The 2005-06 budget will produce a moderate increase in economic growth along with a steady increase in non-dwelling construction investment: a surplus of $8.9 billion is expected for the period.
News for the property industry includes:
- The Government’s future fund is to be established and while funds will not be used for infrastructure directly, the property industry will benefit from increased investment;
- With a further allocation of $563.1 million, the Treasurer has reconfirmed his commitment to force the states to honour their promises to eliminate inefficient taxes under the IGA, including the abolition of Stamp duty;
- The Government has finally agreed to let developers deduct ‘black hole expenses’, including costs associated with the establishment phase of projects;
- More will be spent on critical infrastructure protection; and
- Government moves in regards to childcare have the potential to speed the development of childcare property as a sub asset class.
For a full analysis of the budget, click here
to download the PDF.