A Budget for Everyone
The focus on real estate in last night’s 2018-19 Federal Budgets was minor compared to previous years. We’ve gone through the detail to highlight the key measures and potential impacts to our real estate markets.
Personal tax cuts will benefit mortgage holders and tenants with the costs of living, a suite of infrastructure commitments will ease congestion in suburban areas and make regional travel easier, and developers have been encouraged to activate developments by denying deductions for expenses associated with holding vacant land.
Key budget measures
Budget deficit of $14.5bn expected in 2018/19, returning to a surplus of $2.2bn in 2019/20
Personal tax cuts for low and middle-income earners with potential savings of $530 per year
$25bn in road and rail infrastructure announcements – part of the long-term national infrastructure program - aiding commuter and freight transport
Additional care packages to allow elderly people to stay at home longer – a potential challenge for housing supply by taking under-used family homes out of the market
$4.8m over four years for the ABS to better analyse affordable housing and planning