The Federal Government has delivered a range of measures aimed at the housing market in its 2023-24 Budget. 

Renters 

Rental markets across the country are experiencing low vacancy rates and rising rents. The Budget forecasts rents will increase further in 2023-24. More than 1.1 million households receiving the maximum Commonwealth Rent Assistance will receive a 15 per cent increase to their payment, providing an extra $31 per fortnight to help cover rising rents. 

Home buyers and home owners 

Interest rates are a major concern for mortgage holders and prospective home buyers. Treasurer Jim Chalmers said the budget was non-inflationary and anticipated inflation would fall to 3.25 per cent in the next year and return to the Reserve Bank of Australia’s (RBA) target band or 2 – 3 per cent by 2024-25. This would reduce pressure on the RBA to lift interest rates further. 

Eligibility for the Home Guarantee Scheme has been expanded, giving more people the opportunity to buy a home with a low deposit. 

Housing supply 

Should the Housing Australia Future Fund be enacted, the National Housing Finance and Investment Corporation (NHFIC) has a mandate to take ‘reasonable steps’ to allocate at least 1,200 homes in each state and territory’ within five years. 

The Budget also included incentives to encourage build-to-rent projects. The Government will increase the tax rate for the annual capital works tax deduction (depreciation) to 4 per cent. It will also reduce the final withholding tax rate from 30 per cent to 15 per cent, on eligible fund payments from managed investment trust investments from 1 July 2024.   

Cost of living 

Energy costs were a focus of the Budget’s cost-of-living measures and eligible households will receive up to $500 as a credit on their power bills in the next financial year.

With the aim of reducing household energy costs further, the Budget also included a $1 billion investment to help provide low-cost loans for double glazing, solar panels and other home improvements to make it easier and cheaper to heat and cool homes. 

Further addressing energy efficiency, $36.7 million was allocated to expand and upgrade the Nationwide House Energy Rating Scheme to apply to existing homes. The Government said this investment meant people would be able to seek a home energy rating, so they could make the best choice for their hip pocket when it came to energy upgrades and renting and purchasing property. 

Homelessness 

The Government pledged an additional $67.5 million in homelessness funding to states and territories, to support the provision of services through the National Housing and Homelessness Agreement in 2023-2024.