Scott Morrison’s budget delivery had some specific winning aspects for Canberrans including, individual tax cuts, small business tax concessions and upgrades to major roads which will coincide in boosting Canberra’s economy.
Rewind to 12 months prior, when the Treasurer delivered a budget focusing on housing affordability, which introduced incentives to give first-home buyers a leg in the property market door, older Australian’s were encouraged to downsize with tax incentives and a limit was placed on foreign investors. This year was a different story, with little acknowledgement of improvements to housing affordability or proposed measures to ease the growing issue – that’s the takeaway for Canberra’s property industry.
With the Australian Prudential Regulation Authority’s (APRA) crackdown on bank lending and the ongoing royal commission into financial services, this will no doubt have the strongest effect on house prices.
It’s not all doom and gloom. One of the budget’s more significant measures, is an individual tax cut applicable to lower and middle income earners ($47,000 – $90,000 per annum). Effective as of next year, Canberrans within this income bracket can expect to receive a tax break of up to $530 per annum, or $10 per week. While it may appear marginal to some, for struggling Canberra households these tax breaks could help reduce the burden of mortgage stress, bills and allow for a more relaxed household budget.
Further to this, the budget looks to encourage small business growth and employment. Canberra especially, is primarily built up of small business operators, who will be comfortable with the extension of the $20,000 instant asset write-off for businesses with a turnover of less than $10 million. This measure will continue to have ongoing positive effects on the economy.
In relation to road upgrades, two of Canberra’s major highways, Barton and Monaro, will both equally receive $100 million in federal government funding. These improvements will extend the availability of access to the larger region as well as make commuting easier, which will in turn strengthen and boost our economy.
In terms of housing, the budget did not have any new measures that explicitly addressed housing affordability or supply, the only acknowledgement was a confirmation that ‘The National Finance and Investment Corporation’ and the new ‘National Housing and Homelessness Agreement’ announced in last year’s budget are set to commence next financial year.