Housing Industry Association (HIA) Chief Economist Tim Reardon says that measures in this most recent federal budget will have a positive impact on affordability by improving household disposable income.<\/p>\n
\u201cFor the past five years the building industry has driven economic growth in Australia,\u201d Mr Reardon said.<\/p>\n
\u201cIn contrast, the budget assumes that dwelling investment will cool 7 per cent next year.<\/p>\n
\u201cThe timing of income tax cuts on July 1 2019 combined with a modest growth in wages will see an increase in household disposable income.<\/p>\n
\u201cThe combined impact will boost household consumption faster than an interest rate cut and assist in offsetting the credit squeeze.<\/p>\n
\u201cWith the building and construction industry employing one in 10 workers in Australia, maintaining a strong building sector is important not just in terms of employment but also to ensure that adequate new homes are built to avoid a worsening of the affordability challenge.<\/p>\n
\u201cThe boom in building activity has brought with it an increased demand for transport and economic infrastructure.<\/p>\n
\u201cThe expansion of transport networks is crucial to the ongoing revolution of our cities and regional centres.<\/p>\n
\u201cThe Budget\u2019s increase in expenditure on infrastructure projects will also play an important role in absorbing employment as the housing industry cools.<\/p>\n
\u201cThe increased incentives for training apprenticeships are significant and necessary as the industry has faced significant skills shortages over the past decade.<\/p>\n
\u201cThese incentives more than double the existing federal government incentives over the term of an apprenticeship.<\/p>\n
\u201cThe small businesses that dominate the home building industry in Australia will appreciate the increase in the instant
\nasset write off, at a time when they are seeing their revenue slow.<\/p>\n
\u201cThe improved fiscal outlook presented in the Budget and these new measures should improve confidence amongst customers when making home building and renovating decisions.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Housing Industry Association (HIA) Chief Economist Tim Reardon says that measures in this most recent federal budget will have a positive impact on affordability by improving household disposable income. \u201cFor the past five years the building industry has driven economic growth in Australia,\u201d Mr Reardon said. \u201cIn contrast, the budget assumes that dwelling investment will […]<\/p>\n