Growth Expected

Economic growth is forecast at 2% next year and 2.25% in 2025-26.

Inflation to Fall

The treasury expects inflation to fall to 2.75% by June 2025 (a more optimistic view than what the RBA has forecast).

Employment to Slow

Employment growth is forecast to slow from 2.25% this year to 0.75% in 2024-25, with unemployment rising to 4.5%.

Increased Borrowing Power

• Boosts from Tax Cuts
  Homebuyers will be able to borrow tens of thousands more next financial year due to tax cuts aimed at lowering the cost of living.
• Higher Take-Home Pay
  Adjustments to tax rates will increase most taxpayer’s take home, enhancing their ability to borrow for a home.
• Auction Advantage
  This increase in savings could make a significant difference during home purchases, potentially being the deciding factor in competitive bids.

Advantage for Dual Income Homes and First Home Buyers
Households with dual incomes will see a more substantial impact, potentially doubling the borrowing capacity increase.

Higher interest rates have constrained borrowing capacities for first-home buyers in the past, making the tax cuts particularly beneficial. Those buying affordable properties will benefit the most from the increased borrowing capacity.

Tax Cut Timing
Banks may take a month or so to update their calculators to reflect tax cuts, but brokers can manually adjust calculations sooner – allowing home buyers to take advantage of their additional take home pay sooner.