Federal Budget 2025–26
Housing Sector Highlights

Treasurer Jim Chalmers has delivered the 2025–26 Federal Budget, projecting a $42.1 billion deficit, or 1.5% of GDP, for the financial year. This is an improvement from earlier forecasts, following a $27.6 billion deficit in 2024-25. While the Budget is lighter on new initiatives, several measures are poised to influence the strata, property, and housing sectors in both direct and indirect ways.

Housing affordability and demand stimulus

The Help to Buy shared equity scheme will receive an additional $800 million, increasing total funding and expanding access through higher income thresholds and property price caps. For Sydney, the increased cap to $1.3 million allows more apartments—especially in inner-city and well-connected suburbs—to fall within the scheme’s scope.

This change is expected to stimulate demand for strata-titled apartments, particularly those available off-the-plan, which are eligible under the scheme. While it won’t solve affordability alone, it provides a significant lever for aspiring first home buyers and developers alike.

Separately, a two-year ban on foreign ownership of existing homes will commence from 1 April 2025. The measure aims to ease pressure on local housing markets and is backed by additional ATO funding for enforcement. This may redirect foreign interest toward new apartment builds, potentially improving off-the-plan uptake.

Support for construction and trades

To address construction sector labour shortages, the Government will double the maximum incentives for housing construction apprentices—from $5,000 to $10,000—effective 1 July 2025. Nearly 40,000 Free TAFE enrolments in construction-related courses have been recorded to date, with further support expected as Free TAFE becomes a permanent fixture.

The Budget also invests $54 million to scale up the adoption of modern construction methods, including prefabricated and modular housing, which are particularly relevant to mid-rise, urban strata developments.

Social and affordable housing

The Government has reiterated its commitment to building 1.2 million well-located homes over five years, including 55,000 social and affordable dwellings. These will be delivered via programs such as the Housing Australia Future Fund and the Social Housing Accelerator.

Infrastructure support for new housing

To unlock land supply and support these homes, $4.5 billion will be distributed to states and territories. This includes $3 billion in New Homes Bonus payments and $1.5 billion through the Housing Support Program, both aimed at enabling infrastructure such as roads, water, and utilities.

Outlook for the strata sector

With a clear focus on affordability, workforce development, innovation in construction, and enabling infrastructure, the Budget sets a constructive foundation for the ongoing expansion of medium and high-density living across Australia.

These measures could increase momentum in the strata sector—particularly in markets like NSW, where growth, density, and demand converge. Developers, strata managers, and investors are all encouraged to monitor policy details closely as the May Federal Election approaches and further clarifications are expected.

Find out more at budget.gov.au

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26 March 2025