The Treasurer handed down the Federal Budget for 2022-23 yesterday with a focus on economic strength and recovery, jobs and cost of living pressures.
Here’s everything you need to know about the Budget overall, and what is most relevant to the strata and property sectors.
The Big Picture – Australia’s economy in 2022-23
The government’s key messages included:
Australia’s economic recovery is leading the world
The unemployment rate, at 3.75 per cent is the lowest rate in close to 50 years
Wages are expected to grow in the next 12 months
The deficit was predicted to be $106.6bn, but is now predicted to be $79.8bn instead.
Net overseas migration is projected to be 180,000 next year
CPI forecasts, although currently experiencing pressure, are only projected at 3 per cent.
The Headline Makers – The Budget’s Big Announcements
Cost of living
Cutting the government fuel excise by 22c/litre for 6 months to ease pressures on fuel prices.
An increase of $420 for low and middle-income earners as an addition to the existing offset.
A one-off cost of living payment of $250 to 6 million eligible pensioners, welfare recipients, veterans and eligible concession card holders.
Housing and infrastructure
Extending the Home Guarantee Scheme places where a 5 per cent deposit can secure a non-LMI loan to up to 50,000 places per year. Detailed information here.
$37.9 billion for regional Australia to be delivered across the country into investments and projects such as agriculture, low emissions, manufacturing and renewable energy.
Infrastructure spending on the Melbourne Intermodal Terminal Package ($3.1bn), Brisbane to Sunshine Coast Rail Extension ($1.6bn), Brisbane to Gold Coast faster rail ($1.1bn), Sydney to Newcastle Faster Rail ($1bn).
Jobs and skills
Increased spending on jobs, training and apprenticeships with $2.8 billion to support Australian apprenticeships and $3.7 billion for a new skills agreement.
Small businesses will have access to a new 20 per cent bonus deduction for eligible training courses for upskilling employees.
Increased defence force spending, including $9.9 billion over 10 years to enhance Australia’s offensive and defensive cyber and intelligence capabilities.
Key Takeaways for the strata and property sector
Housing demand - Continued housing stimulus through the Home Guarantee Scheme, First Home Super Saver Scheme and HomeBuilder scheme will continue to put some upward pressure on demand in the housing sector, however as for the last two years, many experts tip that this will not improve housing affordability overall.
Infrastructure spending - A pipeline of spending on infrastructure projects throughout existing city deals, means infrastructure deals and new money for projects such as faster rail has the potential to increase amenities and keep job growth strong in infrastructure spending areas.
Small business upskilling and talent - Strata and the strata and trades services companies who interact heavily with strata, depending on eligibility, may have increased access to funding to upskill their workforce and depending on industry, access a deeper talent pool to pull from if new apprenticeships and training places are taken up.
SCA submitted a Pre-Budget Submission to the Federal Government in January ahead of the Budget, which included priorities in sustainability, building quality and insurance affordability and availability. By issue area:
Housing affordability and housing stimulus are a focus for the federal government, however the increased spending on jobs and skilling present SCA with an opportunity to work with the property and trades sectors to improve building and construction quality through better training and certification.
Despite significant attention on sustainability (including renewables, water, waste, EV charging) that will continue to the election, there was very little in terms of new spending on renewables and low emissions in the Budget outside of programs and funding already on offer, with spending focused on technology development and rollout in regional Australia. SCA will continue to advocate for sustainability investment through to the election.
SCA has continued work to improve insurance affordability and availability throughout the budget cycle with heavy involvement in the design of the Reinsurance Pool and North Queensland Strata Title Resilience Pilot Program and has successfully delivered messaging on stamp duty and tax relief.
Looking Ahead To The Election SCA will continue to advocate as part of its election campaign by meeting with members of government and opposition, stakeholders, undertaking media activities and member communication on these three themes as part of its SCA 2022 Federal Election Priorities between now and the election (which must be held before the end of May). Our three priorities are:
Creating Smarter, Greener and More Efficient Strata Communities
Making Insurance Affordable and Accessible for Strata
Eradicating the High Prevalence of Building Defects in Strata Complexes
Read our full SCA 2022 Federal Election Priorities document.
See some of the media attention gained through our advocacy: