How the Budget Affects Property Owners
Last month, the 2025–26 Federal Budget announced several measures that will impact both residential and investment property owners.
Here we look at some of them.
How the budget impacts property investors
- Enhanced rent assistance and rent regulation
The Government has increased maximum rates of Commonwealth Rent Assistance by 45% for approximately 1 million households. Additionally, a framework is being implemented to harmonise and strengthen renters’ rights across Australia, including limiting rental increases to once a year.
- Build to Rent tax concessions
Refinements to the Build to Rent tax concessions have been announced to encourage the construction of new rental homes, including affordable housing. These measures are expected to support the development of around 80,000 new rental homes over the next decade, offering potential opportunities for investors in the rental market.
- Investment in prefabricated and modular housing:
The budget includes $54 million to support the construction of prefabricated and modular homes, which can be built up to 50% faster than traditional homes. This investment aims to accelerate housing supply and could present new opportunities for property investors in this sector.
How the budget impacts home owners
- Expansion of the Help to Buy Program
The Government is committing approximately $800 million to expand the Help to Buy program, aiming to assist more Australians in purchasing homes with lower deposits and smaller mortgages.
This expansion includes increasing property price and income caps to broaden eligibility. In NSW the cap will be $1.3m in metropolitan areas, and $800,000 in regional areas. However, the annual limit of 10,000 participants over four years remains unchanged.
Improving the local property market
- Infrastructure investments
The budget allocates $17.1 billion over ten years to various road and rail infrastructure projects across Australia. These projects are expected to stimulate local economies and could influence housing demand in these regions. Notable investments in New South Wales includes $1 billion for the South West Sydney Rail Extension.
- Foreign investment restrictions
Effective from 1 April 2025, foreign persons, including temporary residents and foreign-owned companies, will be prohibited from purchasing established dwellings for two years. Exceptions apply to investments that significantly increase housing supply or provide housing on a commercial scale, as well as certain worker accommodation by foreign-owned companies. This could create better market conditions for homeowners and investors alike.
Whether it’s managing your investment property, or selling your home, with nearly 50 years in real estate and property management, our experienced and passionate team is constantly looking for new and innovative ways to ensure you get the best outcomes from your property.
This is why we are one of Newcastle’s longest established real estate agencies, so give us a call on
02 4954 8833, send us an email to mail@apnewcastle.com.au or pop into our Cardiff office for a chat.