Federal budget 2025: Missed opportunity to fix housing crunch, industry says

The 2025 federal budget has “missed the mark” to fix Australia’s housing crunch, industry groups say, despite more than $850 million going to housing. 

Treasurer Jim Chalmers confirmed an $800 million boost to the Help to Buy shared equity scheme for first-home buyers and more than $50 million for the pre-fabricated housing industry in Tuesday’s budget. 

The federal government has been under pressure to help home buyers who have faced rising home prices and rents that have climbed to record highs.   

Maiy Azize, spokesperson for community housing coalition Everybody’s Home, said the budget hadn’t delivered solutions to make housing more affordable for everybody.  

“Expanding the Help to Buy scheme may help some, but it will not move the needle on the housing crisis which is affecting millions of Australians,” Ms Azize said.  

“The housing crisis is deepening and hurting more and more Australians. We need a response that matches the scale of the crisis. We need leaders that will take bold leaps forward.” 

REA Group executive manager of economics Angus Moore said housing and rental affordability were extremely challenging at the moment, with both sitting at their worst levels on record. 

Treasurer Jim Chalmers spent more than $850 million on housing in the 2025 budget. Picture: Hilary Wardhaugh/Getty

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“Solving those challenges in a sustainable way over the long term is fundamentally about building more homes,” he said.  

“We’ve seen a lot of focus on that from governments of all levels, which is a great step forward but there’s more to be done.” 

Calls for more home building support 

Home builders have also called for more support at a time when the government wants to accelerate construction but building approval numbers have remained below average. 

Housing Industry Association managing director Jocelyn Martin said the budget had “missed the mark” on addressing important home building reforms.  

“The Albanese government’s fourth federal budget provided a critical juncture to double down and pull out all stops to address the nation’s crippling housing crisis, but, yet again it was a case of focusing on small target solutions,” Ms Martin said.  

Home builders have called on the federal government for more support. Picture: Getty

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“Australia needs to be delivering a quarter of million new homes year-on-year to meet our growing population and put downwards pressure on housing and rental affordability.  

“Instead, we are facing a shortfall of new home delivery in excess of 70,000 year-on-year due to government-induced roadblocks, chronic skills shortages and the outrageous level of taxes and regulatory barriers being imposed on home building and new home buyers.” 

Master Builders chief executive Denita Wawn said the budget should have done more to help home building businesses.  

Over the last decade, construction costs have increased by almost 60%, residential build times by 48% for houses and 60% for apartments, while productivity has declined by 18%, according to Master Builders.  

“Unfortunately, the very businesses who are expected to solve the housing crisis have been left disappointed this evening with minimal support to bring down business costs, incentivise growth, and reduce regulatory barriers,” Ms Wawn said.  

“Overall, the budget has seen some welcome measures to support new entrants but very little for the businesses who employ them and are struggling to keep their doors open.” 

Political backlash

Opposition parties also voiced concerns about the budget and the government’s housing agenda. 

Shadow Treasurer Angus Taylor said housing has never been further out of reach for families and first-home buyers under this government.   

“Despite all their talk on housing, we know Labor will fall far short of their own housing targets, with not a single new additional home having been built under the Housing Australia Future Fund, the Help to Buy scheme, or the Build to Rent scheme,” he said.  

The federal government has been under pressure to address housing and rental affordability nationwide. Picture: Getty

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Australian Greens leader Adam Bandt said the budget didn’t do enough for renters.  

“On housing, the government has fixed some of the problems the Greens have highlighted in the Help to Buy scheme, but there is nothing new for renters, who didn’t even get a mention in the Treasurer’s speech,” he said.  

“An extra 73 cents a day in 15 months’ time won’t do much when your rent has already gone up hundreds of dollars a week,” he said of the new tax cuts and cost-of-living measures announced in the budget.