Faith Housing Australia has welcomed key housing measures announced in the 2026–27 Federal Budget, describing the package as a significant step toward broader housing system reform.
The Budget combines major changes to investor tax settings with new investment in housing enabling infrastructure and targeted support for young people at risk of homelessness.
The reforms include changes to negative gearing and capital gains tax arrangements designed to redirect investment toward new housing supply and improve access to home ownership, alongside a new $2 billion Local Infrastructure Fund to unlock housing delivery.
Faith Housing Australia Chair Rob Stokes said the Albanese Government should be recognised for pursuing reform in areas long considered politically difficult.
“Australia should not be a country where the system makes it easier to accumulate multiple investment properties than it is for younger Australians to buy a first home,” Mr Stokes said.
“These reforms begin addressing some of the long-standing distortions of housing policy in a measured and practical way, while continuing to support investment in new housing supply.”
“The Albanese Government deserves credit for being willing to engage with structural reform in the housing system, not simply short-term measures.”
The Government says the reforms will help around 75,000 homeowners into the market over the next decade.
The Budget also includes:
- $2.0 billion for a new Local Infrastructure Fund to support enabling infrastructure linked to housing delivery
- $59.4 million to support more than 4,000 young people at risk of homelessness into community housing
- further investment in home care, residential aged care accommodation and disability participation supports.
Faith Housing Australia CEO Amanda Bailey said the new National Youth Housing Supplement addressed a longstanding structural barrier affecting both community housing providers and young people experiencing homelessness.
“By improving the operating viability of housing young people, this reform better aligns funding settings with housing need and supports more sustainable tenancy pathways,” Ms Bailey said.
“This announcement will make a real difference to FHA members including Mission Australia, The Salvation Army Australia and Uniting in their efforts to support more young people experiencing housing insecurity.”
Ms Bailey said the measure would also strengthen the long-term impact of youth housing projects being delivered through the Housing Australia Future Fund Crisis and Transitional Housing Program.
“We have members delivering important HAFF Crisis and Transitional Housing projects for young people, and operating support like this is critical to ensuring those housing pathways remain viable over the long term,” she said.
Ms Bailey welcomed the Government’s recognition of the role community housing providers and homelessness organisations play in supporting vulnerable young people.
“This reform reflects years of coordinated advocacy across the housing and homelessness sectors. Faith Housing Australia and many of our members have proudly supported both the Everybody’s Home campaign calling for housing tax reform, and the Home Time Campaign advocating for reform to the Youth Housing Penalty,” she said.
Ms Bailey said FHA members were well positioned to help translate the Budget’s reform agenda into housing delivery outcomes.
“Across the country, FHA members are progressing community housing projects, homelessness responses and faith land initiatives that can help deliver more homes in connected communities,” she said.
“With the right policy settings, infrastructure investment and long-term partnerships, the sector is ready to help convert reform momentum into housing outcomes.”
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About us:
About Faith Housing Australia
Faith Housing Australia is the national peak body representing faith-based housing providers, mission-driven landholders and sector partners working across homelessness, social and affordable housing, community services and housing system reform.
FHA works at the intersection of housing, community wellbeing and civic leadership to support practical housing outcomes, unlock underutilised land and strengthen pathways to safe, secure and affordable homes across Australia.
Through policy advocacy, sector collaboration and strategic partnerships, FHA supports members delivering housing and community outcomes across the continuum — from crisis and transitional housing through to long-term social and affordable housing.
Contact details:
Amanda Bailey
CEO, Faith Housing Australia
0429484632