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Markets15 January 20245 min read

January 2024: Stage 3 redesigned

Albanese restructured Stage 3 tax cuts to skew toward low-and-middle income. Average household gained roughly $1,500. Borrowing capacity at the median expanded for the first time since 2021.

Why it mattered for property

Stage 3 (revised) lifted post-tax income for the median Australian household by roughly $1,500 per year. At standard serviceability ratios that translated to ~$25,000 additional borrowing capacity per household — directly stimulative for the owner-occupier segment that anchors new-build estate pricing.

Investor read

Stage 3 was a transmission belt for the new-build demand story. Builder enquiry through Q1 2024 rose materially. Investors entering before the demand pulled forward captured the strongest H1 2024 acquisition window of the cycle.

Dax Stanley

Founder & Principal Strategist, Hera Property. #1 international bestselling author of Real Estate Investing Using ChatGPT.