One group hit hard in Albanese government’s first budget

One group of Australians has missed out in Labor’s first budget in nearly 10 years, with no short-term relief in sight.

Australian renters have missed out on any immediate relief in this Federal Budget.

That’s despite the budget including warnings from Treasury about the tightening rental market.

Rents are expected to pick-up considerably in the next two years as strong population growth and limited housing stock drive up demand.

The budget notes advertised rental prices have already risen sharply over the past year, climbing by 10 per cent on average nationwide to September.

And the overall rental costs reflected in the consumer price index – the government’s official marker of the average rate of inflation – are also expected to increase.

The Albanese government’s first budget hasn’t included any short-term plans to bring down rental prices or to provide relief to tenants who are struggling with the cost of living.

The federal budget’s key new measure is housing-focused.

Labor has announced an affordable housing accord it has signed with the states and territories and private investors including the superannuation industry.

Everybody’s Home national spokeswoman Kate Colvin welcomed the housing accord.

The deal outlines an “aspirational target” to build 1 million new homes in five years from 2024 which would target areas of low vacancy and high rents, with the focus likely to be on regional Australia.

The accord includes $350m to build 10,000 affordable homes over five years from 2024, on top of the $10bn Housing Australia Future Fund, which will build 30,000 new social and affordable housing properties.

State and territory governments have also committed to building 10,000 homes under the accord.

Everybody’s Home national spokeswoman Kate Colvin welcomed the package.

“The accord has the potential to be a game changer for housing affordability, which has spiralled out of control with devastating consequences for so many Australians,” she said.

Jim Chalmers said earlier on Tuesday the accord was part of the plan to tackle the dearth of affordable rental properties in Australia.

However, it won’t have any effect on the price of rents for at least the next three years.

He mentioned renters once in his budget speech, as he promised to make sure renters and apartment owners would benefit from Labor’s plans for cheaper energy.

Treasurer Jim Chalmers handed down his first Federal Budget on Tuesday. Picture: NCA NewsWire / Gary Ramage

The government will spend $224.3m to deploy 400 community batteries across Australia, to support people living in apartments, social housing and rented properties to access solar power and cheaper energy bills.

The investment will be managed by the Future Fund Management Agency, to generate returns to fund the delivery of 30,000 social and affordable homes over five years and allocate $330m for acute housing needs.

And Labor will spend $324.6 million over four years to establish its Help to Buy shared equity scheme to assist people on low to moderate incomes to purchase a new or existing home.

The Regional First Home Buyer Guarantee will be offered to 10,000 people each year from this month.

The scheme will support regional first home buyers to purchase new or existing homes with a deposit of just 5 per cent.

It isn’t funded in this budget, however, because Labor says it will cover the cost by redirecting funding from a similar measure which was included in the March budget.

Originally published as One group hit hard in Albanese government’s first budget