Generate a concise and informative excerpt (around 150 words) for the following article, highlighting the key points and making it relevant to Australian property professionals:
On Friday morning, Prime Minister Anthony Albanese officially announced that the federal election will be held on May 3, following Treasurer Jim Chalmers’ fourth budget and Opposition Leader Peter Dutton’s reply, focussing on cost-of-living relief.
Pre-election budgets are typically broad and strategically crafted, offering something for everyone. Cost-of-living relief is at the heart of both the government’s budget and Dutton’s response.
Kosmos Samaras, from RedBridge, noted, “Budgets generally do not provide the government of the day with an electoral boost.” Photo: Supplied
Kosmos Samaras, a pollster from RedBridge, noted, “Budgets generally do not provide the government of the day with an electoral boost.”
“The real advantage here is allowing Labor to continue its campaign momentum that it has been building for several weeks,” Samaras told Neos Kosmos.
He added that Labor has successfully focused on its key strengths, while “the Coalition has been largely absent from the real political debate about the cost of living and the economy.”
The tax cuts were the centrepiece of Tuesday night’s budget, aimed at giving all taxpayers up to $268 in 2026-27 and $536 every year after that. The budget was a pitch to middle Australia, through core Labor programs such as the $8.5 billion Medicare boost – which will not be opposed by the Opposition – increased wages for aged care workers, and investment housing affordability measures.
Minister for Housing Clare O’Neil said, “We need to build more homes at the affordable end of the market”. Photo: AAP/Mick Tsikas
Tax cuts for all Australians are also aimed at easing cost-of-living pressures, particularly for middle-income earners.
Peter Dutton promised to slash power bills, permanent migration and government spending in his pitch to become prime minister, along with a short-term cut to fuel tax excise. in a bid to appeal to the outer suburbs. He ruled out offering any further income tax breaks and promised to repeal Labor’s tax cuts, the federal election will be fought on which party can better address hip-pocket pain.
The Opposition leader promised to bring down power bills by pumping more gas into the energy grid and set up a domestic reserve for the east coast to protect against international price spikes.
“The only way to drive down power prices quickly is to ramp up domestic gas production,” he told parliament on Thursday night.
Dutton focused on cutting “waste” in bureaucracy more than 40,000 public servants would be axed to save a projected $7 billion, but frontline services would not be affected, he said.
Cost-of-living relief, you say, here tax cuts for all
Tax lawyer Tony Anamourlis highlighted a persistent trend in both Labor and the Coalition of reducing taxes, one way or another, for middle-income earners, reflecting “a convergence of economic, political, and social considerations unique to Australia’s electoral landscape.”
“These two parties have increasingly moved toward centrist policies, seeking to satisfy a broad middle-class constituency that is crucial to winning elections,” Anamourlis said.
Tax lawyer Tony Anamourlis highlighted a persistent trend in both Labor and the Coalition of reducing taxes for middle-income earners. Photo: Supplied
Tax relief for the middle class is popular he said, “it resonates with the largest segment of Australia’s voting public.”
“Both parties contend that middle-class households bear a disproportionate share of the tax burden while simultaneously shouldering rising living costs, such as mortgage payments, childcare expenses, and utility bills,” he added.
The opposition rejected tax-cuts, a centrepiece of Labor’s federal budget which will see the 16 per cent tax rate cut to 15 per cent next year and 14 per cent after that, costing the budget $17.1 billion over the four-year forecast period. The opposition will instead forgo $6 billion to slash the fuel excise by 25 cents a litre, making it about $14 cheaper for a tank for the average motorist, Dutton said, though analysis reported by The Age states an average saving of $6 a week.
Anamourlis pointed to the debate raised by Brian Bell from the Manhattan Institute, who argues that “tax reductions create larger deficits or spur productivity.”
“When ostensibly parties champion tax cuts without corresponding spending restraints, the inevitable result can be ballooning public debt,” Anamourlis noted.
“The Australian experience illustrates how continuous promises of enhanced public services—particularly in healthcare, education, and infrastructure—sit uneasily alongside diminished revenue streams.”
Aged care funding and reforms – just not enough
The Greek Australian community is an ageing one, with the first generation into their 80s and the second generation late 50s to mid 60s, age care funding and reform is important. The budget’s $2.6 billion investment in wage increases for aged care workers was welcomed by Faye Spiteri, CEO of Fronditha Care, and deputy chair of the Ageing Australia Victoria Council.
However, she expressed concerns about the lack of additional funding for the sector as it prepares for major reforms under the new Aged Care Act, which comes into effect on July 1, 2025.
Faye Spiteri, CEO of Fronditha Care and deputy chair of the Ageing Australia Victoria Council welcomed increased pay for aged care workers. Photo: Supplied
“Unfortunately, there have been no additional funds allocated through the budget to support the sector in preparing for transformation to be ready for the significant reforms taking hold on July 1, 2025,” Spiteri said.
The Act will end the Home Care Packages and introduce the new Support at Home program, along with a means-tested non-clinical care contribution (NCCC) for aged care residents.
“Fronditha Care is in the throes of preparation for readiness to implement Support at Home and other reforms,” she added.
“As deputy chair of Ageing Australia Victoria Council, I know the peak body is lobbying hard for additional sector funding, and we may see additional announcements during the upcoming election campaign.”
Housing crisis and government response – prefab dreams
The government’s response to the housing crisis included an $800 million expansion of the Help to Buy Scheme, increasing income and price caps to assist 40,000 buyers.
“This is part of our efforts to help more Australians buy a place of their own,” Treasurer Jim Chalmers said during his budget address.
The scheme is particularly focused on Sydney and Melbourne, where housing affordability remains a key concern. Additionally, a $21 billion housing supply investment will fund 18,000 new affordable homes, with individual income eligibility increased from $90,000 to $100,000, and joint applicants from $120,000 to $160,000.
There is also a $54 million allocation for prefabricated and modular housing.
“Making homes in factories instead of onsite could cut construction time in half,” Housing Minister Clare O’Neil said.
“We need to build more homes at the affordable end of the market—that’s why we want 1.2 million homes built over five years and assist first home buyers,” she told Neos Kosmos.
However, the property industry has criticised the budget for lacking bold reforms. Industry leaders have called for regulatory changes, particularly regarding the Foreign Buyer Ban, which prevents overseas investors from purchasing existing homes until 2027.
Theo Maras, CEO of the Maras Group and Chairperson of the Adelaide Economic Development Agency, called the budget “disappointing” and lacking “genuine, long-term planning.”
Theo Maras, CEO of the Maras Group and Chairperson of the Adelaide Economic Development Agency, called the budget “disappointing” and lacking “genuine, long-term planning.” Photo: Supplied
“There remain many hurdles to delivering more housing that have not been addressed in this Budget, including planning and zoning regulations and the lack of available construction workforce,” he said.
The demand for skilled construction workers may outpace TAFE’s ability to train new tradies over the next four years. While increasing skilled migration could help fill the gap, construction unions and local tradies, benefiting from high demand, are resistant to the idea.
While he welcomed the expanded Help to Buy scheme and the modest investment in modern construction methods, he argued that “they just do not address the current underlying issues affecting housing supply.”
The opposition have taken a minimalist approach promising to unlock “500,000 new homes” with a $5 billion boost to “infrastructure like water, power, and sewerage at housing development sites”.
The other key components in the Opposition’s approach to increased housing affordability was to look at reducing compliance costs, and a cut on net migration. Net migration has already fallen and according to the ABS figures in 2023-2024 we had 446,000 new immigrants, down from 536,000 in the post-pandemic period. https://www.abs.gov.au/statistics/people/population/overseas-migration/latest-release
Big hug the Gen Zer and Millennials – is it enough?
Professor of Marketing at RMIT University, Foula Kopanides, said the government is hoping to reshape brand among younger generations. Photo: Supplied
Professor of Marketing at RMIT University, Foula Kopanides, said the government is hoping to reshape brand among younger generations through the Help to Buy scheme and increased housing stock.
“But how affordable is the Australian dream? And for whom?” Kopanides asked.
She noted that while Gen Z aspires to earn around $200,000 annually for a comfortable lifestyle, home loan interest rates ranging from 5.74 per cent to 7.39 per cent make homeownership challenging.
“For the remaining 45 per cent of Millennials still aspiring to own a home, their annual income of approximately $100,016 (ABS 2024) may present insurmountable obstacles,” she said.
Professor Kopanides suggested that Labor is positioning itself as the party championing young and first-time home buyers to secure their loyalty but questioned whether it represents a “genuine commitment by the government to support this key demographic as first-time home buyers.”
The federal budget is focused on easing cost-of-living pressures, as is the opposition’s reply. Aged care providers await more funding, housing experts call for bolder reforms from both parties. Whether Labor’s or the Coalition’s promises will resonate with voters remains to be seen, what is certain is we are now in campaign mode.
