Tim McKibbin
Tim McKibbin said the budget would likely be the last before an election. Image – Canva.
  • Budget will be handed down tomorrow night by Treasurer Josh Frydenberg
  • Measures announced so far include 2% deposit for single parents
  • Tax sweeteners could underpin buyer demand and sentiment according to REINSW CEO

Tim McKibbin, Real Estate Institute of New South Wales (REINSW) CEO, in his weekly snapshot of key topics affecting the New South Wales property market. addressed the upcoming federal budget.

The federal budget will be handed down at 19:30 AEST tomorrow.  Mr McKibbin referred to the major impact housing has made towards the post-pandemic economic recovery – which he expects to continue.

“The Government appears to recognise this with new measures designed to help more people secure a home, such as the 2% deposit for single parents and the increase in the maximum value of voluntary super contributions that can be accessed. Time will tell how effective these schemes will prove.”

Tim McKibbin, REINSW CEO

He added the Budget is expected to focus on job creation which he said could include ‘”tax sweeteners” that, in conjunction with low-interest rates, could continue to underpin buyer demand and sentiment.

“It will be interesting to see where the Government focuses infrastructure spending in the Budget, particularly with an election not too far down the track,” he said.

“Infrastructure in some regions has been exposed as insufficient as more people have relocated from the major cities. Irrespective of the Federal Budget, many local governments need to mobilise to cope with the influx of people.”

Mr McKibbin also provided commentary on data suggesting the pace of growth is easing – something which he says is expected at this time of year.

“Nevertheless, clearance rates are expected to remain high this week and vendors will continue to reap the rewards of strong demand,” he said.

“The intensity of the recent rises in home values may be easing but continued growth in the short to medium term remains likely, especially in the regions.”

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