Page 8 - FWP Wealth Adviser Issue 109

ISSUE 109
APRIL 2025

Housing affordability remains a critical issue for many Australians, and this
year’s budget introduces expanded measures aimed at helping first-home
buyers and renters alike. One of the key initiatives is the expansion of the “Help
to Buy” scheme, which allows eligible buyers to purchase a home with as little
as a 2% deposit while the government takes an equity stake of up to 40%.

analysis of the budget, “tax relief will help households Healthcare Reforms: Reducing
manage rising living costs while encouraging spending and 4Out-of-Pocket Costs
investment.” For individuals, this presents an opportunity Healthcare costs are a significant burden for many
to reallocate savings toward long-term goals such as su- Australians, but this year’s budget introduces reforms
perannuation contributions or investments in diversified designed to ease that pressure. Starting in November 2025,
portfolios. Medicare rebates for GP visits will increase substantially—
However, it’s important to approach these changes marking one of the most significant boosts to bulk billing
strategically. As Deloitte highlights in its budget analysis, incentives in recent years. This change is expected to benefit
“structural deficits remain a concern,” meaning that future over 11 million Australians by reducing out-of-pocket
tax policies may need to balance short-term relief with expenses for primary care services.
long-term fiscal sustainability. Australians should consider In addition to GP rebates, prescription costs under the
using their tax savings wisely by focusing on debt reduction Pharmaceutical Benefits Scheme (PBS) will be lowered
or building emergency funds to safeguard against potential further, with maximum co-payments reduced from $30 to
economic uncertainties. $25 per script. Specific measures targeting women’s health
have also been introduced, including expanded rebates for
Housing Affordability: New Opportunities IUDs and oral contraceptives as well as funding for meno-
3for Home Buyers pause-related treatments.
Housing affordability remains a critical issue for many According to NAB’s commentary on healthcare reforms:
Australians, and this year’s budget introduces expanded “These initiatives not only improve access but also address
measures aimed at helping first-home buyers and renters long-standing gender disparities in healthcare affordabili-
alike. One of the key initiatives is the expansion of the “Help ty.” For families managing tight budgets amid rising living
to Buy” scheme, which allows eligible buyers to purchase costs, these changes represent tangible savings that can
a home with as little as a 2% deposit while the government be redirected toward other priorities such as education or
takes an equity stake of up to 40%. retirement planning.
The scheme’s eligibility criteria have been broadened However, AMP cautions that while these reforms are
significantly, with higher income caps ($120,000 for singles welcome news for households, they come with significant
and $200,000 for couples) and increased property price fiscal implications given Australia’s ageing population and
limits across major cities and regional areas. However, as growing demand for healthcare services.
AMP notes in its analysis, “the scheme remains capped at
10,000 places per year,” meaning competition for these Broader Economic Implications:
spots is likely to be intense. 5Preparing for Long-Term Resilience
To complement this initiative, the budget also allocates Beyond individual measures like tax cuts and healthcare
funding for housing construction apprenticeships and rebates, the Federal Budget also addresses broader economic
grants aimed at increasing housing supply over the next five challenges such as energy costs and education affordability—
years. While these measures are steps in the right direction, both of which have far-reaching implications for household
Deloitte warns that “addressing supply shortages will wealth management.
require sustained investment beyond this budget cycle.” To combat rising energy prices, the government has an-
For prospective buyers, now is an opportune time to ex- nounced targeted bill relief for low-income households and
plore whether they qualify for these schemes and how they small businesses through direct subsidies funded by reve-
align with their financial goals. Consulting with a financial nue from renewable energy investments. As Deloitte points
adviser can help individuals assess their borrowing capacity out in its analysis: “These measures align with Australia’s
and understand the long-term implications of shared equity transition toward net-zero emissions but must be carefully
arrangements. managed to avoid inflationary pressures.”

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