Federal Budget 2025-2026

Australia is facing a significant housing shortage, with many Australians struggling to find affordable homes. To address this, the Government has unveiled an ambitious plan to build 1.2 million new homes over the next five years. Central to this initiative is the National Housing Accord, a collaboration between all levels of government, industry, and investors to unlock housing supply and improve affordability.

The 1.2 Million Homes Target

The Government aims to build 1.2 million well-located homes over the next five years. Nearly 45,000 new homes were completed in the first quarter of the Accord, with the pace set to increase. The plan focuses on building homes in accessible areas with good infrastructure to improve living conditions nationwide.

Fast-Tracking Housing Development

To build homes quickly, the Government is investing $1.5 billion through the Housing Support Program and offering $4.5 billion in incentives for states to tackle infrastructure backlogs. The Housing Australia Future Fund (HAFF) and the Social Housing Accelerator will deliver 55,000 social and affordable homes, with 18,000 homes expected in the first rounds.

Expanding Help to Buy

To help more Australians enter the property market, the Help to Buy program will be expanded. The Government is committing $800 million to increase eligibility, allowing eligible buyers to secure a home with a lower deposit and smaller mortgage. This expansion will help around 40,000 households achieve homeownership.

Addressing Foreign Buyers and Land Banking

From 1 April 2025, foreign buyers will be banned from purchasing established homes for two years, freeing up properties for local buyers. The Government will also allocate $5.7 million to enforce the ban and address land banking, ensuring vacant land is used productively.

Supporting Renters and Homelessness Services

The Government is increasing Commonwealth Rent Assistance by 45% for 1 million households and is implementing policies to improve renters' rights, including limiting rental increases to once a year. In addition, $9.3 billion will be allocated to combat homelessness, providing crisis support and maintaining social housing.

Boosting the Construction Workforce

To meet the ambitious housing target, the Government will introduce the Housing Construction Apprenticeship stream, offering up to $10,000 in incentives for apprentices in construction trades. This will address sector shortages and ensure the workforce can meet demand.

A Comprehensive Approach

With initiatives to build more homes, expand homeownership opportunities, support renters, and boost the construction workforce, the Government's plan for 1.2 million new homes offers a long-term solution to Australia’s housing challenges. Through collaboration and targeted investment, this plan aims to make housing more affordable and accessible for all Australians.