In the federal budget presented on March 25, 2025, the Australian government introduced several initiatives aimed at addressing challenges in the real estate and property market.
1. Expansion of the 'Help to Buy' Scheme
An additional $800 million has been allocated to the 'Help to Buy' program, a shared equity scheme where the government co-purchases homes with buyers. This expansion raises the income eligibility caps to $160,000 for couples, joint applicants, and single parents, and $100,000 for solo buyers without children. Property price caps have also been adjusted, with metropolitan areas in New South Wales set at $1.3 million and regional areas at $800,000.
2. Investment in Prefabricated and Modular Housing
The government has committed $54 million to support the construction of prefabricated and modular homes. This funding aims to accelerate the building process and contribute to the goal of constructing 1.2 million new homes by 2029. The initiative includes streamlining approvals through a national certification process.
3. Temporary Ban on Foreign Purchases of Established Homes
A two-year ban will be imposed on foreign buyers purchasing established dwellings, effective from April 1, 2025. Exceptions will apply for investments that significantly increase housing supply or provide housing for workers. This measure is intended to boost housing availability for Australian residents.
4. Measure to Combat Land Banking
The Australian Taxation Office (ATO) will receive $8.9 million to address land banking by foreign investors, ensuring that vacant land is utilized productively and contributing to housing supply.
5. Support for Apprentices in the Housing Construction Sector
To address labor shortages in home building, the government is offering up to $10,000 to eligible apprentices in the housing construction sector. Employers in key trades can receive up to $5,000 through a Priority Hiring Incentive. Additionally, $161 million is allocated for the Apprenticeship Support Loans scheme, providing means-tested loans to apprentices.
6.Homebuyer Guarantee Programs
An additional $4.9 million has been allocated to extend existing homebuyer guarantee programs, including the First Home Guarantee, which supports eligible buyers in purchasing homes with a deposit as low as 5%.
7. Commonwealth Rental Assistance
Notably, the budget did not include an increase in Commonwealth Rental Assistance, despite rental affordability being at its worst level on record.
These measures reflect the government's multifaceted approach to improving housing affordability, increasing supply, and supporting both buyers and the construction industry.
Sources: Realestate.com.au, Herald Sun, news.com.au, Wikipedia, Alvarez and Marsal, Broker Daily.
