Budget 2025: housing, employment, green materials and decency

ANALYSIS: Housing was always going to be a big deal in the federal budget and there is some much needed support across finance, workforce, policy and innovation. There was also a range of other measures buried in the detailed budget papers that are a welcome reminder that governments can actually use public money to benefit the broader public.

For our economy and society to benefit everyone, we must fix housing. For example, without a safe, secure and affordable home, it’s hard to undertake education or work. Even if TAFE education is free and construction and clean energy jobs are abundant.

The 2024-25 budget measures comprise a massive $33 billion plan to facilitate home ownership, home construction and improving circumstances for renters. Help to Buy will be expanded and rounds one and two of the Housing Australia Future Fund are expected to deliver about 18,000 homes.

The federal government will move to have no-fault evictions eliminated and limits on rent increases to once a year as part of the Better Deal for Renters program. Measures around build to rent are being refined, including mandating requirements around offering tenants five-year leases if build to rent projects access federal BTR incentives.

The budget also included $4.5 billion to the states and territories to help them meet housing targets, and $120 million from the National Productivity Fund for states and territories to remove barriers for modular and prefabricated construction (Check out our event on 1 April on this topic).

In addition, $50 million will be directed towards industry to scale up capacity in modern methods of construction. A further $4.7 million over four years will fund the development of a voluntary certification and rating scheme for prefabricated and modular housing manufacturers.

From 1 April 2025 foreign buyers will face a two year ban on purchasing existing dwellings, with an exemption for investors proposing a purchase that will significantly increase housing supply. Foreign investors purchasing sites will also face new requirements to prevent land banking, to ensure land is developed for housing, rather than held for capital gain.

Funding for homelessness services will double to about $400 million a year and additional $1 billion for the National Housing Infrastructure Facility, to specifically support crisis and transitional accommodation for women and children experiencing domestic violence and for youth experiencing, or at particular risk of, homelessness.

Job mobility and cross border trade licences

For tradies, the disparity between licensing requirements across the states and territories has been a sore point, as it limits their ability to undertake projects across borders. The government is looking to address this, starting the development of a national licensing scheme for electricians. This may set the precedent for further occupational licensing reform, something the Productivity Commission has estimated could increase annual GDP by $10 billion.

In another move, the government said it would ban “non compete” clauses that prevent anyone on salaries below $175,000 from job mobility across other employers.

Green materials

There’s more than $3 billion for green metals manufacturing including a major injection for transitioning aluminium production to renewables, transitioning iron production and supporting the transition of the Whyalla Steelworks.

Attracting foreign investment

A new “front door” will be established to streamline offshore investment and capital coming into the country. Guided by an investor council – the details of which are yet to be released – from September 2025 the front door will act as a single point of entry for priority projects that represent what the budget papers term “transformational proposals”.

More gratuitous acts of good government

Here’s some of the other line items that on our positives list for the 2025/2026 budget:

• $1 million grants for community?based projects to prevent modern slavery
• $11 million to continue efforts to reduce the economic and environmental burden of established feral animals, pests and weeds
• $3.5 million over two years to develop a national food security strategy
• $55.2 million over four years (and $14.1 million per year ongoing) to renew lease arrangements with the Traditional Owners of the jointly managed Booderee, Kakadu, and Ulu?u?Kata Tju?a National Parks
• $212 million over four years (and an additional $50.0 million in 2029–30) to protect more of Australia’s natural environment and to help meet the government’s commitment to protect 30 per cent of Australia’s landmass and territorial waters by 2030
• $70.9 million over two years to increase opportunities for First Nations people, and particularly single carer families, to buy their own home and build intergenerational wealth through a boost to Indigenous Business Australia’s Home Loan Capital Fund
• $50 million over four years to provide access to low?cost products for remote stores, ease cost?of?living pressures and improve food security in remote communities
• $23.9 million over five years from to strengthen the Indigenous Procurement Policy to boost opportunities for First Nations businesses to grow and create jobs
• $842.6 million over six years for the national partnership through the Northern Territory Remote Aboriginal Investment with the Northern Territory government and Aboriginal Peak Organisations Northern Territory. The partnership will support design and delivery of essential services for remote communities including policing, women’s safety, health and education
• $21.4 million over three years from to build a nutrition workforce in remote communities through upskilling store?based First Nations staff
• $11.4 million over four years from to establish or upgrade up to 12 community laundries and maintain and operate them in remote First Nations communities across northern and central Australia, which will help reduce the rate of preventable skin disorders and improve community health
• $17.1 million over four years from to establish the Accessible Australia initiative, to increase accessibility in community spaces across Australia through accessible infrastructure projects at national parks, beaches, and play spaces, as well as fixed and portable Changing Places facilities to enable increased participation
• $17.7 million in for the Bushfire Community Recovery and Resilience Program to support bushfire resilience activities in rural and regional Australia
• $8.6 million in to extend the Revive Live program to support Australian live music venues and festivals showcasing Australian bands and artists. This funding will have a strong focus on activities that improve accessibility and inclusion at live music performances.

From a more critical point of view, the government’s allocation of $6.9 billion in energy bill relief has been seen in some quarters as a missed opportunity to retrofit houses and other dwellings, given the raft of renewable energy systems and low-energy appliances now available on the market, which would permanently lower households’ energy consumption Energy monitoring company Wattwatchers said its services alone could save around $600 for each household.