Why the 2026 Federal Budget Could Make Building a New Home More Attractive

Australia's housing market continues to be a major focus of the Federal Government, and the 2026 Budget introduces a range of initiatives aimed at increasing the supply of new homes while making home ownership more accessible.

With demand for housing remaining high, the government has prioritised policies that encourage new residential construction, particularly to support first home buyers and growing communities.

Investing in Housing Growth

A key Budget announcement is a $2 billion investment in enabling infrastructure, including roads, water, sewerage, electricity and other essential services needed to unlock new residential developments.

This funding is expected to accelerate housing delivery and support the construction of around 65,000 new homes, helping to ease supply shortages and create more opportunities for Australians looking to build.

Why Building May Be More Appealing

The government's housing strategy places a strong emphasis on increasing new housing stock rather than relying solely on existing homes.

Along with infrastructure funding, the Budget outlines measures to improve planning processes and encourage faster housing delivery. These initiatives are expected to:

Increase the release of residential land in key growth areas.
Improve infrastructure within emerging communities.
Support employment across the building and construction sector.

For buyers, this could mean greater access to land and more opportunities to build in well-planned, expanding neighbourhoods.

Continued Support for First Home Buyers

The Budget also maintains support for eligible first home buyers through initiatives such as the 5% Deposit Scheme, allowing qualifying purchasers to enter the market with a smaller deposit while avoiding Lenders Mortgage Insurance (LMI).

Programs like these are designed to reduce some of the barriers that often prevent buyers from purchasing their first home sooner.

What It Means for Investors

For property investors, the proposed Budget measures continue to recognise investment in new housing.

Under the proposed changes, investors may be able to choose between the existing 50% Capital Gains Tax (CGT) discount or a new indexation-based calculation if it results in a lower tax outcome. The intention is to encourage greater investment in newly built homes and increase overall housing supply.

As with all tax matters, investors should seek independent financial and taxation advice to understand how these proposed changes may apply to their individual circumstances.

The Bottom Line

Whether you're buying your first home, upgrading or investing, the 2026 Federal Budget places a clear emphasis on supporting new home construction.

With continued infrastructure investment, assistance for eligible buyers and policies aimed at boosting housing supply, building a new home may offer greater opportunities than ever before.

If you're considering your next move, speaking with a finance specialist can help you understand your borrowing options and determine the best pathway to home ownership or investment.

Complete by McDonald Jones offers a range of turnkey homes across some of New South Wales' most desirable communities, whether you're ready to move now or planning for the future.

Disclaimer: The information above is general in nature and is based on measures announced in the 2026 Federal Budget. Budget announcements are proposals only and remain subject to legislation, Treasury drafting and Parliamentary approval. This article is provided for general information and does not constitute financial, investment or taxation advice. Independent professional advice should be obtained before making any property or financial decisions.