The NSW and Queensland 2026–27 state budgets have unveiled new housing measures, including tax breaks, guarantees, and infrastructure spending.
The NSW and Queensland governments have detailed their 2026–27 housing packages, rolling out a mix of construction initiatives, first home buyer (FHB) support, and new funding for infrastructure and social housing.
NSW’s mix of MMC, duty relief, and guarantees
In NSW, the housing centrepiece is a planned modern methods of construction (MMC) innovation facility, which the government wants to deliver in partnership with a private manufacturer.
The government said the proposed facility would produce prefabricated components and modular homes at scale, with the aim of trimming build costs and cutting project timelines.
From 1 July 2026, the state will also abolish the 9 per cent foreign purchaser surcharge duty for eligible large build‑to‑rent and retirement village projects with more than 50 dwellings.
To help community housing providers and smaller developers line up funding, NSW is adding $80 million to its existing $1 billion guarantee scheme.
FHB measures in NSW will largely continue existing policies.
Full transfer duty exemptions remain for purchases up to $800,000, with concessional rates applying up to $1 million.
The government expects around 30,000 additional buyers to benefit in 2026–27, saving an average of $20,400.
A $10,000 payment will also continue to be available for eligible purchasers who buy or build a brand‑new home.
Yet Urban Development Institute of Australia NSW CEO Stuart Ayres said that the budget did not adequately fund infrastructure projects, stating “investment in high-impact infrastructure remained the best way to unlock new homes at scale”.
“The lack of direct investments in supply-side initiatives in this budget will make it harder for us to turn around the housing crisis”, with Ayres further calling for “a greater share of the state’s capital expenditure to go to supporting investment in new homes.”
Builders’ associations took a more favourable view, particularly of the MMC push.
“Although these measures are modest, they build on existing reforms aimed at increasing housing supply,” NSW Housing Industry Association executive director Brad Armitage said.
“Facilitating the use of prefabrication and modern methods of construction will foster greater innovation in the sector and assist with enhancing productivity.”
Qld budget includes infrastructure, social housing, and first buyer measures
Meanwhile, Queensland’s budget focused more on enabling works and social housing while locking in expanded support for FHBs.
The Residential Activation Fund’s second round has been doubled to $1 billion, with the program used to fund the construction of core services such as water, sewerage, and power, so that land can be converted into sites ready for housing.
Alongside that, $50 million has been set aside for 2026–27 under a broader funding deal worth more than $2 billion between the state and Commonwealth.
This will fast‑track trunk infrastructure within Priority Development Areas, with the government saying the package is expected to unlock 51,000 homes, including 20,000 reserved for FHBs.
Queensland has also committed $5.73 billion over four years to address structural supply shortages, supporting the construction pipeline for the 6,500 homes already underway and backing a longer‑term goal of 53,500 social and community dwellings by 2044.
Complete stamp duty exemptions for those who purchase or construct a brand‑new home were also locked into legislation.
The $30,000 First Home Owner Grant is being extended for an additional four years, at an estimated cost of $62.5 million to $72 million, with eligibility capped at newly built properties valued at $1 million or less.
Real Estate Institute of Queensland CEO Antonia Mercorella welcomed the breadth of Queensland’s housing spend.
“After recent Federal Budget changes that have added complexity and uncertainty to housing, we’re relieved to see a steady hand on the tiller in Queensland, with $12.3 billion allocated across housing initiatives,” Mercorella said.
“This is a Budget that’s doubling down on housing with substantial funding directed toward supply, social housing, and first home buyer support.”
Yet Mercorella said the government had missed an opportunity to provide greater support to FHBs across the state.
“There’s room to expand the First Home Owner Grant to include established housing – to better reflect how the market operates across much of Queensland, particularly in regional areas where new supply is limited,” she said.
“Stamp duty reform remains a key lever that has yet to be fully pulled. It continues to act as a barrier to mobility and home ownership, and we would like to see a pathway toward a more efficient system.”
[Related: NSW government expands Pre-sale Finance Guarantee scheme]
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