Broking industry reaction to the Budget
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Several members of the broking industry have welcomed the federal budget’s measures for home ownership, but some have noted they will not curb the pace of house price growth.
On Tuesday evening (11 May), the federal budget for 2021-22 was handed down, outlining a range of steps to support home ownership and help small businesses recover from the coronavirus pandemic.
The main home ownership initiatives, such as the new Family Home Guarantee, had been announced ahead of the budget release, which the MFAA and several lenders have already welcomed.
Following the full budget being issued last night, more members of the broking industry issued their thoughts on the spending package.
Universities face further cuts in the Federal Budget, but vocational training providers say investment in skills training is well overdue Bianca Healey credit: Getty
The Federal Budget revealed investment unevenly distributed across the country’s higher education and vocational training sectors, with the latter winning out.
The JobTrainer program has gained additional funding, with the government’s apprenticeship program winning an additional $1.2 billion.
Peak university bodies argue they’ve missed out, while vocational organisations say the allocation of funds is the best way to get Australians into jobs.
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Peak bodies have reacted accordingly, with those in the university sector speaking out about what it considers another gut punch following the loss of more than 17,000 jobs since the start of the pandemic in March 2020 not to mention the financial impact of plummeting international student numbers.
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A better-than-expected economy has added $104 billion to the federal budget bottom line over the next four years. The government can largely thank tax revenues for that, especially from the booming mining sector.
But with a full $96 billion of that haul redeployed to spending and tax cuts, a wide range of cohorts and demographics are winners from Tuesday’s budget. Among them are Millennial and Generation Z investors – arguably not the country’s most marginalised community, especially given the sharemarket and crypto gains on offer over the past 12 months.
Check out the highlights from the budget lock-up in this video and a more detailed summary of measures relevant for budding wealth-builders below.
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For more than a decade, higher education was the spoilt, rich, mollycoddled cousin of the down-at-heel, wrong-side-of-the-tracks vocational education and training sector.
Billions of dollars flowed into university coffers as domestic student numbers swelled under the demand-driven system and international students arrived in their hundreds of thousands.
The tables have turned as the training sector finds favour over universities.
But university vice-chancellors and lobbyists kept complaining. Enough was never enough.
On the other side of town, the vocational skills sector was plagued by a stream of poorly designed policies and declining per-student funding.
Apprenticeship numbers spiralled ever downwards as students made the rational decision to go to university. After all, why pay fees to go to TAFE when you could get an income-contingent loan to attend university.