2025-26 Federal Budget: Major Reforms to Shape Australia's Real Estate Market
The 2025-26 Federal Budget prioritizes housing affordability and supply, with a $33 billion plan to build 1.2 million new homes by 2030. A key initiative is the expansion of the Help to Buy scheme, increasing funding from $5.5 billion to $6.3 billion. The scheme allows eligible first-home buyers to purchase with just a 2% deposit, with the government contributing up to 40% equity for new homes and 30% for existing properties. Income and price caps have also been raised, making homeownership more accessible in both urban and regional areas.
To speed up construction, $54 million is allocated to modern building techniques, such as prefabricated and modular housing, which could reduce costs and timelines. The budget also tackles labour shortages with a $10,000 incentive for tradie apprentices and an extended Priority Hiring Incentive to encourage more skilled workers into the industry. These measures aim to boost supply and improve affordability in the long term.
A major policy shift is the two-year ban on foreign investors purchasing established homes, ensuring that investment is directed toward new housing development rather than competing with local buyers for existing properties. The government has allocated $5.7 million to the ATO to enforce this ban and $8.9 million to crack down on land banking, discouraging speculative property holding and encouraging faster development of vacant land.
The budget also extends the instant asset write-off for small businesses, indirectly supporting real estate professionals by enabling property-related businesses to claim deductions more easily. Additionally, the $150 quarterly electricity rebate will provide financial relief to households, potentially freeing up more funds for mortgage repayments or home purchases. Overall, the budget aims to balance short-term affordability measures with long-term housing supply solutions.
