aim to help to increase the supply of rental housing.
For more details on what we already know ahead of Tuesdays budget announcement, please click here.
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