Federal Budget 2025: How Does It Impact Housing in Australia?
Q: Who benefits the most from the 2025 Federal Budget in the housing market?
A: First-home buyers are the biggest winners. The government has allocated $800 million to the Help to Buy shared equity scheme, making it easier for more people to afford a home.
Q: What changes have been made to the Help to Buy scheme?
A: The scheme’s income limits have increased:
- Individuals: From $90,000 to $100,000
- Joint applicants and single parents: From $120,000 to $160,000
- Property price caps have also been raised, giving buyers more options.
However, the scheme is not yet active and will only be available later this year if the government is re-elected.
Q: What support is there for home building?
A: The government is investing $54 million to boost prefabricated and modular home construction, aiming to speed up the building process by up to 50%.
- $49.3 million for state and territory governments to develop the industry.
- $4.7 million for a national certification process to fast-track approvals.
Q: What about homeowners and renters?
A: There is no direct housing support for them, but they will benefit from general cost-of-living measures:
- Tax cuts: A person earning above $45,000 will get an extra $268 tax cut in 2026 and $536 in 2027.
- Energy bill relief: Households will save $150 on power bills through to 2025.
- Healthcare savings: More bulk-billed GP visits and reduced medicine costs ($25 per prescription).
- Student debt relief: A 20% reduction in student debt and a higher repayment threshold for graduates.
Q: How does this budget compare to previous years?
A: Housing funding is lower than last year, but the government highlights that it has spent $33 billion on housing over the past three years.
Q: What is the financial state of the government?
A: The government has recorded a $27.6 billion deficit this year, with a forecasted increase to $42.1 billion next year.