$10b in first home buyer support to be added at mid-year budget update
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The news: The federal government, in partnership with state and territory governments, will add an additional $10 billion in spending to drive the construction of 100,000 homes for sale to first home buyers, alongside billions more in additional spending related to election promises.
The numbers: The government will expand access to 5% deposits to all first homebuyers alongside the additional home building funds, both promised ahead of the 2025 federal election.
Additional commitments include:
- $1.1 billion for more free mental health services and additional training places
- $1 billion for an Economic Resilience Fund that will provide zero interest loans aimed at helping Australian businesses capitalise on export opportunities
- $956 million for infrastructure and local projects
- $98 million to fast track qualifications of 6,000 tradies and to establish a National Training Centre in New Energy Skills.
The context: There will be new funding to support the implementation of low or no cost policy commitments like banning supermarket price gouging.
The new spending commitments in the mid-year economic and fiscal outlook (MYEFO) are alongside billions in additional pressures across disaster relief, age pension and defence benefits and entitlements will weigh on the government’s fiscal position.
In November, the federal government said its budget position was $6 billion better than expected.
What they said: “From building more homes to new training centres and mental health centres, the mid-year budget update will deliver what matters most for Australians,” Treasurer Jim Chalmers said.
“We’re able to deliver the essential services and infrastructure Australians need and deserve because we’re managing the budget responsibly.
“The mid-year update will be sensible and it will be responsible, with more savings and more restraint, as well as funding the policies and programs Australians voted for at the election.”
The source: Treasurer Jim Chalmers media release
