Update The Federal budget and Housing Supply
The 2026 Federal Budget introduces major housing taxation changes. HIA Chief Economist Tim Reardon has commented on the expected impacts for housing supply across Australia.
How will the 2026 Federal Budget affect housing supply in Australia?
Tax changes affecting housing supply could shift project pipelines and workload availability for trades businesses.
Key takeaways
- The 2026 Federal Budget introduces the biggest changes to housing taxation in decades.
- HIA's Chief Economist Tim Reardon has commented on the budget's housing supply impacts.
- The budget's implications for housing supply are becoming clearer this week.
- Structural tax changes are expected to significantly affect the housing sector.
Related
New independent research supports HIA call for lot size reform
New independent research backs HIA's push for lot size planning reforms, suggesting simple policy changes could meaningfully boost housing supply in Australia.
Why it matters: Builders and developers could see more work opportunities if lot size reforms increase housing supply. Changes to planning rules directly affect project viability and land use for residential builders.
HIA calls for urgent reform of Tasmania's Protection Work framework
HIA is urging the Tasmanian Government to overhaul its Protection Work framework, saying the current rules cause project delays, raise costs, and put builders at unfair risk.
Why it matters: Builders in Tasmania face direct impact through project slowdowns and increased financial exposure under the current framework.
80% of builders expect home building to slow after Budget decisions
New home sales fell 4.6% in June, marking a second consecutive monthly decline. Builders are pessimistic about the outlook following recent Budget decisions, with 80% expecting home building activity to slow.
Why it matters: Builders and related trades face fewer new home contracts ahead. Slower housing starts will directly reduce work for plumbers, electricians, and carpenters reliant on new builds.