The Albanese Government will pour an extra $2 billion into housing infrastructure in Tuesday night’s Budget, promising to help unlock up to 65,000 new homes across Australia.
The funding will go towards critical infrastructure, including roads, water, power, and sewerage projects that governments say are preventing housing developments from getting off the ground.
The new Local Infrastructure Fund will provide money to local governments and state utility providers over four years from 2026-27, with $500 million specifically reserved for regional Australia.
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The government said the investment will support up to 65,000 homes over the next decade and lift its total spending on housing-enabling infrastructure to $6.3 billion since coming to office.
Treasurer Jim Chalmers said boosting housing supply would be a major focus of the budget.
“Building more homes is a big focus of this budget and a big focus of the Albanese Government,” Chalmers said.
“In this budget, we’re investing billions of dollars to build more homes for Australians.
“Right now, it’s too hard for too many Australians to get into their own home and get ahead, and that’s why we’re investing in supply.”
Treasurer Jim Chalmers said boosting housing supply would be a major focus of the Budget. (James Ross & Mick Tsikas/AAP PHOTOS) Credit: AAP
Chalmers said the government was approaching the housing crisis “from every responsible angle”.
“Our housing plan is pro-aspiration, and it’s pro-investment,” he said.
Housing Minister Clare O’Neil said the funding would help address affordability pressures by increasing supply.
“This critical investment will literally lay the foundations for our country to build more homes, because more housing supply means more housing affordability,” O’Neil said.
“Labor’s investing billions in the boring but essential work that unlocks housing supply – the water, power, and sewerage that make new homes and new communities possible.”
Infrastructure Minister Catherine King said the investment would help councils struggling to fund enabling infrastructure needed for developments.
“Funding for roads, power, water, and sewerage will help unlock housing supply,” King said.
“It’s terrific news for local governments, often struggling to get developments off the ground because of lack of funding for this kind of connecting infrastructure.”
Housing affordability and supply are expected to be major focuses of Tuesday night’s federal budget, as the Albanese Government faces growing pressure to balance major spending promises with worsening budget deficits, cost-of-living pressures, and global economic uncertainty.
Chalmers has flagged housing, productivity, and budget sustainability as key priorities, while economists continue warning against measures that could further fuel inflation.
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