Australian Federal Budget highlights several themes for building

The 2024/25 Federal Budget delivered little to shift the outlook for building construction, although there was modest movement connected to housing, tertiary education, manufacturing, and defence. The budget restated significant funding programs for the defence sector, however the timing of some programs was adjusted. Key investments will have a very long tail, stretching well into next decade.

Access the research report to learn more about the key points outlined below:

• Housing supply has been a key concern for the Albanese government. The budget allocated north of $5 billion in incremental capital, predominately finance to support private sector delivery of housing rather than direct funding. While the National Housing Accord target of 1.2 million dwellings was reaffirmed, the budget does little to shake our view that this target will not be met given our expectation of dwelling construction over the remainder of this decade.
  
  
• International students remain under the microscope. More stringent testing requirements and risk assessments were reiterated, while momentum in student visas had already turned negative prior to the budget. Elsewhere, a new cap on international student enrolments for universities was flagged. Despite indications the application fee for student visas would be raised, the budget and recent announcements have provided no further clarity.
  
  
• Manufacturing and industry are set to receive a boost from the new Future Made in Australia Act. This strategy has a focus on areas such as rare earth mineral processing, hydrogen production, and solar panel manufacturing. Funding is not expected to start until FY2028, providing long term upside for industrial building.