Australia Economic Budget Update 2024/25

In announcing the 2024/25 Budget, the Federal government is attempting to provide some cost-of-living relief for households while maintaining a path of disinflation. 

The overall outlook for the economy remains upbeat; growth is forecast to remain positive, and inflation fall back within the RBA’s target band over the next fiscal year. However, near-term growth forecasts have been trimmed from the last budget, albeit modestly.

The pipeline for net overseas migration remains supportive of all segments of Australian CRE; net overseas migration is forecast to be nearly 1 million over the next four years. 

Addressing housing supply was a key component of this budget. A number of measures supporting the living sector were announced, including an additional $6.2 billion to increase housing supply. Measures supporting student accommodation, social housing and rent assistance also featured prominently. 

Nearly $3 billion in new infrastructure commitments were announced. A $1.9 infrastructure package for Western Sydney headlined the announcements.

The Budget aims to provide a path forward for the Australian economy. However, Australia is vulnerable to external shocks, which could cause the outlook to be revised.