Measures to boost supply
The National Housing Accord
This flagship policy – agreed to by all state and territories – aspires to build 1.2 million homes over five years, starting mid-2024. National Cabinet have pledged billions in payments to state, territory and local governments to support delivery of these homes, which is facilitated by a few programs:
New Home Bonus
This $3 billion program incentivises states and territories to build more than their share of the targets listed under the Accord. The Bonus is also intended to incentivise states and territories to undertake the reforms necessary to boost housing supply and increase housing affordability.
Housing Support Program (HSP)
This $1.5 billion funding initiative is designed to help achieve the National Housing Accord's target by streamlining planning and delivery of roads, water and power. There are three streams under the HSP aimed at: improving planning capability, enabling infrastructure and community amenity projects, and a priority works stream which can be utilised for infrastructure or delivering social housing.
Under the HSP, $500 million was made available to state, territory and local governments over 2023–24 to 2025–26. Other parties to the Accord include superannuation funds, institutional investors and asset managers like BlackRock and IFM Investors, and construction industry peak bodies.
According to the National Housing Supply and Affordability Council, which tracks progress towards the Accord’s target, 219,000 new homes were completed during the first 15 months. There had been a 17% increase in quarterly building approvals since the Accord started and at current building rates the Council estimated the 1.2 million homes target would be reached in June 2030 – a year late.
*The Local Infrastructure Fund
As part of the 2026 Federal Budget, the Government announced it would invest an additional $2 billion in the power, roads and drains needed for new housing developments. The Government projected this would help build around 65,000 new homes over a decade.
The funding would establish a new Local Infrastructure Fund as part of the Housing Support Program, to unlock the enabling infrastructure needed to finish housing projects. The funding will be provided to local governments and state utility providers, with $500 million reserved just for regional Australia.
National Housing Accord Facility (NHAF)
Sitting alongside these programs, the Commonwealth has committed $350 million to deliver 10,000 affordable homes. This funding is delivered under the National Housing Accord Facility (NHAF) which is administered by Housing Australia alongside the Housing Australia Future Fund. State and territory governments have agreed to support delivery of another 10,000 affordable homes, bringing the total under the Accord to 20,000.
National Planning Reform Blueprint
In August 2023, all states, territories and the Commonwealth agreed to 10 measures and 17 associated actions that formed the National Planning Reform Blueprint. Designed to help reach the Accord’s targets, this program outlines planning, zoning, land release and other measures to improve housing supply and affordability. In the most recent Progress Summary, delivered March 2025, it was noted significant headway had been made by all jurisdictions, but on-going work was needed. Reforms to address non-planning constraints such as labour and material shortages and access to finance were likely needed if governments were to meet their national housing targets.
National Productivity Fund boosts
In the 2025–26 Budget, the Commonwealth Government committed $120 million from the National Productivity Fund to incentivise states and territories to remove red tape preventing uptake of modern construction methods, with the stated aim of getting homes built faster. In late-2025, Treasury finalised reforms which included allowing skilled labour to work in different states, and prioritising electrical and engineering occupations. Harmonising standards for building and construction material and reforms to increase the uptake of electric heavy vehicles were also included. States that implemented reforms would receive payments from the Fund, which totalled $900 million post-Budget fund injection.
Build to Rent tax incentives
The 2023–24 Federal Budget announced incentives to encourage build-to-rent construction. Tax concessions were refined in Budget 2025–26, with industry estimates suggesting they would support the construction of around 80,000 new rental homes in Australia over the next decade, including 8,000 affordable homes.
Eligible new build-to-rent developments have access to:
- an increased deduction of 4% for capital works
- a concessional final withholding tax rate of 15% on eligible fund payments.
To be eligible, developments must provide 50 or more market rental properties, make at least 10% of dwellings available as affordable homes, and the development must be owned by a single entity for at least 15 years.
Advancing manufacturing of prefabricated and modular homes
In the 2025-26 Budget, the Government invested $54 million to accelerate the uptake of modern methods of construction, including advancing manufacturing of prefabricated and modular homes.
*Establishment of a single-touch process
As part of the 2026 Federal Budget, the Government committed $45 million to speed-up and simplify approvals via a single-touch process. This would fast-track new energy, housing and resources projects by combining federal and state approvals – effectively cutting red tape. Provided a state government had signed a new bilateral approval agreement, that state would be able to conduct assessments and approvals on the Commonwealth’s behalf.
Land release
As part of the National Housing Accord, states and territories have committed to expedite zoning, planning and land release. The Commonwealth is undertaking a whole‑of‑government process to identify surplus Commonwealth land that could be used to support more housing.
Defence is also involved. In February the Commonwealth announced it intended to divest or partly divest of 67 Australian military sites (from rifle ranges and barracks, to training depots and vacant land) identified in an audit as surplus to the Department’s needs.
Helping potential homebuyers
5% Deposit Scheme (formerly the Home Guarantee Scheme)
Running since 2020, the scheme is open to first home buyers and those who haven’t purchased within the last 10 years with a minimum 5% deposit, or single parents/guardians with a minimum 2% deposit. Changes in October 2025 removed income caps, waitlists and requirements for lenders mortgage insurance. Property price caps were also increased. Government data shows as of April 2026, 247,000 Australians bought their first home using the 5% Deposit Scheme under the current government. In total, around 308,000 people have used the Scheme since it commenced in 2020.
Help to Buy Scheme
This shared-equity mortgage program, first proposed in 2022 and launched in late-2025, is designed to help eligible homebuyers get on the property ladder with low deposits (minimum 2%). The scheme is limited to 10,000 places per year and currently scheduled to run for four years. Under Help to Buy, the Commonwealth Government contributes up to 40% of the purchase price for new homes and 30% for existing homes, reducing the deposit and mortgage burden for home buyers. The Scheme is administered by Housing Australia. Budget 2025–26 committed around $800 million to lift the scheme’s previous property price and income caps.
First Home Super Saver Scheme (FHSS)
This ATO-administered scheme helps Australians save a deposit for their first home using their superannuation. Users make voluntary contributions to their super up to $50,000 and release the contributions when buying their first home. Because their deposit is built inside the concessionally taxed superannuation system, it incurs less tax.
100,000 Homes for First Home Buyers
In the runup to the 2025 General Election, the Government pledged to invest $10 billion to build up to 100,000 homes for sale only to first home buyers.
This would comprise $2 billion in grants and $8 billion in zero-interest loans or equity investments primarily to states and territories. States and territories would be required to match the $2 billion Federal Government grant contribution. In January, the Government announced the first deal had been struck with a $801.5 million agreement to unlock about 17,000 new homes for South Australians, including 6877 for first home buyers. Construction of homes would commence in 2026–27 with first home buyers moving in from 2027–28.
*Tax reform
Tax changes delivered as part of the 2026 Federal Budget were expressly designed to help level the playing field for first home buyers. These reforms included limiting negative gearing for residential property to new builds from 1 July 2027. Arrangements would remain unchanged for all existing investments made prior to the Budget. The 50% capital gains tax (CGT) discount would also be replaced with inflation‑adjusted indexation from 1 July 2027, and a minimum tax rate of 30% on realised gains would be introduced. These changes will apply to all assets except new homes, where both new and old arrangements would be available. The new tax will be prospective, with gains accrued on investments prior to 1 July 2027 retaining the 50% discount.
*Ban on foreign investors extended
Also intended as a measure to remove competition from Australians, the Commonwealth Government extended the ban on foreign investors buying existing homes until mid‑2029 as part of the 2026 Federal Budget.
Measures targeting social and affordable housing
The following measures are in addition to allocations for social and affordable housing in wider-focused policies like the National Housing Accord.
Housing Australia Future Fund (HAFF)
This dedicated $10 billion investment from the Australian Government, established in November 2023, is intended to boost social and affordable housing supply. It provides grants and concessional loans to housing providers and projects that build additional homes across Australia. Through the HAFF, Housing Australia works with all levels of government and the community housing, development and finance sectors to support delivery of 20,000 new social homes and 20,000 new affordable homes over five years from 2024. Housing Australia figures show by November 2025, 279 contracts were committed to, supporting 18,650 homes, although only 889 of these had been completed, and 9,501 were under construction.
Another round of funding, which started in late-January, was expected to contribute to the delivery of an additional 21,350 homes.
Social Housing Accelerator
This $2 billion fund, announced in June 2023, aims to provide 4,000 new, refurbished, and acquired social housing dwellings across the country. Funds were distributed to state and territory governments in the same month as the announcement. At mid-2025, Treasury reported almost $618 million had been spent, 1057 social housing dwellings had been delivered, 1666 had been commenced but not completed and 1,528 had been committed but not commenced.
In October 2025, the Government announced the program was set to deliver 4,251 new social homes – exceeding its original target.
Affordable Housing Bond Aggregator (AHBA)
AHBA provides low-cost and longer-term loans to registered community housing providers, supporting more social and affordable housing. This scheme has been expanded, most recently in the 2025–26 Budget, when the Government increased the cap on its guarantee of Housing Australia’s liabilities by $16 billion to a total of $26 billion. This was intended to enable Housing Australia to support delivery of more social and affordable housing under the AHBA and the first two rounds of the HAFF and National Housing Accord.
Measures targeting homelessness
National Agreement on Social Housing and Homelessness (NASHH)
This $9.3 billion agreement between federal, state and territory governments, which began in 2024, will run for 5 years. The Australian Government gives state and territory governments around $1.8 billion each year, including $400 million for homelessness which state and territory governments must match. Funding goes to helping people who are experiencing, or at risk of, homelessness, and supporting Australia’s social housing and homelessness services sectors to operate effectively, with progress assessed against the National Outcomes Framework.
National Housing and Homelessness Plan
This plan is intended to unite efforts to improve housing and homelessness outcomes across the board and will inform future housing and homelessness policy in Australia. Public consultation took place in 2023 and key stakeholders have given feedback. A draft of the Plan is yet to be released.
*Youth Housing Incentive
In the 2026 Budget, the Commonwealth Government announced $59.4 million over four years to supplement rental income for Community Housing Providers delivering social housing to young people aged 16–24 who were at risk of, or experiencing, homelessness. Community housing charges rent based on incomes, but because ABSTUDY and youth allowance are both lower than other income support payments, some housing providers can't afford to rent to young people. This additional fund is intended to close that gap, and benefit over 4000 young people.
Measures targeting rental affordability
These schemes are in addition to those already listed targeting affordable housing and rentals.
Commonwealth Rent Assistance (CRA)
The CRA is an income supplement for low-income private renters. Eligible tenants must qualify for a pension, allowance, or specific rates of Family Tax Benefit, and their rents must exceed certain minimum thresholds applicable to their household type.
Previous AHURI research found Commonwealth Rent Assistance (CRA) is the most expensive demand-side housing support program in Australia, costing the federal government $5.5 billion in the 2023–24 financial year. This sum is expected to surge due to increases in allowances in the 2024–25 Budget and upwards pressure on housing affordability.
A Better Deal for Renters
In August 2023, National Cabinet agreed to A Better Deal for Renters to standardise and strengthen renters' rights across Australia. It comprised nine reform focuses, including removing ‘no grounds’ evictions, bans on soliciting rent bidding, moving towards limiting rental increases to once a year and phasing in minimum rental standards. There have been variable levels of implementation of these reforms between states.
Measures targeting Indigenous and remote housing
First Nations Funding Round under HAFF
There is a dedicated stream within HAFF to improve housing outcomes for Aboriginal and Torres Strait Islander communities, which prioritises community-controlled organisations. In the most recent HAFF funding round, begun in January, the stream included $600m in dedicated funding aimed at delivering social homes for First Nations people.
Remote Housing Partnership Agreements
Signed in mid-2024, the 10-year $4 billion agreement between the Federal and Northern Territory Governments aims to halve overcrowding in Aboriginal communities via construction of up to 2,700 new homes across the Territory. It commits Federal and Territory governments, working with all four NT Land Councils and Aboriginal Housing NT, to improve existing housing and build homes that are culturally appropriate and meet the climate challenges of the NT.
Closing the Gap
Closing the Gap aims to address the divide between the health outcomes and life expectancy of First Nations people and non-Indigenous Australians. The National Agreement on Closing the Gap has 19 national socioeconomic targets across areas that have an impact on life outcomes for First Nations people. Progress against the targets is monitored by the Productivity Commission. Money is allocated under Closing the Gap to areas like developing health systems, remote jobs, traineeships, and short-stay accommodation services, however most funding targeting housing is delivered via other schemes.
The Housing Policy Partnership (HPP)
The HPP was established in December 2022 under Priority Reform One of the National Agreement on Closing the Gap. The Australian Government committed $9.2 million over 3 years to the HPP, starting from 2022–23. It is a forum for Aboriginal and Torres Strait Islander people to have a say in the design and delivery of Aboriginal and Torres Strait Islander housing services.
Measures to boost the construction workforce
*Funding to accelerate skilled migrants' entry into the workforce
The 2026 Federal Budget included $85.2 million in funding to accelerate skills assessments for skilled migrants in trades industries and to better integrate occupation licensing with the assessment process. The Government claimed once implemented, the time taken to enter the workforce could be cut by up to 6 months.
Key Apprenticeship Program
At the start of 2025 the Government announced a Housing Construction Apprenticeship stream under the broader Key Apprenticeship Program. Under this program, from July 2025, eligible apprentices could receive $10,000 in incentive payments on top of their usual wages, paid in instalments over the life of their apprenticeship to work in housing construction.
Fee-Free TAFE Skills Agreement
Fee-Free TAFE launched in 2023, targeting courses in areas of national priority, of which construction was one. A stated objective was boosting tradie numbers to help get more homes built. Through the Fee-Free TAFE Skills Agreement, the Australian Government partnered with state and territory governments to deliver $1.5 billion for over 500,000 Free TAFE and vocational education and training (VET) places across Australia from 2023 to 2026. According to the Department of Employment and Workplace Relations, at 31 December 2025 there had been 245,785 completions since Fee-Free TAFE launched in 2023, of which 21,350 were in construction. The most recent Fee-Free TAFE program quarterly report also recorded 58,705 enrolments in construction courses.
