The Housing Industry Association says home buyers and the residential building industry will benefit from the “steady” economic roadmap outlined in Treasurer Scott Morrison’s maiden budget.
Graham Wolfe, the HIA’s chief executive for industry policy, said the budget measures to support new approaches to infrastructure funding have the potential to unlock fresh opportunities for home buyers and improve housing affordability.
Mr Wolfe said the government’s commitment to maintaining the current tax regime for investors will “deliver certainty to the market, maintain a steady supply of residential rental properties and avoid panic decisions by investors that could disrupt the rental market as occurred in the 1980s”.
Furthermore, Mr Wolfe said the budget will provide much-needed confidence for the residential building industry.
“When combined with the decision taken [yesterday] to lower the official cash rate, which [has] already started to flow through to housing interest rates, the budget will help maintain the residential building industry’s capacity to make a significant contribution to employment and economic activity,” he said.
“The reduction in the company tax rate, its immediate extension to businesses with turnovers up to $10 million and the continuation of the $20,000 asset write-off program will also help the small businesses that dominate the residential construction industry to grow their employment and investment.”
[Related: Housing sales activity softer than last year]