The Federal Budget was announced at 7.30pm on Tuesday 10 May 2011. The Federal Budget contains both positive and negative implications for the housing market. These are:
Positives:
- In the medium (2011-2013) term, demand for housing is expected to be given a boost by lowering unemployment, growth in household incomes and population growth.
- That the much-speculated changes to negative gearing arrangements REIA lobbied against on behalf of the profession have been rejected.
- Infrastructure funding for regional Australia.
- Moderate assistance to small business through write-offs for asset costs under $5000 and immediate deductions of $5000 for new vehicles.
Negatives:
- No measures to assist first home buyers. They are an endangered species, currently representing approximately 15 per cent of the market, compared to 30 per cent in October 2009.
- The Budget will do little to stave off expected increases in interest rates.
- There will be a delay in the delivery of the National Rental Affordability Scheme (NRAS).
To download the REIA's Federal Budget Overview, click here.
To download the REIA's media release, click here.
For further information or interview opportunities, please contact:
- REIA CEO, Amanda Lynch on 0419 123 862
- REIA Manager Communications, Rhiannon McClelland on 0421 422 919
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