The Federal Treasurer, Mr Josh Frydenberg, handed down the 2019/20 Federal Budget at 7:30 pm (AEDT) on 2 April 2019.
Mr Frydenberg said the Budget is “back in the black”, announcing a budget surplus of $7.1b, and forecasting continued surpluses into the future, building towards 1% of GDP with the aim to pay off Government debt by 2030. See below how the Federal Budget will affect Housing & Small Businesses:
The Federal budget 2019 of $1.7 billion recommitted for affordable housing but few new measures.
Mr Frydenberg highlighted the $300 million raised last week for the National Housing Finance and Investment Corporation, saying it was the largest social bond in Australia’s history.
The NHFIC, announced in the 2017-18 Federal Budget and also known as a bond aggregator, is a mechanism to provide cheaper finance for the community housing sector.
No significant announcements in relation to the NHFIC appeared in this year’s budget but an estimated $225 million will be spent on the program over 2019-20.
Affordability was talked about but few new measures were delivered and includes a government pledge to deliver almost $1.6 billion towards the National Housing and Homelessness Agreement, as foreshadowed in last year’s budget.
NSW will receive the largest slice with $484.2 million, followed by Victoria and Queensland at $406 million and $319.8 million, respectively. Sydney and Melbourne have been leading the fall at 9.9% and 8.4%, respectively. In the budget economic outlook, the government touched upon the fact falling house prices could detract from the forecast that predicts a real GDP growth rate of 2.75 per cent.