Australia Housing Policy 2026-27

Australia's 2026-27 housing policy framework is built around five pillars: an expanded Help to Buy shared equity scheme with higher income and price caps, uncapped First Home Guarantee places with no income limits, a scaled-up Housing Australia Future Fund targeting 40,000 homes by 2029, enhanced Build-to-Rent tax incentives, and a 15% boost to Commonwealth Rent Assistance — the largest single increase in over a decade.

Data in this article is sourced from Budget 2026-27 papers, Housing Australia, Services Australia, and the ATO as at 5 July 2026.

Help to Buy: expanded shared equity

The Help to Buy shared equity scheme was significantly expanded in the 2026-27 Budget with approximately $800 million in additional funding. The government co-purchases up to 40% of the home, reducing the amount the buyer needs to finance.

2026-27 income thresholds (from 1 July 2026)

Single applicants: $103,000 (up from $100,000)
Single parent applicants: $165,000 (up from $160,000)
Joint applicants: $165,000 (up from $160,000)

Property price caps

Caps are set by policy decision, not automatic indexation. The budget expansion is expected to raise caps to approximately:

NSW: $1.4 million range
VIC: $1.0 million range
QLD: $1.0 million range

How it works

Buyer needs a minimum 2% deposit
Government contributes up to 40% of the purchase price
Buyer finances the remaining 60% through a standard mortgage
Buyer can repurchase the government's equity share over time at market value
Home improvement costs above $21,000 (up from $20,000) trigger CSP adjustment

First Home Guarantee: major reforms in effect

The First Home Guarantee (FHG) underwent significant reforms on 1 October 2025, and these remain in effect for 2026-27:

No cap on places: Previously limited to 35,000 per year. Now unlimited.
No income caps: The previous limits of $125,000 for singles and $200,000 for joint applicants have been removed.
Higher property price caps: Adjusted upward from October 2025.

2026 property price caps

Sydney and NSW regional centres: $900,000
Melbourne and VIC regional centres: $800,000
Brisbane: $700,000
QLD regional: $550,000
Perth: $600,000
WA regional: $500,000
Adelaide: $600,000
SA regional: $400,000
Hobart: $600,000
TAS regional: $450,000
ACT: $750,000
NT: $600,000

Eligibility

Australian citizen (not permanent resident)
Aged 18 or over
Must not have previously owned property in Australia (including inherited)
Must live in the property as primary residence
Minimum 5% deposit
Government guarantees the remaining amount to 20% — no LMI payable

The scheme is administered by Housing Australia through 32 participating lenders.

Key difference from Help to Buy

FHG is a government guarantee only — you own 100% of the property. Help to Buy involves the government co-owning up to 40% — you own 60%. FHG requires a 5% deposit; Help to Buy requires only 2%.

Housing Australia Future Fund: Round 3

The HAFF targets 40,000 new social and affordable homes by 2029. The first two rounds committed 279 contracts supporting 18,650 homes (889 completed, 9,501 under construction). Round 3 aims to fund the remaining 21,350 homes through four targeted streams:

First Nations stream: $600 million dedicated funding for Indigenous housing organisations, supported by a new First Nations Concierge Service
Housing Diversity stream: 3,750 dwellings (50% social, 50% affordable), with minimum applications of 200 dwellings in metro areas and 50 in regional areas
State and Territory Government stream: 90% social housing and 10% affordable, with funding delivered from 2027 to June 2029 using fixed availability payments and concessional loans
Partnerships at Scale stream: 8,000 dwellings (90% affordable), minimum 500 and maximum 2,500 dwellings per application, designed for institutional investor partnerships

The application process has been streamlined to a two-stage model with EOI outcomes within about 4 weeks and funding approval within 8-12 weeks on a rolling basis.

National Housing Accord

The Accord target of 1.2 million new homes from 2024 to 2029 is running behind schedule. The federal government is consolidating all social and affordable housing funding products under the single HAFF brand.

Build-to-Rent incentives

Build-to-rent tax incentives target a cumulative 80,000 rental dwellings, with all projects required to offer 5-year leases.

MIT withholding rate reduction: from 30% to 15% for eligible BTR fund payments to foreign residents from information-exchange countries. Applies to rental income, capital gains on dwellings, and capital gains on membership interests, irrespective of construction date.

Accelerated capital works deduction: 4% per annum (versus the standard 2.5%) for BTR construction expenditure where construction commenced after 7:30 PM AEDT 9 May 2023.

Eligibility criteria:

Minimum 50 dwellings
Single ownership for 15 years
Minimum 5-year lease terms (tenants may request shorter)
At least 10% affordable dwellings
Comparable non-affordable dwellings must be at least equal to comparable affordable dwellings

Amended affordability rules from 27 March 2026 require at least 2% of total dwellings to be lower-income, with tenants identified by an eligible community housing provider. A 15-year compliance period applies, with misuse tax for non-compliance.

Commonwealth Rent Assistance: 15% boost

The 15% increase to Commonwealth Rent Assistance maximum rates took effect on 20 March 2026 — the largest single boost to housing support in over a decade. New maximum fortnightly rates:

Single, no children: $212.40 (up from $184.60)
Single sharer: $141.60 (up from $123.00)
Couple, no children: $200.20 (up from $174.00)
Single with 1-2 children: $248.15 (up from $215.80)

Rent Assistance is calculated at 75 cents per dollar of rent above the minimum threshold ($148.60 per fortnight for singles), up to the maximum rate. It is automatically applied to approximately 1.3 million Australians receiving qualifying Centrelink payments, is tax-free, and does not need to be declared as income.

The increase responds to rental vacancy rates hitting historic lows of 0.8% in capital cities like Sydney and Perth. It builds on prior boosts of 15% in September 2023 and 10% in September 2024.

$10 billion First Home Buyer Exclusive Housing program

The 2026-27 Budget introduced a new $10 billion program to deliver 100,000 homes over 10 years, sold exclusively to first home buyers at below-market prices. The first projects are expected to start construction in 2026-27. Details of eligibility and pricing mechanisms are expected to be released during the financial year.

FAQ

What deposit do I need for Help to Buy?

A minimum 2% deposit. The government contributes up to 40% of the purchase price, and you finance the remaining 60%. You can buy back the government's share over time at market value.

Can I use the First Home Guarantee if I am a permanent resident?

No. The First Home Guarantee requires Australian citizenship. Permanent residents are not eligible.

How do I apply for the First Home Guarantee?

Through one of Housing Australia's 32 participating lenders. The scheme is not applied for directly through the government — your lender handles the application as part of the loan process.

What is the difference between Help to Buy and the First Home Guarantee?

Help to Buy involves the government co-owning up to 40% of your home (you own 60%). The First Home Guarantee is a guarantee only — you own 100% of the home and the government guarantees the portion of your loan above 80% LVR so you avoid LMI.

Am I eligible for Commonwealth Rent Assistance?

If you receive a qualifying Centrelink payment (JobSeeker, Age Pension, Family Tax Benefit, etc.), pay private rent above the minimum threshold, and have a formal tenancy agreement, you should automatically receive Rent Assistance.