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PEXA Group welcomes housing measures in 2024-25 Federal Budget – but warns immediate housing shortages set to deepen

By PEXA - 14 May 2024

PEXA Group welcomes housing measures in 2024-25 Federal Budget – but warns immediate housing shortages set to deepen

News Release
Tuesday, 14 May 2024

PEXA Group (PEXA), Australia’s leading digital property exchange platform and property insights solutions business, today welcomed the early-announced housing measures in the Albanese Government’s third Federal Budget, which will be handed down by the Treasurer, the Hon Dr Jim Chalmers MP, amid a backdrop of high inflation, high Government debt and slowing economic growth.

Budget forecasts confirm that after several years of disruption and volatility, Australia’s economy faces an extended period of slower GDP growth, population, and job growth, but with a more positive outlook for inflation.

PEXA Group Chief Economist, Julie Toth, commended the Government for prioritising measures to improve housing supply and affordability in this budget, despite multiple competing pressures, but warned housing shortages are likely to get worse before they get better.

“The additional measures and funding announced in this week’s Federal Budget are very welcome – $1 billion in new funding will make a real difference to urgently required crisis and transitional housing across Australia. Future support for trade apprenticeships, essential urban infrastructure and purpose-built student housing, will help reach the Government’s Housing Accord ‘stretch-target’ of 1.2 million new homes.”

“However, we remain concerned about Australia’s immediate housing shortage. The Government’s first annual National Housing Supply and Affordability Council (NHSAC) report predicts Australia’s housing shortage will worsen until around 2027, due to rising population, diminishing household sizes and construction supply constraints. This imbalance will eventually improve as demand growth slows and construction capacity increases. Unfortunately, in the meantime housing affordability for buyers and renters is likely to deteriorate further.”    

“We know that resolving Australia’s housing availability and affordability problems is complex. All levels of Government must pull in the same direction to actively support industry and community initiatives. No single measure or organisation can solve this housing shortage alone,” she said.

In PEXA’s Federal Budget Submission, PEXA and not-for-profit organisation, Housing All Australians, proposed establishing a national register of all private-sector affordable housing projects, across all jurisdictions. This register would facilitate tailored responses to Australia’s urgent housing needs, allowing for real-time tracking, adjustment, and evaluation.

“Effective housing solutions require collaboration between governments, industry and communities. We hope the Government considers our proposal alongside existing affordable housing programs,” Ms Toth sad.

The housing-related measures announced by Government this week, include:

  1. An additional $1 billion for crisis and transitional accommodation for women, children and children fleeing domestic violence, provided via the National Housing Infrastructure Facility;
  2. An additional $1 billion provided to State and Territory Governments to build and upgrade the physical infrastructure necessary to support new dwellings;
  3. A renewed 5‑year National Agreement on Social Housing and Homelessness with the State and Territory Governments that will double Commonwealth funding for homelessness services to $400 million every year (matched by states and territories), providing $9.3 billion in total;
  4. Free training places for an additional 20,000 building trades apprentices, from 2025;
  5. Work with universities and tertiary colleges to boost dedicated student accommodation;
  6. An expected increase to Commonwealth Rent Assistance for eligible low-income earners.

In addition, Ms Toth welcomed the Government’s confirmation this week that it will begin to implement anti-money laundering and counter-terrorism requirements for real estate and other financial transactions by lawyers, accountants, real estate agents and others (‘tranche 2 entities’). The Government has allocated $166 million to AUSTRAC for implementation and industry education.

“We look forward to working with AUSTRAC to ensure the smooth implementation of these important new security and integrity safeguards for Australia’s giant real estate sector, which is worth over $10 billion in residential properties alone,” Ms Toth said.

“PEXA welcomes this year’s Budget measures to improve Australian housing supply, affordability and financial integrity, now and over the long-term. We commend the Government for prioritising these housing issues in the current economic climate,” she said.



For more information, please contact:

Danielle Tricarico – Head of Corporate Affairs, PEXA
M: 0403 688 980

Kate Prigg – Corporate Affairs Manager, PEXA
M: 0497 595 580


About PEXA

PEXA is a world-leading ASX-listed digital property exchange platform and property insights solutions business. Since 2013, PEXA has facilitated more than 16 million property settlements through the PEXA Exchange in Australia, with 90% market reach, and in 2022 PEXA launched in the UK. The PEXA Group of companies, including: .id (Informed Decisions), Value Australia and Land Insight, delivers digital insights and property solutions that help government, financial institutions, banks and property practitioners to unlock the future value of property.


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