Government unveils $47bn national housing overhaul

The federal government has unveiled a sweeping $47 billion housing strategy aimed at tackling Australia's worsening affordability crisis, lifting housing supply and reshaping the country's rental, tax and social housing settings over the long term.

Released this week, Homes for Australia: A national plan consolidates national reform agenda spanning supply, rental protections, home ownership and homelessness support.

At the centre of the strategy is an ambitious target to deliver 1.2 million new homes by 2029, alongside Commonwealth-backed support for up to 420,000 homes over the next decade.

The government said the plan responds to decades of structural deterioration in housing affordability, with house prices climbing from around three times average incomes four decades ago to roughly eight times today.

Minister for housing Clare O'Neil said Homes for Australia is the latest initiative from the Albanese government and brings together the progress already made, including the actions taken in the 2027 Federal Budget, into a comprehensive national plan.

"This plan is a chance to take stock, outline the progress so far, and set out a blueprint for the further work needed to build a housing system that works for all Australians," she said.

The strategy places heavy emphasis on increasing housing supply through planning and zoning reform, faster approvals processes and major investment in enabling infrastructure, including transport links, sewerage, utilities and serviced land.

It also seeks to address workforce shortages and productivity constraints in the construction sector through skills development, streamlined building regulations and greater use of prefabricated and modern construction methods.

Alongside supply-side reforms, the plan introduces significant tax changes aimed at redirecting investment toward new housing stock. From 2027, negative gearing will be restricted to newly built housing, while the capital gains tax discount will be replaced with an indexation model.

The government said the changes are designed to encourage investment into housing supply rather than existing dwellings, while helping level the playing field first home buyers.

Support for aspiring homeowners will also be expanded through the 5% Deposit Scheme and the Help to Buy shared equity program, which is expected to support 40,000 households. The plan also commits delivering 100,000 homes reserved for first home buyers.

Renters are another major focus of the strategy, with the government proposing a national "Better Deal for Renters" agenda that includes stronger tenant protections, limits on rent increases, bans on rent bidding and improved minimum rental standards.

The plan also aims to accelerate growth in the build to rent sector and further expand Commonwealth Rent Assistance.

Meanwhile, the government pledged to grow the social and affordable housing sector, targeting 55,000 supported homes over five years, including 40,000 through the Housing Australia Future Fund.

Additional funding will also be directed toward homelessness services, crisis accommodation and First Nations housing, with the plan prioritising community led delivery models and alignment with Closing the Gap objectives.