The Treasurer Jim Chalmers released another Federal Budget this week and one of the biggest challenges facing him was implementing measures to improve housing affordability and supply.
$33 Billion Committed to Building 1.2 Million Homes by 2030
All in all, there is $33 billion that has been allocated by the government with the express goal to build 1.2 million new homes by 2030.
The big winners out of the funding announcements are first-home buyers, who will receive over $800 million in extra funding for the Help to Buy shared equity scheme, a program that with this extra funding boost has a cost of $6.3 billion.
Help to Buy Scheme Expanded for First-Home Buyers
The scheme’s aim is to reduce the time it takes for first-home buyers to save a deposit and help them own their first property sooner.
The new funding will:
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Lift eligibility income caps from $90,000 to $100,000 for individuals and from $120,000 to $160,000 for couples and single parents
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Increase property price caps, tailored to both metro and regional markets
The government predicts an extra 40,000 first-home buyers will now be able to benefit from the scheme.
REA Group’s Angus Moore told realestate.com the expanded scheme makes the program more accessible to a wider group of buyers.
“The higher price thresholds will mean a lot more homes are eligible for the scheme than previously, and higher income bands will also expand availability to more first-time buyers than before.”
Boosting Construction with Prefab Housing and Apprenticeships
The Federal Government is also spending $54 million on prefabricated and modular housing—homes built in factories rather than onsite—to cut construction delays and boost supply quickly.
Housing Minister Clare O’Neil said:
“We’ve got a big goal to build 1.2 million new homes in five years and to reach that we need to build homes in new ways – using methods like prefab we can build homes up to 50 percent faster.”
To support this initiative, the government is:
Offering $10,000 incentive payments through the Key Apprenticeship Program
Extending the Priority Hiring Incentive payment to support employers in hiring and training new apprentices
Clamping Down on Foreign Investment and Land Banking
To reduce pressure on housing supply, the Budget introduces measures to limit foreign investment and combat land banking:
A two-year ban on foreign investors buying established homes in Australia (excluding investments that increase supply)
Nearly $9 million in funding for ATO investigations into vacant landowners, especially foreign investors
The aim is to ensure unused land is developed for housing within a reasonable timeframe, ensuring available land contributes to housing supply.
