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The Federal Budget 2026–27 introduced major housing and property measures aimed at improving affordability, increasing housing supply and reshaping investor activity.
The clearest theme across the announcements is the Government’s focus on supporting newly built homes and accelerating new housing supply.
From changes to negative gearing and Capital Gains Tax through to infrastructure funding and faster approvals, the measures may influence how first home buyers, investors and owner occupiers approach the property market over the coming years.
Key takeaways
- Future negative gearing concessions will be limited to newly built homes from 1 July 2027
- The Government is directing policy settings toward increasing new housing supply
- New infrastructure funding and faster approvals are designed to support housing construction
- The measures aim to improve access to home ownership, particularly for First Home Buyers, and reduce investor competition for established homes
- Investor activity may increasingly shift toward newly built homes, off-the-plan apartments and new developments
- Deposit bonds may become increasingly relevant for buyers purchasing property with extended settlement periods
Key housing announcements
- Negative gearing changes for investors – From 1 July 2027, future negative gearing concessions will be limited to newly built homes.. Existing investments will retain current arrangements.
- Capital Gains Tax discount reforms – From 1 July 2027, the way Capital Gains Tax is calculated on investment properties will change. Instead of automatically receiving the current 50% tax discount when selling an asset, tax calculations will be more closely linked to inflation, although some newly built residential properties may still receive more favourable treatment.
- $2 billion infrastructure fund to help increase housing supply – The Government announced a new infrastructure fund designed to support enabling infrastructure for new housing developments across Australia.
This will include a new AI-assisted environmental approvals tool designed to help developers submit and process environmental assessments faster. - Foreign buyer restrictions extended – The temporary ban on foreign buyers purchasing established homes has been extended until mid-2029.
- Minimum tax introduced for discretionary trusts – From 1 July 2028, discretionary trusts will face a new minimum 30% tax rate, which may impact property investors and families holding investment properties in these structures.
What it means for buyers
First home buyers
By directing more investor activity toward newly built homes and increasing housing supply over time, the Government is aiming to create more opportunities for first home buyers, particularly in new developments, apartments and house-and-land communities.
Property investors
For investors, the Budget signals a shift towards newly built properties as buyers reassess their cash flow, tax position and long term investment strategy.
These changes are expected to encourage more investment into new housing supply and construction activity over time.
Owner occupiers
For owner occupiers, the Budget’s housing measures are intended to improve affordability and create more housing choice over time.
Infrastructure funding and housing supply initiatives may help unlock future development opportunities, although market conditions will continue to vary across different regions and property types.
Family trusts (discretionary trusts)
Families and property investors using family trusts (discretionary trusts) may need to review their ownership structures and tax arrangements ahead of the new minimum tax changes coming into effect from 2028.
Developers and the construction sector
The Budget is designed to encourage more construction activity and accelerate new housing supply through infrastructure investment, faster approvals and policy settings favouring newly built homes.
Possible impacts of the Federal Budget housing measures
At a high level, the Government expects these measures to:
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- Encourage investment into new housing supply
- Improve access to home ownership
- Support first home buyer participation
- Shift investor demand toward newly built homes
- Reduce investor competition for established homes
- Support construction and infrastructure activity
- Increase housing availability over time
As with any major housing reform, the long-term impact will depend on how buyers, investors and the broader market respond over the coming years.
Why deposit bonds are becoming more important in changing conditions
While housing policy may evolve, one challenge remains consistent for many property buyers: accessing the upfront deposit needed to secure a property.
As the Federal Budget encourages more activity in newly built homes, off-the-plan apartments and house-and-land packages, deposit bonds may become increasingly relevant for buyers looking to preserve cash flow or equity during the settlement period.
Deposit bonds can help eligible buyers secure property without tying up large cash deposits for months or even years before settlement — particularly in off-the-plan and new development purchases with extended settlement timeframes.
For first home buyers, investors and owner occupiers alike, deposit bonds continue to provide flexibility in a market where timing, liquidity and cash flow remain important.
Summary
The Federal Budget 2026 housing measures signal a clear shift toward supporting newly built homes, new developments and increased housing supply across Australia.
While the long-term impact will take time to unfold, the changes may reshape how first home buyers, investors and owner occupiers approach the market over the coming years.
As demand increasingly moves toward off-the-plan property and newly built homes, flexibility around deposits, cash flow and longer settlement periods may become even more important for buyers navigating changing market conditions.
