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Easier to read and understand, our 2024-25 Federal Budget Summary wraps up the key changes and introductions that are likely to impact the property market.

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.

How will the 24-25 Federal Budget impact your property goals?

Wondering how this will impact your property goals? Whether you’re looking to buy, sell or invest, our team is here to help. Get in touch today to see how we can help make your property goals a reality.

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