Budget in Reply 2025-2026: the Federal Opposition's approach to social and affordable housing
The Federal Opposition has outlined its response to the 2025-2026 Federal Budget, pledging to wind back some of the Government’s core measures regarding social and affordable housing, including the abolishing of the Housing Australia Future Fund, while focusing on unlocking development supply through civil infrastructure investment.
Housing Australia Future Fund
A significant development in the Budget in Reply surrounds the Opposition’s decision to abolish the $10 billion Housing Australia Future Fund (HAFF). The fund is currently in the process of awarding Round 2 projects to the States and Territories so it remains to be seen if these projects would be impacted or allowed to proceed. The removal of this fund would remove the Commonwealth’s current primary source of increasing supply of social and affordable housing stock across the country.
Expediting construction works
In place of the HAFF, the Opposition has allocated $5 billion in grants or concessional loans to fund essential enabling infrastructure – such as roads, sewage, water and electricity – to greenfield housing development sites with the expectation that it will allow constructions delays to be alleviated and enable an estimated 500,000 homes to be completed more quickly. It is unclear who will be the recipients of this funding, but it could be a mix of States, local government or potentially developers (if they are responsible for this infrastructure) and will be provided on a ‘use it or lose it ‘ basis.
Other key housing takeaways
- There will be a freeze on changes to the National Construction Code for 10 years.
- First home buyers will be enabled to utilise up to $50,000 of their super funds to put towards a deposit.
- In line with the Government’s policy, the Opposition has pledged to limit foreign investors and temporary residents from purchasing existing homes for a period of two years.
- The intake of foreign students at metropolitan universities would be limited, along with an increase to the student visa fee applied to foreign students who switch providers. The Opposition has estimated that these migration measures will make up to 40,000 homes available within a year, and approximately 100,000 over a five-year period.
It is anticipated that both major parties will make further announcements pertaining to social and affordable housing throughout the ensuing election campaign.
See our article on last week’s federal budget and its impact on social and affordable housing.
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