Federal budget 2025: Key measures that could affect your home buying plans.

The 2025-26 Federal Budget introduced a suite of housing and cost-of-living measures designed to shape Australia’s property landscape.

Below is a concise overview of the changes and the outcomes they aim to achieve—so you know what’s coming and how it might influence your plans to purchase in 2025.

1. Help-to-Buy scheme expansion

What’s changing:

• Government equity contribution increased to up to 40% of a home’s purchase price.
• Income caps raised to $100,000 for individuals and $160,000 for joint applicants and single parents.
• Property price caps lifted (region-specific limits to be confirmed).

Intended outcome:

• Reduce the deposit hurdle and mortgage size for eligible buyers, making homeownership more accessible to around 40,000 Australians.

2. Major infrastructure investment ($17.1 billion)

Key allocations:

• $7.2B for safety works on Queensland’s Bruce Highway
• $2.3B for road and rail upgrades in western Sydney
• $465M for regional choke-point fixes in NSW (e.g. Mona Vale Road)
• $2B to modernise Sunshine Station (VIC)
• $350M for Westport-Kwinana Freeway upgrades (WA)

Intended outcome:

• Support new housing development and improve connectivity—factors that can influence supply, demand and, ultimately, local property values.

3. Temporary ban on foreign purchases (Apr 2025 - Mar 2027)

What’s changing:

• Foreign persons—including temporary residents and foreign-owned entities—will be prohibited from buying established dwellings (exceptions apply).

Intended outcome:

• Free up more existing homes for Australian buyers and discourage land-banking, easing competition in the resale market.

4. Prefabricated & modular housing support

What’s changing:

• $54 million to grow the prefab housing sector.
• $120 million in incentives for states/territories to cut regulatory barriers.

Intended outcome:

• Accelerate build times and increase supply by making off-site construction more viable and efficient.

5. Apprentice incentives for housing trades

What’s changing:

• New “Housing Construction Apprenticeship” stream with up to $10,000 incentives for carpentry, plumbing, electrical and similar trades.

Intended outcome:

• Address trade skill shortages, so more builders and tradies are available to complete new home projects on time.

6. Cost-of-Living measures (Indirect deposit support)

• Tax-bracket cuts: 16% to 15% (from 1 July 2026) to 14% (from 1 July 2027), delivering an extra ~$268-536 for average earners.
• Medicare levy relief: Higher low-income thresholds exempt more than 1 million Australians.
• Energy rebates: Two $75 off-bill credits per household/small business until 31 Dec 2025.
• PBS co-payment cap: Reduced from $31.60 to $25 per script (from 1 Jan 2026).
• HELP debt cut: One-off 20% reduction (pending legislation) plus higher repayment threshold ($67,000 from 2025-26).
• Workplace reforms: Ban on non-compete clauses for low/mid-income roles; wage increases for care workers.

Intended outcome:

• Ease everyday expenses so you can allocate more of your income towards costs of living support or a home deposit.

Next Steps

Before you act on any of these measures, it’s wise to:

1. Check your eligibility against the updated Help-to-Buy criteria.
2. Map infrastructure plans in your target area to spot emerging opportunities.
3. Explore prefab builders if you need a faster build.
4. Factor in cost-of-living changes when reviewing your savings strategy.

As always, speak to us first to understand the borrowing impacts and the acceptability of any property or location before making a decision.

We’re here to help you interpret these budget changes and chart the best path to homeownership in 2025.