The Federal Budget has been delivered under rising inflation, a war in Europe affecting fuel prices internationally and ongoing supply constraints shaped by an upcoming election and the cost of living.
However, the Federal Budget anticipates a favourable economic outlook with low unemployment and net migration likely to recover in 2023-24.
Master Builders Victoria (MBV) has welcomed the Federal Government’s announcement that it will be expanding its First Home Guarantee Scheme to help thousands more Victorians enter the property market.
The First Home Guarantee Scheme ensures that part of an eligible buyer's home loan is guaranteed by the Government, which helps people buy a home quicker with a deposit as low as 2 per cent.
Under the expanded scheme, the Government will make 35,000 guarantees each year - up from the current 10,000 - from July 1, 2022, to support eligible first-time buyers purchasing a new or existing home.
Another 10,000 places will be guaranteed each year from October 1, 2022, to June 30, 2025, under a new Regional Home Guarantee to support eligible homebuyers, including non-first home buyers and permanent residents, to purchase or construct a new home in regional areas.
Finally, 5,000 guarantees will be offered each year from July 1, 2022, to June 30, 2025, to expand the Family Home Guarantee to help single parents with children buy their first home.
MBV believes the scheme’s extension is another step in addressing housing affordability and will help more Victorians build and own their own home.
The Federal Government also announced last night it would commit an additional $2 billion in funding to NHFIC to support the delivery of affordable housing.
Meanwhile, MBV has welcomed the Commonwealth Government’s $365.3 million investment to support an extra 35,000 apprentices and trainees get into work, especially considering current skills shortages, including bricklayers, carpenters, and concreters.
MBV also supports the new Australian Apprenticeships Incentive Scheme from 1 July 2022, which will help address skills shortages by supporting employers and apprentices in priority occupations such as bricklayers, cabinet makers, carpenters, wall and floor tilers and roof plumbers.
$954 million will be provided over five years to support this. To encourage more women into trades, the Federal Government will provide $38.6 million over the next four years to allow additional support to women who commence trade occupations that are higher paying on the Australian Apprenticeships Priority List.
MBV also welcomes enrolment for the Boosting Apprentice Commencement (BAC) wage subsidy being extended to 30 June 2022.
This scheme pays 50 per cent of the eligible apprentice’s wages in their first year, up to a maximum of $7,000 per quarter per apprentice.
Any business that receives the BAC wage subsidy will be eligible for extended support through the Completing Apprenticeship Commencements (CAC) wage subsidy for the second and third year of a Boosting Apprentices Commencement supported apprenticeship.
For a second-year apprentice, 10 per cent of their wages are subsidised up to a maximum of $1,500 per quarter per apprentice.
The employers of eligible third-year apprentices will receive 5 per cent of that apprentice’s wages up to a maximum of $750 per apprentice per quarter.
To view our full overview of the Federal Budget, click here.