AFPA has welcomed the Federal Government's proposed change to negative gearing legislation for new housing developments in Australia, outlined in tonight's 2026-27 Budget.
Under the plan, negative gearing will only be available for newly-built homes and grandfathered for current investors holding negatively geared assets, which was previously recommended by AFPA.
AFPA acting Chief Executive Officer Richard Hyett said: "In 2024, we called for this important change to tax concessions on negative gearing to expand the supply of housing as part of a Senate inquiry into Australia's financial regulatory framework and home ownership.
"As we recommended in a submission, this change will help to increase much-needed investment in new housing development in Australia, which will address the shortage of new dwellings and our national housing crisis.
"This reform will boost confidence in the construction sector, drive new investment, and improve housing affordability.
"It will help to increase the use of sustainable timber in new homes and buildings. There are many benefits of using Australian-grown timber for housing, especially as it's a natural, trusted, durable and renewable resource that stores carbon and can be easily repaired.
"The Government could also leverage and achieve its climate goals if this were accompanied by policies that preference Australian timber in new housing."
AFPA also supports the Budget measure to introduce free public access to Australian Standards, which will remove housing and planning red tape, and increase support for modern methods of construction.
"Having free access to these standards will reduce costs to builders, while helping to improve compliance and safety for the building industry," Mr Hyett said.
The allocation of $500 million to implement Environment Protection and Biodiversity Conservation (EPBC) Act reforms is also welcomed, as it will streamline approvals and increase investment in major projects.
This includes $28 million over two years specifically for transitioning forestry to the new arrangements.
"Given the tight timeframes around the new national environmental laws, this funding is critical to provide resourcing to help progress bilateral agreements with states and territories, and reduce red-tape duplication," Mr Hyett said.
"As part of this investment, state and territory governments will be encouraged to prioritise progressing and signing new assessment and bilateral agreements with the Commonwealth, which is critical for Australia's sustainable forestry industry.
"We look forward to working constructively with the Government to ensure certainty for Australia's sixth largest manufacturing sector."
