Federal Treasurer Jim Chalmers has offered a few small glimmers of hope in this year's pre-election budget – though the measures can't be considered sweeping.
With Cyclone Alfred raining on the parade of an April election, the government has been forced to lay out a playbook for the coming financial year.
But in doing so, it risks laying bare its cards to the opposition.
Thus, the Albanese Government may be keeping some housing policies up its sleeve for an election bonanza.
"This budget lifts our commitments in housing to $33 billion, and there's more to come," housing minister Clare O'Neil said on Saturday.
Here's what Australians hoping to break into the housing market can take away from the 2025 federal budget.
Another $800m for Help to Buy scheme
The often-criticised and yet-to-launch Help to Buy shared equity scheme will receive an extra $800 million under the budget.
That brings the government's total equity investment to $6.3 billion.
The scheme will see the government funding a portion of 40,000 Australians' home purchase – a maximum of 30% for existing homes and 40% for new homes.
The funding boost comes as the income and property price caps participants must abide by are lifted:
- Single income threshold lifted from $90,000 to $100,000 a year
- Couples' threshold lifted from $120,000 to $160,000 per year
- Property price caps increased to better reflect median values across the country
Updated Help to Buy property price caps
| Region | New price cap |
|---|---|
| NSW Capital city and regional centre |
$1,300,000* |
| NSW Other |
$800,000 |
| Victoria Capital city and regional centre |
$950,000 |
| Victoria Other |
$650,000 |
| Queensland Capital city and regional centre |
$1,000,000 |
| Queensland Other |
$700,000 |
| Western Australia Capital city |
$850,000 |
| Western Australia Other |
$600,000 |
| South Australia Capital city |
$900,000 |
| South Australia Other |
$500,000 |
| Tasmania Capital city |
$700,000 |
| Tasmania Other |
$550,000 |
| ACT | $1,000,000 |
| Northern Territory | $600,000 |
| Jervis Bay Territory and Norfolk Island | $550,000 |
| Christmas Island and Cocos (Keeling) Islands | $400,000 |
$54m for prefabricated and modular home construction
The government is also investing $49.3 million to help state and territory governments scale up the prefabricated and modular housing industry.
Another $4.7 million is earmarked to fund the creation of a voluntary certification process for offsite construction of housing, which will aim to streamline the approvals process.
The government argues prefabricated and modular housing can slash the time taken to build houses in half, helping it meet its target of building 1.2 million homes by 2029.
Increased investment in these housing types means more prefab and modular homes could hit the market soon.
By boosting supply, this could also ease price pressure – potentially making it more affordable for buyers to enter the market.
While we're on the Housing Accord target, just 45,000 new homes were built in the first quarter of the government's five year plan.
Meanwhile, the first two rounds of the $10 billion Housing Australia Future Fund are expected to aid the provision of 18,000 social and affordable homes.
$4.9m more for Housing Australia
Housing Australia will see its coffers boosted by an extra $4.9 million of funding over the four years from 2025-26 to help run the Home Guarantee Scheme.
The much-used Home Guarantee Scheme includes:
- The First Home Guarantee
- The Regional Home Guarantee, and
- The Family Home Guarantee
Since its inception in 2020, more than 200,000 Australians have used the scheme to enter the property market with as little as 2% deposit and no lenders mortgage insurance (LMI).
Other budget measures
Ban on foreign investors
Other measures in the 2025 budget include a two year ban on foreign investors purchasing existing housing stock, beginning 1 April.
The ban was announced earlier this year and select foreign investors will be exempt, such as those whose purchases will significantly add to housing supply.
Incentives for trade apprentices
Another previously announced measure included in Tuesday's budget is the Housing Construction Apprenticeship stream.
The stream will provide up to $10,000 of incentives for eligible apprentices entering the housing construction industry.
It's intended to encourage more workers into housing construction trades, thereby addressing worker shortages impacting housing supply.
Those employing apprentices in priority occupations might also be eligible for a $5,000 incentive for an additional six months, up to 31 December 2025.
How does this compare to last year's budget? Check out our coverage of the 2024 federal budget for homebuyers.
What else is Labor promising homebuyers on an election win?
Student debt and home loans have been a hot topic this year - and expect more headlines if Labor follows through on one of its key election promises.
HECS debts wiped, boosting borrowing power
The Albanese Government says it will wipe 20% of all student debt if it wins the 2025 election.
For prospective homebuyers, this could significantly improve borrowing power.
By reducing overall liabilities, buyers may be able to take on a larger home loan, helping them gain access to properties that may otherwise be out of reach.
The budget comes after Dr Chalmers urged watchdogs to alter how mortgage lenders are encouraged to assess HECS/HELP debts.
In response, APRA has proposed banks stop treating HECS/HELP loans like other forms of debt and exclude it from serviceability tests if an applicant is expected to repay it within 12 months.
What's the Coalition promising homebuyers on an election win?
Super for housing
In contrast, the Coalition continues to push its super for housing policy, which would allow first home buyers to access 40% of their super balance, up to $50,000, to put toward a deposit.
Critics argue the policy may drive up prices, while supporters claim it gives Australians more control over their retirement savings.
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