Mr Frydenberg has announced an additional $13.2 billion over four years would be spent to “meet the needs” of Australians with disability. There are currently 450,000 people receiving disability support with more than 100,000 joining the scheme in the past year.
“As the scheme reaches maturity, our focus is on ensuring its sustainability and that it continues to deliver a high quality essential service for those who need it,” he said.
In total, funding for the NDIS is expected to reach $122 billion in the next four years, along with state and territory as well as federal contributions. A total of $17.9 million will be directed towards early support for young children with developmental concerns or disability.
VIDEO: Josh Frydenberg says NDIS will always be fully funded under the Coalition
The Federal Budget and what this means for Property?
The government has extended the homebuilder program and subsidies, but says slower population growth will help cool the housing market in the longer term.
Extensions to the homebuilder program and subsidies for first home buyers announced in Tuesday’s budget will tip more money into Australia’s already red hot property market.
But the government says slowing population growth and the wind down of government subsidised construction activity will help cool things down in the longer term.
The homebuilder program has prompted $30bn worth of residential construction activity since June last year and is contributing to Australia’s record high house prices, Treasury said.
The program, which provides owner occupiers with a grant of up to $25,000 to renovate or build a new home, has received over 120,000 applications and is expected to drive a 2.5% lift in dwelling investment, the government forecasts.
The homebuilder six-month construction period, in which projects were slated to start, has recently been extended to 18 months.
“The near-term outlook for housing activity has strengthened considerably, supported by an elevated pipeline of construction work and rising house prices,” the budget papers say.
“As the outlook for elevated levels of detached house construction unwinds, slower population growth is also expected to limit demand for higher-density dwellings in coming years, such that the recent strength in housing market activity is not expected to be sustained.”
Housing affordability is top of mind for Australians as house prices rose at their fastest pace in more than 30 years in March. The median house price in Sydney recently hit $1.3mn and $1mn in Melbourne.
The demographic shift from cities to suburbs may also curb runaway property prices.
“It is not yet clear what structural changes will result from the pandemic, particularly given the greater propensity to work from home during the pandemic,” Treasury said.
“Changing preferences for more outer-city, spacious and detached housing may also limit growth in apartment construction in coming years.”