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{{propApi.successMessage}} {{region}} Change locationFederal budget: What’s on offer?
Federal budget: What’s on offer?
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Simon Croft
Chief Executive, Industry & Policy
The federal Treasurer and the Opposition leader outlined their respective federal budget plans in March.
For the current federal government, Treasurer Jim Chalmers handed down the ALP’s fourth federal budget. This is a critical juncture for the Albanese government as it heads into the next federal election.
The Treasurer outlined that the federal budget is to be in a deficit of $27.6 billion for 2024-25. The figure will deepen to $42.1 billion in 2025-26 with a forecast that it will remain in a deficit for the next decade.
The budget outlined five priority areas:
- supporting the recovery from ex-Tropical Cyclone Alfred
- cost-of-living support including building more homes
- strengthening Medicare
- investing in education
- making the economy more competitive, dynamic and productive.
It was pleasing to see the Treasurer include boosting housing supply as part of these priorities but the ALP’s plan for housing is unlikely to substantially shift the dial in any meaningful way.
The only real ‘new’ announcements was the expansion of the eligibility criteria for the Help to Buy Scheme and $54 million to boost prefab and modular housing.
From the HIA aspect, the federal budget was a missed opportunity to implement more substantive and long-term reforms rather than these small-target solutions.
Housing and skills announcements
The federal budget outlined the ALP’s $33 billion housing plan. This continues the current policies they have implemented over the past three years, including:
- the National Housing Accord aspirational target of building 1.2 million well-located homes from mid-2024-2029
- the $3 billion New Homes Bonus for states and territories to help meet this target
- the $10 billion Housing Australia Future Fund for 40,000 new social and affordable homes
- the National Planning Reform Blueprint
- a new $10,000 Apprentice incentive across the top five housing trades
- a continuation to the end of this year of the $5000 employer hiring incentive for key housing trade apprenticeships
- expansion of the income thresholds and housing median prices under the Help to Buy shared equity scheme
- providing tax incentives for Build to Rent projects
- continuing placements through the fee-free TAFE program
- establishing a $50 million centre of excellence for modern methods of construction
- new commitment of $54 million of increased funding for states and territories to increase supply of prefab and modular construction and streamline approvals through a new certification scheme for these forms of construction.
It must be recognised that the government’s plans are solid policy measures. Housing is one of its priority areas. However, as our industry knows, the current housing crisis means we need turbo-charged reforms to address long-term structural issues and treating housing as a critical infrastructure comparable to hospitals, roads, care clinics, etc.
Opposition budget reply
Following the budget, Opposition leader Peter Dutton and Shadow Treasurer Angus Taylor handed down their reply.
The Coalition announced that if elected, its housing plan was outlined among other key policies. This includes:
- investing $5 billion in infrastructure to create 500,000 new greenfield homes
- placing a pause on further red-tape measures including a 10-year pause on further stringency increases into the NCC
- providing $10,000 for an apprentice to take on a housing trade
- providing $12,000 for employers to take on and mentor an apprentice
- revising the mortgage lending rules
- allowing first home buyers to access up to $50,000 of their super for a home deposit and.
HIA has welcomed the latest announcement to provide $12,000 of financial support for small businesses and tradies to take on an apprentice and support them through their trade.
Without an employer, there is no apprentice and financial support for employers. This is critical to addressing our nation’s chronic skills shortages.
HIA’s analysis shows we are facing an unprecedented level of skills shortage – in excess of 83,000 more tradies are needed right now to build the homes Australia desperately needs.
Financial incentives for apprentices to take on a trade are essential. However, unless we support the people who employ them, mentor them and guide these young workers through their trades and help them overcome the high dropout rates of apprentices, the numbers will continue to decline.
Be up to date
With the federal election taking place on May 3, HIA will continue to advocate for a comprehensive housing plan from both parties.
HIA’s Let’s Build election campaign calls on all major parties to make housing a national priority by:
- Addressing our chronic skills shortages
- Removing the barriers and roadblocks to support greater housing supply
- Establishing financial settings that supports all Australians into home ownership.
For more information, visit Let’s Build Australia.
First published on 9 Apr 2025.