Gauging Housing Pol(l)icy at the 2025 Federal Election

Housing policy is one of the defining issues of the 2025 Federal Election, shaping debates and influencing voter priorities across the nation. While much of the conversation has focused on the challenges faced by first home buyers – rising prices, affordability, and accessibility – there's another side to the story that deserves attention.

This analysis shifts the focus to the often-overlooked stakeholders: real estate developers, property investors, community housing providers and the construction industry stakeholders. In collaboration with Local and State Government, these groups play a pivotal role in the housing ecosystem, driving supply, innovation, and economic growth.

This article provides a comparative analysis of the key policies put forward by some of the parties at this Federal Election, highlighting the implications for key stakeholders in the real estate sector.

Government-assisted housing supply

• ALP: The Australian Labor Party (ALP) plans to alleviate the housing crisis through its commitment to build 100,000 homes for first home buyers over eight years. The homes will be constructed in collaboration with state developers, potentially offering significant advantages to developers and key construction industry stakeholders, including builders, contractors, and suppliers. The ALP has also pledged substantial funding for the construction of new homes, providing developers with increased confidence and stability when undertaking projects supported by government financial aid. In addition, the ALP has pledged to continue expanding social and affordable housing through the Housing Australia Future Fund (HAFF) if re-elected – a program the Coalition has vowed to abolish.

• Coalition: The Coalition has committed to investing $5 billion in infrastructure projects (such as roads, public transport, and community facilities) to enhance the capacity of select suburban areas in metropolitan cities to support higher-density housing. This is designed to improve accessibility and liveability in these regions as well as provide opportunities for stakeholders within the construction, retail and manufacturing sectors.

While the ALP and Coalition's policies aim to increase housing supply, the Coalition's policies largely rely on the initiative and interest of investors and developers, whereas the ALP's approach emphasises direct government involvement and support to drive housing supply growth.

• Greens: The Greens have promised the establishment of a Government-owned developer which would build affordable homes for both sale and rental purposes. This initiative seeks to offer rental properties with rents capped at levels aligned with average household incomes, while also selling a portion of homes at prices slightly above construction costs. We anticipate that the introduction of a Government-owned developer could heighten competition for land and skilled labour in the construction industry.

Regulatory reform and tax incentives

• ALP: The ALP has announced that it will continue to back Build-to-Rent (BTR) developments with tax incentives on offer for developers. The BTR tax incentives give investors in eligible BTR developments access to an accelerated deduction of 4% for capital works relating to BTR developments and a concessional final withholding tax rate of 15%. These tax models have had success in other developed countries, with developers eager to build these projects. The ALP has also announced that it intends to speed up housing construction by investing ($54m) in the manufacturing of prefabricated and modular homes while also incentivising states to reduce red-tape in housing development. This may deliver significant advantages to developers and stakeholders within the modular housing sector.

• Coalition: The Coalition has announced tax incentives for first home buyers on mortgage repayments. We expect this will indirectly improve financial viability of housing projects by increasing overall affordability in the market. Additionally, the Coalition seeks to incentivise developers by de-regulating the housing and construction sectors. The Coalition intends to do this by committing to a ten-year freeze on the National Construction Code. It also plans to implement measures to address alleged corruption within construction industry unions through the re-establishment of the Australian Building and Construction Commission (ABCC). These initiatives aim to reduce construction costs and strengthen investor confidence.

• Greens: The Greens have campaigned on a platform that targets regulatory reform in the rental space, promising to create a National Renters Protection Authority and introducing rental caps to provide affordable rentals. Simultaneously, the Greens have promised to abolish negative gearing and the capital gains tax discount. It is said that the combined effect of rental regulations and the removal of investment tax incentives in the housing space may deter property investors, including larger-scale and institutional investors.

Foreign investment

ALP & Coalition: Both parties have committed to limiting migration and temporarily prohibiting foreign investors, including foreign-owned companies, from purchasing existing residential properties for a minimum of two years. These policies build upon discussions initiated by the Coalition regarding migration and its impact on increasing housing demand during the current government's term. While reducing migration may lower demand for new housing projects, this could also adversely affect developers focusing on student accommodation, as migrant student numbers are likely to be the first impacted by these measures.

Conclusion

Political parties have introduced policies to address housing supply and accelerate home construction. The ALP emphasises a more active Government role in building homes, encouraging developers to adopt innovative models for affordable housing projects – balancing higher risks with potential rewards for investors and developers. In contrast, the Coalition focuses on empowering the private sector to expand housing supply by reducing barriers for ongoing projects and offering certainty to investors and developers.

A brief comparison of the policies is set out below.