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The Coalition has announced a range of housing policies in its reply to the federal budget 2026-2027 in a bid to rebalance housing supply and demand.
On Thursday evening (14 May), Opposition Leader Angus Taylor put forward pledges to “reward hard work, restore home ownership, secure Australia’s future and put Australians first”.
Under this plan, the Coalition has said it would set the annual ceiling for net overseas migration by the number of new dwellings completed.
To do this, the Coalition proposes that, each year, the Minister for Housing would report to Parliament on the number of new homes completed.
That number will then set the ceiling for net overseas migration in the following year.
Taylor commented: “Never again will a government be able to bring in more people than our housing can support…
"Given the magnitude of people coming in under Labor, immigration will need to be significantly below our cap in the first few years of a Coalition government.
“We must allow the housing market to catch up."
He argued that since Labor took office, 1.4 million people have arrived in Australia (equivalent to the population of Adelaide) accounting for 80 per cent of the nation’s population growth and allegedly contributing to a 400,000-home shortfall.
Furthermore, the Coalition has committed to reserving specific home ownership schemes, such as the 5% Deposit Scheme, for Australian citizens and removing various taxes that it states contribute to the rising cost of construction materials.
The Budget Reply also includes a pledge to deliver a $5 billion investment in a Housing Infrastructure Fund to facilitate the construction of 400,000 homes by funding the connection to essential services, such as sewage, water and power. This is $3 billion more than the government committed in its latest budget.
On top of this, the Coalition has pledged to reduce the length and complexity of the National Construction Code in the hopes of lowering building costs and accelerating new supply, as well as scrapping the “ineffective” Housing Australia Future Fund and Build-to-Rent “tax breaks for multinationals”.
Reacting to the Albanese Government’s commitment to reform negative gearing and capital gains tax, Taylor said the Coalition would scrap this agenda, suggesting the reforms were “an assault on aspiration” and “an attack on the wealth creation that benefits us all”.
“Labor’s negative gearing changes will hand over housing investment to multinationals and foreign pension funds,” he said on Thursday evening.
“Labor’s increase to the capital gains tax will discourage the investment Australia needs to grow…
“[T]he Coalition will fight like hell to prevent Labor’s toxic taxes from becoming law.
“But if they do, I commit that a Coalition government I lead will repeal them,” he said.
Expanding the IAWO to $50,000
The Coalition also used its Budget Reply to outline that it would increase the instant asset write-off to $50,000 (up from $20,000) and make it permanent.
Should the Coalition come into power, it said that any business with a turnover of less than $10 million would be able to immediately deduct assets costing up to $50,000, on a permanent basis.
“This will help tradies buy tools, farmers buy equipment, cafes upgrade kitchens, and small businesses invest with confidence. When a builder buys a ute, they can do more jobs, take on a new apprentice and grow their business," Taylor said on Thursday.
“98 per cent of Australian businesses are small businesses. When a small business invests, it grows. When small business grows, Australia grows.
“This policy is a practical down payment on the Coalition’s plan to restore investment, lift productivity, grow wages and rebuild prosperity,” Taylor said.
Overall, the Budget Reply focuses on seven key measures
- Tax Back Guarantee: The Coalition would index the bottom two income tax thresholds to inflation from 2028-29, followed by the top two thresholds from 2031-32.
- Migration and Housing Pledge: Net overseas migration would be capped annually at the total number of new home completions recorded in the prior year.
- Putting “Australians First”: Access to the NDIS and 17 welfare payments would restricted to Australian citizens only, with existing recipients grandfathered.
- Future Generations Fund: Eighty cents of every dollar from resource revenue would be diverted into a fund to reduce national debt and finance infrastructure.
- Fuel Security Plan: The Safeguard Mechanism would be abolished and $800 million allocated to increase national fuel storage capacity.
- Boosting Small Business Investment: A permanent $50,000 instant asset write-off would be established for businesses with an annual turnover of less than $10 million.
- Strengthening Australia’s Security: A National Security Strategy is developed and defence spending is increased to at least 3% of GDP.
Taylor outlined: “I want to tell you about my vision for a fairer, freer, and better Australia for all.
“An Australia where life is affordable.
“An Australia where we have cheap and abundant energy.
“An Australia where industries thrive and businesses boom.
“An Australia where we innovate, make, and build things of ambition – and farm, mine, and drill with determination.
“An Australia where a single income earner – on an ordinary wage – has enough for a home deposit and to pay off a mortgage steadily.
“An Australia where a mum or a dad can afford to take time away from work to do the most worthwhile thing in life – raise a child.
“An Australia where those we welcome to our shores are all determined to embrace our values, to work hard, to contribute to this nation, to become Australian.
“An Australia where we have confidence in our nation’s future.
“An Australia where we have hope.
“This isn’t the Australia we know today. But we have known it. And we can know it again.
“We can restore our standard of living and protect our way of life.”
The Leader of the Opposition concluded by saying the Coalition’s plan was about "letting Australians keep more of what they earn, restoring the dream of home ownership, backing small business, securing our fuel supplies and putting Australians first".
“Labor’s Budget was one of broken promises, higher taxes, more debt, fewer homes and lower living standards” Taylor said.
“The Coalition’s Plan is about lower costs, more homes, stronger borders, secure energy and a fair go for Australians who work hard, save hard and want to get ahead.
“Government does not grow the economy, private enterprise does. The job of government is to get the big things right, get off people’s backs and back Australians to build, invest, work and succeed.
“We will restore Australians’ standard of living and protect our way of life.”
[Related: Budget a win for SMEs, but warnings raised over tax changes]
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