With the 2025 Federal Budget approaching, the property and construction industry has several key priorities that require government attention and support. The following wish list outlines critical areas where strategic budget allocations could strengthen the sector, address housing affordability challenges, and support sustainable development.

Support for the construction industry

The construction industry continues to face significant challenges including rising material costs, labour shortages, and regulatory hurdles. Federal budget measures could include targeted tax incentives for construction businesses, particularly small to medium enterprises, to help offset increasing operational costs. Additionally, funding for vocational training programs focused on construction trades would address the critical skills shortage that is currently hampering project timelines and increasing costs.

Right now, we don’t have enough people to build the number of homes required to get to affordability. An expanded skilled migration program specifically targeting construction professionals is essential to address immediate workforce gaps. The budget could allocate resources to streamline visa processing for qualified tradespeople, engineers, and project managers with construction expertise. Creating dedicated migration pathways with incentives for regional placement would help distribute skilled workers to areas of greatest need while supporting the industry's capacity to deliver on housing and infrastructure targets.

Continue to support First Home Guarantee programs

The First Home Guarantee programs have proven effective in helping thousands of Australians enter the property market. The upcoming budget could not only maintain these programs but expand their scope and funding to account for rising property values. Increasing the property price caps in metropolitan areas and extending the eligibility criteria would ensure that more first-time buyers can benefit from these crucial initiatives as housing affordability remains a significant national challenge.

Budget allocation could also include funding for comprehensive first home buyer education programs to address the knowledge gap that exists among potential buyers. While not all regions of Australia are experiencing affordability crises, many potential first home buyers simply lack awareness of available pathways to homeownership, particularly in more affordable regional areas. A national financial literacy campaign focused on property purchasing, combined with targeted regional information sessions and digital resources, would empower more Australians to navigate the property market successfully. These educational initiatives could highlight alternative entry strategies such as rentvesting, house and land packages in growth corridors, and opportunities in emerging regional centres.

Measures to encourage downsizers

To free up larger family homes and improve housing market efficiency, the budget could introduce stronger incentives for older Australians to downsize. This could include expanding the downsizer superannuation contribution scheme by increasing the contribution limit and lowering the eligible age. Additionally, stamp duty concessions or exemptions specifically targeted at downsizers would remove a significant financial barrier that currently prevents many seniors from moving to more appropriate accommodation.

A more controversial but potentially effective measure would be implementing a progressive land tax system for older Australians living in large homes in high-demand areas. While politically unpopular and requiring careful implementation to protect vulnerable seniors, such a policy could encourage more efficient use of housing stock. This could be coupled with targeted funding for age-appropriate development in established neighbourhoods, allowing older Australians to downsize within their existing communities. Grants for developers who create high-quality, accessible housing options with appropriate amenities in these areas would ensure seniors can maintain their social connections and familiarity with local services while transitioning to more suitable accommodation.

Incentives to encourage green energy

The transition to green energy in residential and commercial buildings represents both an environmental necessity and an economic opportunity. The budget could allocate funding for rebates on solar installations, battery storage systems, and energy-efficient appliances for both new constructions and retrofitting existing properties. Tax incentives for developers who exceed minimum energy efficiency standards would also accelerate the adoption of sustainable building practices across the industry.

While new construction can readily incorporate green technologies, the true challenge lies in retrofitting Australia's millions of existing homes - many of which were built to outdated energy efficiency standards. The budget could prioritise a comprehensive national retrofit program with means-tested subsidies for energy audits, insulation upgrades, window replacements, and efficient HVAC system installations in existing properties. Additional funding could target low-income households and rental properties, where split incentives between landlords and tenants create barriers to energy improvements. Creating specialised training programs for tradespeople to develop expertise in green retrofitting would also address the skills shortage in this rapidly growing sector while creating sustainable employment opportunities.

More support for 1.2 million homes initiative

The ambitious 1.2 million homes initiative requires substantial additional support to meet its targets in the current challenging environment. The budget could include direct funding increases for social and affordable housing components of this program. Further supporting specified areas with streamlined planning approvals and infrastructure contributions in designated growth areas would accelerate delivery timeframes and improve feasibility for developers participating in this crucial housing supply initiative.

A critical funding gap currently threatens the delivery of this ambitious target. Historically, when Australia last got close to delivering this many homes, it was supported by record levels of foreign investment, particularly in high-density developments. The budget could introduce targeted incentives to encourage more foreign investment into high-density residential projects, which would help provide the significant capital injection needed to meet these housing targets. Without addressing this investment shortfall, delivering 1.2 million homes will remain challenging regardless of other policy measures. Streamlined approval processes for foreign investors focusing on build-to-rent and other high-density residential developments could unlock substantial additional funding channels while creating much-needed housing supply in urban centres.

More property managers

The chronic shortage of qualified property managers is affecting both the rental market and property investors. Budget funding could be allocated to specialised training programs and professional development pathways to attract new entrants to this essential profession. Additionally, grants for proptech solutions that improve efficiency in property management would help existing professionals manage larger portfolios, potentially easing pressure on the rental market by improving service delivery and compliance.

Skilled migration pathways specifically targeting experienced property management professionals could be established to address immediate workforce shortages. The budget could include provisions for an expedited visa program for qualified property managers with relevant international experience, particularly from comparable property markets such as the UK, New Zealand, and Canada. Reducing barriers to recognition of overseas qualifications and providing transition support would enable these professionals to quickly integrate into the Australian market. This targeted migration approach would complement domestic training initiatives and provide much-needed relief to an industry struggling to meet growing demand.

Continued infrastructure investment

The expected $1 billion allocation to reserve land for a future rail line linking Western Sydney Airport with south west Sydney suburbs demonstrates the type of forward-thinking infrastructure investment that must continue. The budget could maintain strong commitments to similar transformative projects nationwide, with particular focus on transport connections that unlock new housing supply in growth corridors. Coordination between infrastructure delivery and residential development timelines would maximise the economic benefits of these investments.