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Housing Reform Funding Allocation
Financial commitments for housing supply and infrastructure in the 2026-27 Budget.
Primary Sources
Budget 2026–27: tax shake-up and $2b housing push | Australian Broker News
Housing supply and investor tax reforms centre stage ahead of budget News By Mina Martin May 11, 2026 Share This year’s 2026–27 federal budget, to be delivered by Treasurer Jim Chalmers tomorrow night, is shaping up to be one of the biggest in decades. The Albanese government’s fifth budget will feature significant tax changes affecting property and share investors, electric vehicle buyers, and the beneficiaries of hundreds of thousands of discretionary trusts, ABC reported. At the centre is a trio of reforms covering the capital gains tax (CGT) discount, negative gearing, and the taxation of discretionary trusts. The CGT discount is expected to be tied to the rate of inflation, with the government also considering a lower flat discount in the range of 25% to 35%. Options for negative gearing reportedly include scrapping existing settings altogether or capping the number of properties that can be negatively geared, while changes to the treatment of discretionary trusts are also being prepared. Any move that trims after‑tax returns is likely to influence investor borrowing capacity, portfolio strategy, and demand for established housing. Prime Minister Anthony Albanese has framed the reforms as a response to intergenerational pressures in the housing market. “For many young people, they feel like they haven't got a fair crack compared with my generation and the generations beforehand,” Albanese said. Westpac Economics argues that broadening the tax base on housing while easing the burden on labour income could better align the tax mix with fairness objectives for younger cohorts – a shift that could gradually tilt demand towards first‑home buyers and owner‑occupiers. Westpac’s budget preview suggests the broader fiscal backdrop remains constrained, with deficits expected to hover around 1% of GDP. That sets limits on how far the government can go with additional housing incentives without adding to inflation and mortgage rate pressures. $2b for ‘last mile’ infrastructure to support new supply Alongside the tax package, the budget will target the supply side of the housing market with an additional $2 billion over four years for critical enabling infrastructure, supporting the construction of up to 65,000 new homes. Of this, $500 million is reserved for regional Australia, where land releases and new estates have often been delayed by funding gaps. HIA managing director Jocelyn Martin said that “Timely provision of enabling infrastructure is c...
Tonight's federal budget is set to tackle housing inequity. Will it revive the Great Australian Dream for those priced out? - ABC News
In a small room in Brisbane's CBD, dozens of young people are packed in. Most share the same dream, but for now, they are each other's competition.They are all vying for a piece of the river city's competitive property pie.Two of the properties up for grabs are prime pickings for first homebuyers.At the back of the room is 26-year-old real estate agent Matt Taylor.As the bright yellow gavel comes down, he watches two of his clients secure their dream of home ownership.The irony is, it is a dream he also shares that he has struggled to make come true."It's almost like you've been chasing your tail for the last three years," he said."You think you're there, and then you just miss out by that little bit."It's disheartening."Matt Taylor hopes he can purchase a home of his own one day. (ABC News: Glen Armstrong)Mr Taylor said his career did not provide him with any special access or leg-up compared with other first homebuyers; they were all in the same race."I've been to auctions and missed out. There are no discounts or benefits in the industry," he said."At some auctions, you're competing with 20 or 30 people."He still believes in the Great Australian Dream — the concept that has shifted from owning a quarter acre in the suburbs, to just being able to own your own home, full stop — but said it was a matter of stretching and saving to get there."We'd love to have land and a house, but it's probably not realistic," Mr Taylor said.Budget full of 'political risk'People like Matt Taylor are likely on the treasurer's mind as he gears up to deliver tonight's federal budget — one he has admitted contains "a lot of political risk".Jim Chalmers has labelled the housing market and tax system as "broken" and is widely expected to break an election promise by overhauling the 50 per cent capital gains tax (CGT) discount and wind back negative gearing.Those changes are set to be the centrepiece of a budget targeted at young voters like Mr Taylor.Tucked away in the New South Wales Snowy Mountains, sits the town of Cooma 1,300 kilometres away.It's the place Angela and Terry Oliveira call home.They moved to Australia from Singapore 12 years ago in pursuit of their Australian dream, and have been saving for a home ever since.They escaped the grind of city living a few years ago, moving from Sydney to Cooma in a bid to secure home ownership.Angela and Terry Oliveira moved to Australia from Singapore 12 years ago along with their young children. (Supplied)Despite lower prices in ...
Australian federal budget 2026: Treasurer Jim Chalmers announces $2 billion for housing infrastructure to help build 65,000 new homes
Housing will be a central feature of Tuesday’s federal budget, with the government to pump $2 billion into the essential infrastructure needed for new homes.
Federal Budget 2026: Anthony Albanese forced to defend breaking election promises on housing taxes | The Nightly
This includes $2 billion for infrastructure such as sewers, electricity connections, and roads to enable new housing estates, and $500 million to speed up approvals. Another $59.4m will go to helping thousands of young, homeless Australians ... Published 17 hours ago
