Federal Budget 2024-25: funds to boost housing supply, relief for renters and homeless

The government is hoping to improve the supply and affordability of housing, which has been hampered by supply chain bottlenecks from the COVID-19 pandemic and high construction and finance costs.

As part of the new national agreement on social housing and homelessness, the states and territories will get $1 billion in 2023-24 for infrastructure works to prepare for new housing.

Further funding will be available for the states and territories to help clear infrastructure bottlenecks that cause delays to constructing new housing.

Spending on social housing and homelessness services will also get a boost to $1.8 billion per year, while community housing providers will be able to access more finance from the federal government to build 40,000 social and affordable homes.

The government will target $1 billion towards crisis housing for women and children fleeing domestic violence and youth, however this was part of the National Housing Infrastructure Facility revealed in the Mid Year Financial Economic Outlook for 2023-24.

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There will be 20,000 more fee-free training places in TAFE and other registered training organisations in a bid to increase the number of construction workers to meet the lofty goal of 1.2 million new homes built in five years.

The government will also work on streamlining the skills assessment process for migrants who wish to work in Australia's housing construction industry.

Residential builders and building industry peak bodies will get targeted help for buildings needing work health and safety accreditation.

The budget has some measures aimed to support renters. The maximum Commonwealth Rent Assistance rates will increase by 10 per cent. The government has touted this as the first time in 30 years that the payment has increased in back-to-back years, following a 15 per cent increase in the previous budget.

Foreign investors will be able to purchase existing build-to-rent properties with a lower foreign investment fee, as long as it continues to be operated as a build-to-rent property. These properties are usually unit blocks owned and managed by one operator to be leased to tenants with the aim of boosting supplies of rental properties.

The government had already revealed its strategy for boosting housing supply for university students. This is by placing limits on how many international students can be enrolled by each university based on a formula which take into account how much new student accommodation they build.

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