Cairns Economic Monitor- April
Cairns Economic Update: Signs of Growth, But Budget Brings Mixed News for Business
The latest Cairns Economic Monitor has landed — and it’s full of insights to help businesses make smart, forward-thinking decisions. From market trends to industry performance, staying informed is key to staying competitive.
Local economic boost:
January delivered an unexpected uplift in building approvals across the Cairns region — great news amid the ongoing accommodation crisis. If this trend continues, it could mark a turning point in housing supply and regional growth.
Interest rate outlook:
Markets are now tipping a total of 75bps in rate cuts by the end of 2025. While that may be a little optimistic, inflation appears to be tracking in line with Treasury and RBA forecasts. A gently easing labour market is also reflected locally, but Cairns still boasts strong job growth and low unemployment.
Federal Budget: Missed opportunity for small business
The 2025–26 Budget had little to offer from a business perspective. One major disappointment? No extension of the $20,000 Instant Asset Write-Off. From 1 July 2025, this threshold will revert to just $1,000 unless legislation changes — a move likely to curb business spending and impact the 2026 tax year.
And in political news...
The calling of the federal election means Labor’s controversial Division 296 bill — which targeted super balances over $3 million — has officially lapsed. This was expected to be a key revenue raiser and its future now remains uncertain.
Whether you're planning your next investment or simply trying to stay ahead of economic shifts, now’s the time to stay informed. The Cairns Economic Monitor is your guide to what’s ahead.