Federal Budget 2025: Key Housing Measures Impacting Australians

The Australian Government’s 2025 Federal Budget introduces several initiatives aimed at addressing the nation’s housing challenges. Here’s an overview of the key measures announced.

Expansion of the Help to Buy Scheme

The government has allocated an additional $800 million to the Help to Buy program, increasing its total funding to $6.3 billion.

Key Changes:

• Higher property price and income caps to accommodate more Australians.
• Property price cap increased to $1.3 million in Sydney and other major centers.
• Eligible buyers can receive a government contribution of up to 40% for new builds and 30% for existing homes.
• Aim: Reduce mortgage burdens and improve housing accessibility.

Investment in Prefabricated and Modular Housing

To speed up housing construction, the budget allocates $54 million to prefabricated and modular housing technology.

Breakdown of Funding:

• $49.3 million to support state and territory governments in adopting prefab housing.
• $4.7 million for a national certification process, streamlining approvals.

This initiative aims to halve construction times and help reach the National Housing Accord target of 1.2 million new homes by 2029.

Support for Apprentices in the Construction Sector

To address the skilled labor shortage in the housing sector, the budget introduces increased incentives for apprentices.

Key Measures:

• Increased apprentice payments from $5,000 to $10,000 (effective July 1).
• Employers hiring apprentices in key trades can receive up to $5,000 in additional support.
• $161 million allocated to extend the Apprentice Support Loans scheme.
• $166 million for free TAFE placements in 2025-26 to encourage more workers into the sector.

Ban on Foreign Purchases of Existing Homes

A two-year ban on foreign buyers purchasing existing homes will be implemented to help ease housing affordability for Australians.

Additional Measures

Housing Australia Future Fund (HAFF):

• Increased financial liabilities cap.
• Additional funding for essential infrastructure to support new housing developments.

Financial Support for Renters:

• While the budget focuses on homeownership and construction, direct support for renters remains limited.
• Rental affordability continues to be at its worst level on record.

Conclusion

The 2025 Federal Budget presents a multi-faceted approach to Australia’s housing crisis, focusing on homeownership assistance, construction innovation, and workforce development. While the expansion of the Help to Buy scheme and prefab housing investment are positive steps, the lack of renter support remains a concern.

As the government rolls out these initiatives, their impact on housing supply and affordability will be closely watched. For potential homebuyers, tradies, and industry stakeholders, these policies could shape the market in the coming years.