Federal Treasurer Jim Chalmers handed down the 2026 Federal Budget on 12 May, with housing once again taking centre stage.
For Australians thinking about building a new home, entering the property market or investing for the future, several key announcements could shape the road ahead.
Here’s a closer look at the changes and what they could mean for your next move.
Changes to negative gearing
One of the biggest housing announcements in this year’s budget was a change to negative gearing rules.
At the moment, property investors can claim losses associated with owning an investment property, including mortgage interest, maintenance, repairs and council rates, against their taxable income.
From July 2027, investors purchasing an existing investment property will no longer be able to claim those deductions against their personal income. Existing property owners, however, will not be impacted by the change.
Importantly, the government has kept negative gearing incentives in place for newly built homes, with the aim of encouraging more housing supply across Australia. Investors who choose to build brand-new homes will still be eligible to access these benefits, provided the property is genuinely new.
For Australians considering property investment, the changes place a stronger focus on building new, creating opportunities for buyers looking to enter or expand within the investment market.
Capital Gains Tax updates
The budget also introduced changes to capital gains tax (CGT) arrangements for investment properties.
Currently, investors who sell a property held for more than 12 months can access a 50% discount on the capital gains tax payable. From July 1, 2027, that structure will change for existing investment properties, with gains instead taxed at an investor’s marginal tax rate and adjusted for inflation.
However, newly built investment properties will continue to receive more favourable treatment. Investors building a new home may still be able to access the current 50% discount or opt for the new inflation-adjusted model, depending on eligibility and which delivers the better outcome.
Together, the changes to negative gearing and CGT are designed to encourage more investment into new housing supply while helping improve affordability for future homebuyers.
Help to Buy remains available
While no major changes were announced to the federal government’s Help to Buy scheme, it continues to provide valuable support for eligible first-home buyers.
Under the scheme, the government can contribute up to 40% of the purchase price for a newly built home, or up to 30% for an existing home. This can help reduce the upfront deposit needed and lower ongoing mortgage repayments.
Participants repay the government’s contribution over time or when the property is eventually sold.
For many Australians looking to get into the market sooner, the scheme could make building a new home more achievable, particularly for buyers navigating rising living costs and affordability pressures.
Funding infrastructure for new communities
Building more homes requires more than just construction. It also relies on the infrastructure that supports growing communities.
To help unlock future housing developments, the government has committed $2 billion towards roads, utilities, transport links and essential services needed for new estates and communities.
The investment is expected to help support the delivery of up to 65,000 homes over the next decade, helping pave the way for the next generation of growing communities across Australia.
Supporting the construction industry
The budget also includes measures aimed at strengthening Australia’s residential construction workforce.
Additional support will be available for trades and small-to-medium construction businesses, including funding to assist with accreditation and training costs.
The Key Apprenticeship Program Employer Incentive has also been extended until June 2029, helping businesses continue bringing new apprentices into the industry and supporting the next generation of skilled trades.
With housing demand remaining high, growing the construction workforce will play an important role in helping deliver more homes across the country.
Smarter, faster home building
The government has also signalled a stronger focus on innovation across the construction industry.
This includes exploring AI-driven tools to streamline planning approvals, reduce red tape and simplify building code processes, all aimed at helping homes move from concept to construction more efficiently.
There is also continued support for prefabricated and modular building methods, which could help speed up delivery and improve productivity across the sector.
As the industry evolves, innovation and smarter building practices will continue to play an important role in meeting Australia’s growing housing needs.
What it means for buyers and investors
The overall message from this year’s budget is clear. Increasing housing supply is a national priority, and new home construction remains a major part of the solution.
For Australians considering building a new home or investment property, the continued incentives around new builds, combined with government investment in infrastructure, workforce growth and innovation, highlight the ongoing value of building new in today’s market.
Whether you’re a first-home buyer, upgrading for more space or exploring investment opportunities, having the right builder by your side can make navigating a changing market far simpler.
Ready to Take the Next Step?
At Metricon, we understand that building a home is one of life’s biggest decisions. Whether you’re building your first home, upgrading for your growing family or exploring investment opportunities, our team is here to help guide you through the journey with confidence.
Explore our range of home designs, visit a display home, or contact us today to discover what’s possible with Metricon.
