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As the election cycle ramps up, many were expecting housing, cost of living, and SMEs to play a strong role in the 2025–26 federal budget.
This is exactly the stance the Albanese government took in handing down the budget. As reported by Broker Daily, there were plenty of announcements to help get Aussies into homes, reduce the inflated cost of living, and support the nation’s crucial SME sector.
There was plenty to welcome in the budget. To read the major announcements affecting brokers, click here.
Below are some of the wins and losses from this year’s release:
Housing
As expected, housing had key role in this year’s federal budget. There were a variety of introductions to help boost the sector.
The Help to Buy changes were welcomed by REA Group executive manager of economics, Angus Moore.
“Saving up a deposit can be a real constraint to home ownership. The Help to Buy scheme will allow some first-home buyers to purchase sooner than they otherwise might,” Moore said.
HIA managing director Jocelyn Martin also welcomed the Help to Buy changes but also said it isn’t enough to “shift the dial on addressing the two-decade long housing challenges the industry faces.”
She labelled the budget a “missed opportunity to deliver a concrete housing plan.”
“The Albanese government’s fourth federal budget provided a critical juncture to double down and pull out all stops to address the nation’s crippling housing crisis, but, yet again it was a case of focusing on small target solutions,“ said Martin.
“It was pleasing to see boosting housing supply as one of the key policy areas for this budget, but the policies announced have missed the mark on addressing the key structural reforms needed.”
One major criticism was the shortfalls in reaching the National Housing Accord’s targets. She said there need to be 250,000 homes delivered each year to reach this target, which Australia doesn’t have the ability to do presently.
“All levels of government have been warned extensively on these key issues and that ‘business as usual’ won’t cut it, yet this federal budget again delivered a same, same response to addressing the issues,” Martin said.
“If we are to meet the national target of 1.2 million new homes over five years we need much deeper and significant reforms.”
Despite housing featuring predominantly in the budget, many organisations were not happy with the announcements.
The restrictions placed on foreign investors were addressed by the HIA and Property Council of Australia (PCA). Each group said the reforms should be eased to encourage investor activity to cater to a growing population.
“One in ten detached housing built in Australia are built by an overseas owned builder. These global home builders bring to Australia an investment in leading edge building technologies and products. Penalising these businesses and making it harder for them to build new homes in Australia can only lead to fewer new homes being built,” said HIA chief economist Tim Reardon.
PCA CEO Mike Zorbas said this investment was necessary for “industrial hubs, commercial buildings and new housing communities, which Australians need to create opportunities and to support their daily lives, will need increasing institutional investment from overseas.”
However, Zorbas also commended the government for continuing to push towards meeting housing targets.
“Putting housing and planning in context for the last three years, the government deserves a solid tick for continuing housing targets, rewarding planning reform across industrial, commercial and residential property projects and build-to-rent investment reforms that unlock 80,000 homes,” he said.
Simply put, Moore said that “improving affordability has to be about supply.” With the construction of new homes seeing a renewed focus from government, there are hopes the housing crisis can be mellowed through development.
MFAA CEO Anja Pannek said that the association will be working alongside members to provide information on changes to housing legislation so brokers are better able to support clients.
Further, Connective's executive director Mark Haron said brokers need to stay informed and uphold communication with clients.
“The expansion of the Help to Buy Scheme is a step in the right direction, and will assist more buyers by lowering deposit hurdles, while higher income caps make the scheme accessible to more individuals, couples and families," said Haron.
“Further support through the First Home Guarantee and Regional First Home Buyer Guarantee also addresses one of the biggest barriers to entry: saving for a deposit. At a time when cost-of-living pressures and high interest rates are impacting household budgets, having more financial flexibility can make a significant difference for buyers. These measures offer more options for those who might otherwise struggle to enter the market.
SMEs
Our nation’s vital small businesses also saw some attention in this year’s budget. There was a relief policy in the form of energy rebates and a focus on promoting cyber security.
However, CPA Australia CEO Chris Freeland said the policy “lacks ambition” and won’t be enough to support these struggling businesses.
“SMEs – many of which have thin margins – needed a Budget that would significantly alleviate the cost pressures they face every day. The unrelenting rise in insurance premiums and the burden of utility bills, materials, wages, fuel and various other inflationary pressures are hard to manage,” he said.
“Though the emphasis on relieving pressures on household finances was expected, a more business-centric budget would have benefited all Australians because small businesses are significant contributors to the economy and job creation.”
Others were happier with the announcements, as Australian Banking Association (ABA) CEO Anna Bligh said the “modest” additions will provide both short and long-term support for Australia’s small businesses.
“There are modest measures to support small businesses and these build on the banking sector’s focus on ensuring they can get the credit they need to grow and prosper,” she said.
While there are certainly positives and negatives to draw from the budget, would the grass be greener with a Coalition government? According to CreditorWatch chief economist Ivan Colhoun, not for SMEs.
“The extent to which the measures are implemented will depend on whether the Government is re-elected or not. The Opposition has signalled cuts to public service staffing levels of over 41,000, which will not be helpful, especially to ACT businesses, and there may be more spending cuts announced,” he said.
“The Shadow Treasurer said last night he would not support these tax cuts; reading between the lines, perhaps the opposition is also planning to announce tax cuts either in tonight’s budget reply speech or during the election campaign.”
One important piece missing from the budget was the instant asset write-off. Pannek said it was a missed opportunity for SMEs that this support wasn’t included.
“The feedback we have had from our commercial and asset finance broker members is that the instant asset write-off is important and something they value. A permanent scheme will provide certainty to our members and their small business clients,” Pannek said.
This budget was an important one for the Albanese government as it’s the last one before the May election. There still hasn’t been a date set, but the reactions from this budget are likely to shape outcome of the election.
