Federal Budget 2025: Key Housing Initiatives

2 Apr 2025 Posted By: Porter Matthews Metro

The Federal Government’s 2025-26 Budget introduces measures to improve housing supply and affordability. Here are the key takeaways:

Faster Home Construction

  • $54M allocated to boost prefabricated and modular home construction.
  • $49.3M to help states fast-track these builds.
  • $4.7M for a voluntary national certification process to streamline approvals.
  • $120M to remove red tape slowing modern construction methods.

Help for First Home Buyers

  • Higher income caps for the Help to Buy scheme:
    • Individuals: $90K → $100K
    • Joint applicants/single parents: $120K → $160K
  • Property price limits increased in WA:
    • Perth: $600K → $850K
    • Regional areas: $450K → $600K
  • Government to co-own up to 40% of new homes and 30% of existing homes to lower mortgage costs.
  • Scheme expected to assist 10,000 buyers per year for four years, launching later in 2025.

Restrictions on Foreign Buyers

  • Foreign buyers banned from purchasing existing homes for two years (from April 2025).
  • $8.9M allocated to prevent land banking by foreign investors.

Social & Affordable Housing

  • $10B Housing Australia Fund to deliver 18,000 social & affordable homes.
  • $1B for crisis housing for women, children, and at-risk youth.
  • $9.3M for homelessness support and social housing maintenance.
  • $6.2M to leading homelessness organisations over three years.

Energy Bill Relief

  • From 1 July 2025, every household and one million small businesses will get $150 in energy rebates, credited quarterly to electricity bills.

Source: https://reiwa.com.au/news/federal-budget-2025-housing-initiatives/

 

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