Federal Budget 2025–26: Key takeaways for the property sector, super, migration and infrastructure

The Federal Government has handed down the 2025–26 Budget, revealing a forecast deficit of $27.6 billion and a focus on targeted cost-of-living relief, tax changes, and continued infrastructure investment. While no sweeping new housing measures were introduced, several previously announced initiatives and funding boosts have implications for the property, construction, and superannuation sectors.

Housing and construction

The Budget included no major new housing commitments but confirmed funding for previously announced programs:

• Help to Buy expansion: An additional $800 million will be invested to broaden eligibility. Income caps for individuals will rise from $90,000 to $100,000, and for joint applicants and single parents from $120,000 to $160,000. Property price caps will be linked to average house prices in each state and territory.
• Prefabricated and modular construction: $49.3 million will be provided to states and territories to grow the prefab housing sector. An additional $4.7 million will go toward developing a voluntary national certification scheme for offsite construction.
• Red tape reform: $120 million from the National Productivity Fund will incentivise states to remove planning barriers hindering the adoption of modern construction methods.
• Social housing upgrades: $489.4 million will fund upgrades to state-owned social housing, including rooftop solar, energy-efficient lighting, and air-conditioning.
• Construction workforce pipeline: Incentives for housing construction apprentices will double from $5,000 to $10,000 from 1 July 2025.

Superannuation and taxation

Concessional taxation arrangements for super were reaffirmed, with the government allocating more than $55 billion in tax breaks next financial year.

Ben Thompson, CEO of Employment Hero, said the Budget underscored the role of superannuation in national wealth-building.

“The government is putting over $55 billion into concessional tax breaks for super next financial year—that’s a massive investment in helping Australians build long-term wealth,” Mr Thompson said.

“But with that kind of support comes a responsibility to ensure the system is fair, transparent, and actually delivers value to everyone.”

Robert Francis, managing director at eToro Australia, said the changes would benefit investors.

“The change to superannuation taxation is a great step forward for investors because it allows for higher superannuation balances and will encourage workers to put more money into their super,” Mr Francis said.

Migration and student housing

Net overseas migration is forecast to fall to 260,000 in 2025–26 and stabilise at 225,000 from 2026–27. Despite this, the Budget includes no new policies relating to purpose-built student accommodation or visa caps, although the government continues implementing reforms tied to the Universities Accord.

Infrastructure

The Budget allocated $17.1 billion over ten years to road and rail infrastructure projects nationwide, including:

• Queensland: $7.2 billion for Bruce Highway upgrades and $200 million for the Rockhampton Ring Road.
• New South Wales: $1 billion for the South West Sydney Rail Extension and further road upgrades.
• Victoria: $2 billion for Sunshine Station and $1.1 billion for the Western Freeway.
• Western Australia: $350 million for the Kwinana Freeway.
• South Australia: $125 million for the Curtis Road Level Crossing Removal.
• Tasmania: $280 million for the Arthur Highway and Southern Outlet.
• ACT: $50 million for Monaro Highway works.
• Northern Territory: $200 million for duplication of the Stuart Highway.

Broader economy

• Wages and employment: Unemployment is forecast to reach 4.25% in 2024–25 and remain steady, while wage growth is expected to rise to 3.25% by June 2026.
• GDP growth: Forecast at 1.5% for 2024–25 and 2.25% for 2025–26.
• Inflation: Expected to ease to 2.5% in 2024–25.
• Deficits: Ongoing deficits are projected over the next four years, with a cash deficit of $42.1 billion in 2025–26.

Further announcements relating to housing and infrastructure are expected during the upcoming election campaign.