You may have heard the Federal Government last night handed down its 2023/24 Federal Budget. Federal Treasurer Jim Chalmers’ Budget included a number of measures aimed at easing the cost-of-living pressures and improving housing affordability.
The challenge the Treasurer faced was to ease pressure many Australians are facing in covering increasing costs without adding to the rising inflation, which was at 7% in the March quarter.
We wanted to highlight the key points from the Budget that may impact you from 1 July.
First-home buyers
The Home Guarantee Scheme, where the Government guarantees the loans of eligible first-home buyers with a deposit under 20%, has been expanded. It will expand its criteria to enable more people to qualify including permanent residents, non-couple joint applications, previous home owners and more single guardians.
Your Loan Market broker can help determine if you are eligible and help you find the right loan.
Home owners
While electricity costs are increasing, the Government is encouraging homeowners to make their homes greener. It is offering 110,000 low-cost loans through private lenders to people looking to make their home more energy efficient. This could include solar panels, double-glazing windows and more.
Your Loan Market broker can help determine if you are eligible and find the right loan for you.
Renters
Increased international migration and a decrease in investors has led to a shortage in properties to rent. In a bid to increase supply, the Government is changing the way it taxes build-to-rent developments. These developments usually have corporate ownership and are much more common overseas. The change is expected to add 150,000 rental apartments over the next decade.
Commonwealth rent assistance is increasing for people on low incomes. Over one million people will receive a 15% increase in their fortnightly payment (up to $31). There will also be a boost to affordable and social housing through the National Housing Finance and Investment Corporation (NHFIC).
Cost of living relief
Mr Chalmers said more than 5 million households will receive up to $500 deduction from the power bills in the next financial year. This is applied directly, resulting in you receiving the already lowered bill.
Families that use childcare may also receive a boost to subsidies. Families earning less than $80,000 per year may receive up to a 90% subsidy, with the rate progressively falling for families with an income above this.
People on Jobseeker will receive an increase of $40 per fortnight, and people aged between 55-59 will receive an additional $92.10. Austudy and Youth Allowance will also increase $40 per fortnight. Single parents receiving the single parenting payment may be eligible to receive support for longer with the Government increasing the age of the child from eight to 14.
If you have a question, get in touch with your local Loan Market broker.
