How you can get the 2024-2025 Federal Budget to benefit you
Introduction
The housing and cost of living crises have been well documented over the past year in Australia.
In this year’s Federal Budget, which was released on the 14th of May, a raft of measures designed to boost the Australian – and West Australian – housing supply have been created.
This includes initiatives that support renters as well as housing creation.
In this week’s blog post, we will break down how the 2024/2025 State Budget could work for you.
Body
This year’s budget includes a number of initiatives intended to help Australians buy, build, or rent a house.
The Federal Government is investing $6.2 billion in new housing, and giving an extra $1.9 billion of concessional finance for affordable and social housing.
The overall investment of the Federal Government since 2022 totals $32 billion.
They are also putting $1.9 billion into making the Commonwealth Rent Assistance maximum rates bigger by another ten percent. This is intended to help with rental stress and adds to the fifteen percent increase that was implemented in September last year.
As a consequence, this means that the maximum rates of the Commonwealth Rent Assistance will have increased by more than forty percent, inclusive of indexation, from May 2022.
Close to one million households are at the moment getting the maximum rate, and the changes mean that about a quarter of all those renting will benefit.
The Government is also seeking to build a further amount of homes in a quicker time period, give further help to renters, and create a path for low-income earning Australians to achieve home ownership.
The Federal Government also plans to give each territory and state one billion dollars to create new homes.
This money can go towards things such as connecting critical services like power, roads, water, and sewerage.
In regard to foreign investment, the Federal Government is now letting foreign investors buy Build to Rent developments that are already established with a foreign investment fee that is lower. This is based on the condition that the home still be used as a Build to Rent Development.
Key points
Some key points that are important to take away from this week’s blog post have been highlighted below.
- The Government is investing $6.2 billion in new housing.
- Commonwealth Rent Assistance rates will have increased by more than forty percent.
- Each territory and state will get one billion dollars to put towards housing.
- There is good news for foreign investors with a lower investment fee.
Ultimately, this year’s Federal Budget does take strides to assist those struggling to break into the housing market, or those who are battling to stay afloat in the rental market.
Conclusion
In conclusion, while it is hard to purchase a new home in the current economic climate, the latest Federal Budget has intended to make this difficult process a little easier.
If you or someone you know has any questions concerning this topic, or would like to discuss home loans, please get in touch with the friendly team at AA Finance Solutions.
