It’s Federal Budget time, so let’s cut to the chase. What was in it for aspiring homeowners looking to purchase a property in 2025?

Here are some of the key takeaways that could affect you in regards to purchasing property and cost of living reprieve.

Purchasing property

Help to Buy scheme

Labor plans to boost its Help to Buy scheme by increasing income and property price caps. Under the scheme, the Federal Government will provide an equity contribution of up to 40% to support eligible homebuyers (around 40,000 Australians) to purchase a home with a lower deposit and a smaller mortgage.

The income caps will be lifted from $90,000 to $100,000 for individuals, and from $120,000 to $160,000 for joint applicants and single parents.

Infrastructure investment

The Budget has allocated more money to various road and rail infrastructure projects across the country. It’s a good idea to be across these if you’re planning to buy, as they may affect housing development and surrounding property markets.

Examples include:

  • Safety upgrades on the Bruce Highway in Queensland.
  • Critical infrastructure upgrades in the growing Western Sydney region.
  • New South Wales plans for regional projects and to fix notorious choke points, including an upgrade Mona Vale Road and more to reduce travel times on Terrigal Drive.
  • Upgrades to Sunshine Station in Victoria.
  • Westport – Kwinana Freeway Upgrades in Western Australia.

Read the full list here.

Foreign investors banned

The Government announced a temporary ban on foreign purchases of established dwellings for at least two years and said it would crack down on land banking. From 1 April 2025 to 31 March 2027, foreign persons, including temporary residents and foreign-owned companies, cannot buy an established dwelling in Australia unless an exception applies.

The measure is intended to open up more opportunities for local property purchasers.

Prefabricated homes a priority

More funding will be allocated towards the prefabricated and modular housing industry to boost home building. Prefabricated homes are manufactured offsite in a factory, then transported to their final location for assembly. They’re said to take half the time to build as traditional brick and mortar homes.

The Government has also committed funds from the National Productivity Fund to incentivise states and territories to remove red tape preventing the uptake of modern methods of construction.

Incentives for housing construction tradespeople

Labor will introduce a new Housing Construction Apprenticeship stream, offering eligible apprentices in housing construction trades up to $10,000 in financial incentives. This measure is designed to address workforce shortages and boost housing supply.

Cost of living

New tax cuts and Medicare breaks

From 1 July 2026, the 16% tax rate, which applies to taxable income between $18,201 and $45,000, will be reduced to 15%. From 1 July 2027, it will be reduced to 14%.

A worker on average earnings will get an extra $268 in their pocket in the first year, and $536 from the 2027–28 financial year.

The Government will also increase the Medicare levy low-income thresholds. As a result, more than one million Australians on lower incomes will be exempt from paying the Medicare levy or continue to pay a reduced levy rate.

More energy bill relief

The Government will extend energy bill relief to the end of 2025. Every household and around one million small businesses will receive two $75 rebates directly off their electricity bills through to 31 December 2025.

Health

The Government plans to reduce the maximum cost of medicines on the Pharmaceutical Benefits Scheme (PBS) for everyone with a Medicare card and no concession card. From 1 January 2026, the maximum co‑payment will be lowered from $31.60 to $25 per script.

Cutting student debt

The Government will reduce all outstanding Higher Education Loan Program (HELP) and other student debts by 20%, subject to the passage of legislation.

The Government will also increase the amount that people can earn before they have to start paying back their loans ($54,435 in 2024–25 to $67,000 in 2025–26).

Growing wages

The Government intends to ban non-compete clauses for low and middle income employees. This is expected to boost wages, with workers free to move to higher paying jobs. Aged care and childcare workers are set to receive wage increases.

Looking to buy a property?

There’s a lot to digest from the Federal Budget, but we’re here to answer your questions. Get in touch with your Bendigo Broker Hayley if you need clarification about how any of the Federal Budget measures impact your property purchasing goals.

Book an appointment or call 03 4418 3444.