FEDERAL BUDGET 2024: IMPORTANT CHANGES AFFECTING AUSTRALIAN STUDENTS AND IMMIGRANTS

Treasurer Jim Chalmers announced the 2024 Federal Budget, from electricity subsidies worth A$300 per household to housing budgets, etc. However, the 2024 Federal Budget has placed pressure on the Australian government to relieve living costs and inflation in a challenging world economic climate.

Below is a summary of the innovations in the 2024-2025 Federal Budget that directly affect the housing market, international students, immigrant investment visas (BIIP), and taxes.  

Housing and real estate sector

The Federal Government will allocate $1 billion to a housing and infrastructure development fund. This budget helps local authorities build social housing and necessary infrastructure. In addition, another $1 billion will also be allocated to states and territories to invest in transportation, drainage and energy systems,…

The government has also doubled funding to $423 million over five years for social security and homeless services. Along with that, there will be a loan of $1.9 billion to build 40,000 affordable social housing homes. 

 Immigrants

The government will cap immigration numbers to 185,000 in the upcoming financial year, with 132,200 places allocated to specialist skills visa streams to meet long-term skills needs in Australia. And, invest more than $18 million over the next four years to reform the immigration system and promote more inclusive economic development. 

Australia’s Treasury forecasts net overseas migration will halve to 260,000 in 2024-25 after a record increase of 528,000 in 2022-23. This decrease is due to the Government’s policies to reform the migration system and reduce pressure caused by population. 

What’s more, the Government is also introducing a new visa pre-application voting process from this year for people from China, Vietnam and India who want to come to Australia on a work holiday visa — at a cost of $25 per applicant. 

In addition, a new program will be established that will allow 3,000 Indian graduates and early-career professionals to live and work in Australia for up to two years. Indian nationals who apply will have to pay $25, then pay $365 if the visa is successful.

International student training program

According to a bill soon to be enacted by the Federal Government, the number of international students will be limited. The Minister of Education will require educational units/institutions to limit the number of international student enrollments each year. 

In cases where universities want to recruit international students beyond the allowed number, they are required to build new seats specifically designed for students, bringing benefits to both international and domestic students.  

Details on student numbers will be determined through consultation with the educational institution. 

Universities

The Federal Budget presents a great opportunity for the higher education sector in the future, however, specific solutions are a burden for universities. 

University groups have expressed concern about the government’s plans to cap the number of international students, and require institutions to provide dedicated accommodation for students if they want to recruit over the limit.

The plan also requires universities to set aside 40% of student services and amenities fees for student-run organizations starting next year.

Student services and amenities fees for full-time students are currently at a maximum of $351 for this year, with no minimum requirement for amounts paid to student-run groups.However, following the completion of final consultations, further funding for the higher education sector is expected from 2026.

The government has set a target of 80% of working-age people having a university degree by 2050, and to achieve that it will need to increase the number of students from disadvantaged groups going to university.

This means that the number of students attending university will double by 2050. The Government is committed to having a funding mechanism to achieve the goal, including a need-based funding mechanism and need-based funding to support disadvantaged students in completing their degrees.

But all of that will not be resolved until the Government reaches an agreement with the higher education unit.

High income people

People with high incomes will be heavily affected by the new budget mechanism. Even though there is an income tax reduction policy applied from July, compared to the previous period, people with high incomes are still worse off.

As the Federal Government’s changes to stage three tax cuts have been introduced, people with taxable income above $146,000 will receive a lower cut than expected in the previous budget.

Overall, this is a reduction in forecast benefits for these taxpayers compared to the previous Federal Budget.

Taxpayers

From 1 July, taxpayers will receive tax relief under changes announced by the Federal Government earlier this year. This means workers in every tax bracket will pay less income tax.

Phase 3 tax cuts were enacted to take effect in July, but the Government has made certain changes. Under the Albanese Government’s reforms those with taxable income below $146,000 will receive a larger tax break than before, while those with income above that level will receive a smaller cut.

The tax cuts are the final step in the tax changes introduced by the former Coalition government. The reforms reduce the tax rate from 19% to 16%, reduce the tax rate from 32.5% to 30%, increase the 37% tax threshold from $120,000 to $135,000 and raise the 45% top tax threshold from $180,000 to $190,000.

To update the latest information on real estate investment trends & studying abroad in Australia, you can access and follow daily at Fanpage My Australian Property and other My Australian Property social media platforms such as Tik Tok.

Source: political reporters Jake Evans and Courtney Gould. (2024). Federal Budget 2024: Winners and Losers. From amp.abc.net.au

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