Urban Development Institute of Australia
Western Australia Division Incorporated
Members Login

Budget brings welcome changes 16/05/2016

“Super Tuesday” last week provided plenty to discuss around the dinner table as the Reserve Bank of Australia reduced the official cash rate to an historic low and the Federal Government handed down its final Budget before an imminent election.

“Super Tuesday” last week provided plenty to discuss around the dinner table as the Reserve Bank of Australia reduced the official cash rate to an historic low and the Federal Government handed down its final Budget before an imminent election.

The cut in rates was certainly a welcome surprise for the Perth property market as it is likely to provide some stimulus to homebuyers as we head into the winter months.

The RBA noted that the housing market also has started to cool in the Eastern States as supervisory measures are strengthening lending standards and “price pressures have abated”.

Along with the cut in rates the Budget, while conservative in nature, included elements that are aimed to provide further stimulus to the Australian economy.

We are currently experiencing a period of relative uncertainty as global conditions, in particular the transitioning Chinese economy and low inflation, may affect future growth.

In terms of dwelling investment, the Budget predictions are for 2 per cent growth in 2016-17 followed by a fall in in 2017-18 down to one per cent.

Due to these factors, it was a relief to see that negative gearing and capital gains tax regimes remain unchanged.

The UDIA has been advocating on a national level about these issues and I am keen to expand on why these government decisions are so critical in my column next week.

The other key elements of the Budget that are of particular interest to the property market are around shaping our future cities and providing for infrastructure.

An additional $4.6 million has been allocated in 2016-17 towards the Cities Taskforce as well as $33 billion over the forward estimates for infrastructure funding, including $1.2 billion for the Perth Freight Link and an additional $490 million towards construction of the Forrestfield Airport Link.

Investment in the Cities Taskforce is reflective of the Turnbull Government’s renewed interest in the future of Australian cities, particularly in regard to sustainability and traffic congestion.

Given that the majority of our population live in our major cities, this is an important acknowledgement of how issues such as congestion, affordability and sustainability need to be addressed now for cities to remain liveable places into the future.

On a more general level, welcome measures have been taken in this Budget to help support growth and confidence in the Australian economy, including modest tax cuts for middle-income earners as well as small businesses.

Leave a comment

Your email address will not be published.

Comments are moderated by an administrator before being published.

Comments

To leave a comment, use the above form. Comments are moderated by an administrator before being published. Your email address will not be published.

Return to archive

Related articles

Featured articles

Categories

Proudly supported by

  • Strategen
  • Rawlinsons
  • LD Total
  • Mirvac
  • Landgate
  • Landcorp
  • Stockland
  • QWest Paterson
  • Pindan
  • The West Australian

Subscribe

UDIA WA’s email newsletter provides you with recent news and events on the urban development industry. You are able to unsubscribe at any time.