Federal Budget: Highlights for property investors

The new Federal Budget released on Tuesday, contains much to be optimistic about for property investors. The government has announced several initiatives to address the cost of living crisis in Australia, and many of these measures will have a direct impact on the property market.

Treasurer Jim Chalmers forecasts a surplus of $9.3 billion for 2023-24, with the Budget aiming to support economic growth and job creation while also addressing key issues like housing affordability and rental stress.

Housing was a major focus, with the Treasurer stressing that the government was unlocking funds to enable more homes to be built, while also delivering measures to help with housing pressures right now.

Rental assistance, alongside energy bill relief, are estimated to “directly reduce headline inflation by ½ of a percentage point in 2024-25” – while not adding to broader inflationary pressures.

According to the Treasury, “this could see headline inflation return to the RBA’s target band by the end of 2024, slightly earlier than expected at MYEFO (the mid-year economic and fiscal outlook).

Income tax cuts

May 2024 Budget Announcement

One of the biggest highlights for property investors in this year’s Budget is the income tax cuts. The change to the personal income tax system will result in a tax cut for millions of Australians. This means more disposable income for individuals, aimed at increasing spending to send the economy out of its current slump.

$300 energy bill relief 

The Federal Government has promised households energy bill relief in back-to-back budgets, this time offering 10 million families $300.

It’s expected this will be directly paid to energy accounts, providing a credit to cover future bills.

The relief payment will be offered in addition to various state government initiatives, such as Queensland’s $1,000 rebate and Tasmania’s $250 rebate, to eligible households. It will cost the government $3.5 billion.

Benefit for property investors

Having less of your income taken out in taxes also means more money to invest. Property investors can use their extra disposable income to bolster their existing property portfolio or enter the market for the first time

The Senate has already approved the federal government’s updated Stage 3 tax cuts, providing up to $1500 in tax relief for individuals earning an average income of approximately $73,000. Additionally, higher earners will also benefit, as the highest tax rate of 45% will now apply only to those earning above $190,000, an increase from the previous threshold of $180,000.

Designed to alleviate cost-of-living pressures and stimulate the economy, these tax cuts also effectively address the problem of bracket creep. The cuts reduce the tax rate for the lowest two brackets, meaning we all pay less tax, and increase the threshold for the two highest brackets, so higher rates apply only to higher earners.

While strategic property investment gives you the keys to a financially secure future, these tax cuts add one more tool to your arsenal to help you achieve that goal.

As unveiled by Prime Minister Anthony Albanese last Friday, this year’s budget includes $11.3 billion to address the acute housing shortages facing Australians.

This package, called the ‘Homes for Australia’ plan, includes $9.3 billion that has already been pledged over five years under the National Agreement on Social Housing and Homelessness, which will be dedicated towards repairing social housing and providing crisis support.

A further $6.2 billion in new investments was added to the plan in the latest budget, bringing the total amount of funding invested in housing since 2022 to $32 billion.

Housing spending

$1 billion of budget spending is directed to support the housing market. This investment will cover the costs of roads, sewers, and connections for energy and water for new homes.
The budget also delivered $1.9 billion in concessional loans to help community housing providers construct 40,000 social and affordable homes.

Meanwhile, the $2 billion Social Housing Accelerant Payment will fund 4,000 new or refurbished social houses.

This is a clear sign that the government is dedicated to supporting the housing market and promoting new developments to ease the housing affordability crisis. Property investors should take see this as a positive sign, with the potential for increased demand and growth in the housing market. This spending, combined with the RBA recently pushing pause on interest rates and tax cuts, creates a favourable environment for property investors.

As demand for housing is expected to increase, investing in the right property now is crucial. With the government actively supporting and promoting new developments, purchasing an off-the-plan investment property is a smart move for investors looking to capitalise on the current market conditions.

Rental assistance

Off the back of a 15 per cent increase to Commonwealth Rent Assistance included in the 2023-24 budget, Chalmers announced the maximum rate would grow by a further 10 per cent for those receiving the benefit. Currently, a single person getting rent assistance receives up to $188.20 every two weeks. Under the new Budget, that amount will increase by $19 every two weeks. This increase will cost the government an extra $1.9 billion over the next five years, it is the “first back‑to‑back increase to Commonwealth Rent Assistance in more than 30 years”.

Property investors can take advantage of this increase in rental assistance by targeting affordable rental properties and providing much-needed accommodation for low-income households. This not only provides a steady source of income for investors but also contributes to addressing the current rental affordability crisis.

Increasing the pipeline of construction workers

The government has earmarked $90.6 million within this year’s budget to boost the construction workforce.

This contribution aims to remove the cost barriers to education and training for construction careers with $88.8 million put towards 20,000 additional Fee-free TAFE training places to increase the pipelines of workers in construction and housing.

It also includes $62.4 million to flow to the states and territories that will provide an additional 15,000 Fee-free TAFE and VET places over two years from 1 January 2025.

Another $26.4 million was pledged to create approximately 5,000 places in pre-apprenticeship programs over the same period.

Within the latest financial statement, the government additionally committed to maintaining $5,000 support payments to priority occupations for another 12 months to 1 July 2025, marking an increase from $3,000.

According to the government, “this will provide certainty to apprentices while the Strategic Review of the Apprenticeship Incentive System is underway.”

Superannuation on paid parental leave


From July 1, 2025, superannuation contributions will be made on government-funded parental leave. This aims to mitigate the gender superannuation gap, acknowledging that, on average, women retire with 25% less super than men.

When it comes to property investment, women still trail behind men, with CoreLogic’s Women & Property Report 2023 showing that in Australia, only 29.5% of properties are owned by women.

The Budget’s focus on closing the gender super gap is a step in the right direction toward financial equality. Women can further secure their financial future and close the wealth gap by investing in property.


The new Budget is a win-win for both investors and tenants, with increased rental assistance helping to alleviate the current affordability crisis while also providing steady returns for property investors.

Property investors should see the new Federal Budget as further evidence of the government’s support for the property market and more opportunities to secure a financially free future.

If you are interested in investing in property and want to learn more about how you can take advantage of government incentives, speak to us at Ironfish. With a proven track record and a team of experienced property investment specialists, we can help you invest strategically so you can achieve your financial goals.

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