Why New Home Builders Are the Winners of the 2026 Federal Budget

The number of new homes being built in Australia has steadily increased over the last five years, and the 2026 Federal Budget makes one thing clear: the government wants to keep that momentum going. 

Prime Minister Anthony Albanese has made housing supply a major priority, with a strong focus on helping younger Australians enter the property market through the construction of new homes. 

To support this goal, the government has committed $2 billion towards infrastructure projects including roads, power, water, sewerage, and other essential services designed to accelerate housing development. The investment is expected to support the construction of 65,000 new homes—a net gain of approximately 30,000 additional houses.
 

Why Is Now the Best Time to Build? 

A major theme of the budget is encouraging the construction of new homes while reducing some of the benefits of purchasing established properties. 

Alongside the $2 billion infrastructure fund, the government has also announced support for faster planning approvals and large-scale housing construction targets. Over the next four years, this is expected to: 

• Drive more land releases in growth corridors.
• Improve infrastructure in emerging suburbs. 
• And increased employment opportunities within the construction industry. 

For buyers, this will create more opportunities to secure land in developing communities. 

The budget also continues support for initiatives such as the 5% Deposit Scheme, which is designed to help eligible first home buyers enter the market sooner with a smaller upfront deposit. 

For investors, you retain existing tax benefits while also having the opportunity to choose the new method if it gives you a better tax outcome. This means you can either have the existing 50% CGT discount, or the new indexation method with the minimum tax. This is a deliberate incentive to direct investment towards building new homes.

Final Thoughts 
The property market is always evolving, and government policy is just one part of the picture. What matters most is understanding your own situation and finding the approach that feels right for you.

If you’ve been considering buying or building, the recent changes may be a prompt to start exploring your options in more detail.
For first home buyers, the combination of housing initiatives, infrastructure spending, and low-deposit schemes is designed to make entering the market more achievable. For investors, the policy direction increasingly favours new construction over established property purchases. 

While the landscape will continue to shift, one thing remains consistent-with the right advice and a clear plan, getting into your own home is still very much within reach.