Federal Budget 2026-2027: social infrastructure snapshot

• The Federal Government is continuing to roll out an ambitious social and affordable housing agenda, delivering 55,000 social and affordable homes across Australia.
• An additional $2 billion has been committed over four years from 2026-27 for the Housing Support Program – Local Infrastructure Fund. The aim of this program is to provide funding via states and territories to support local governments and state utility providers to expedite the delivery of housing enabling infrastructure. Funding will be contingent on states committing to reforms to improve productivity in the housing sector, including faster and simpler approval processes, releasing more land ready to build homes, and delivering a genuinely national construction code.
• There was no increase in Commonwealth rental assistance for the second budget in a row. However, the Government will provide $59.4 million over four years from 2026-27 to provide states and territories with funding for community housing providers to supplement rental income for social housing for over 4000 eligible young people, aged 16‑24, who are in receipt of the Away from Home rate of Youth Allowance or ABSTUDY and who are at risk of, or experiencing, homelessness.
• This Budget also releases a further $100 million from the Housing Australia Future Fund to improve the quality of housing for First Nations Australians in remote communities.
• NDIS reforms will be unlikely to have a material effect on the SDA sector but could impact day-to-day services for those participants.
• An extra $1.7 billion is to be invested in aged care accommodation to incentivise expansion of existing facilities and create more beds.
• Negative gearing is to be preserved for investors in build to rent assets or investors in government housing programs (possibly including HAFF). Little detail on the scope of these exemptions is available.
• The 60 per cent CGT discount on qualifying affordable housing will also be preserved.
• The negative gearing changes are likely to redirect investor appetite into new builds, which could impact availability for affordable housing projects (such as house and land packages).

The 2026-27 Federal Budget delivers significant changes across the Australian economy – but what do they mean for your business, sector and future planning? Our experts outline the key announcements and what the Budget means for you and your business.