The 2026–27 Australian Federal Budget delivers large implications for the property and construction sector, with a focus on boosting housing supply, accelerating infrastructure delivery, and reshaping property investment incentives. Key initiatives include a new $2 billion investment fund aimed at unlocking 65,000 new homes through enabling infrastructure, alongside continued investment in major transport and infrastructure projects, including Victoria’s Suburban Rail Loop East.

 

The Budget also introduces reforms to negative gearing and capital gains tax from 1 July 2027, with preferential treatment retained for new residential developments to encourage additional housing supply, while established property investments will face tighter tax settings. Additional funding to streamline environmental approvals, modernise digital systems, support skilled trades, and reduce construction input costs signals a broader government agenda to improve project delivery efficiency and address Australia’s ongoing housing shortage.

 

While APAA supports reforms that improve housing affordability, we continue to advocate for greater support for businesses and the property sector, broader property tax reform, increased skilled labour availability, and measures to address rising construction costs.