Under the Help to Buy scheme announced in Federal Budget 2025, Sydney, Brisbane, and ACT property caps have been increased by a whopping 30%. For those in Sydney, the increase announced is from $950,000 to $1,250,000. This could be the tipping point which can help migrants get into their first home.
This reality check by the government is indicative of the high property prices in Australia, especially Sydney where the median house price is $1.65 million. Under this scheme the Commonwealth will give equity contribution of 30% of the purchase price of an existing home and an equity contribution of 40% of the purchase prices in helping buy a new home.
This measure, if passed by Parliament, will go a long way in helping new migrants secure their first home in Australia.
Budget 2025 was a budget which the Albanese government was not really ready to hand down, but the devastating typhoon in Queensland delayed the call to the 2025 Federal elections. That the Prime Minister had started pulling ahead of the Peter Dutton Coalition in the polls may also have had something also to do with pushing back the poll date to May.
And like all pre-election budgets, this one’s focussed on getting the government elected rather than on major long-term plans to realign the Australian economy to the new world order under President Trump and beyond. Being delivered by Labor it has all the ingredients of focussing on housing, childcare, medical and other social initiates.
Summary of key measures
- All taxpayers will receive modest tax cuts starting 1 July 2026.
- Eligible Australian households and small businesses will receive an additional energy rebate of $150.
- The general co-payment for Pharmaceutical Benefits Scheme medicines will reduce to $25 for individuals who do not hold a concession card.
- All families will be eligible for at least 72 hours per fortnight (three days per week) of subsidised childcare without having to satisfy the activity test.
- Concessions will be applied to reduce student debts and repayments.
- The ‘Help to Buy’ program will be expanded to include higher income and property price caps.
Help to Buy
The Help to Buy scheme will be of great interest to new migrants.
More people will be eligible for the Government’s shared equity Help to Buy program, with an increase to the income caps and the price caps for properties. For singles, the income cap will increase from $90,000 to $100,000. For joint applicants (and single parents), the income cap will increase from $120,000 to $160,000.
Property price caps
| Region | Current price cap | New price cap | ||||
| NSW – capital city / regional centre | $950,000 | $1,300,000 | ||||
| NSW – other | $750,000 | $800,000 | ||||
| VIC – capital city | $850,000 | $950,000 | ||||
| VIC – other | $650,000 | $650,000 | ||||
| QLD – capital city | $700,000 | $1,000,000 | ||||
| QLD – other | $550,000 | $700,000 | ||||
| WA – capital city | $600,000 | $850,000 | ||||
| WA – other | $450,000 | $600,000 | ||||
| SA – capital city | $600,000 | $900,000 | ||||
| SA – other | $450,000 | $500,000 | ||||
| TAS – capital city | $600,000 | $700,000 | ||||
| TAS – other | $450,000 | $550,000 | ||||
| ACT | $750,000 | $1,000,000 | ||||
| NT | $600,000 | $600,000 | ||||
| Jervis Bay Territory / Norfolk Island | $550,000 | $550,000 | ||||
| Christmas Island / Cocos (Keeling) Islands | $400,000 | $400,000 | ||||
The scheme assists eligible individuals with the purchase of a principal place of residence. It is open to a maximum of 10,000 places each year over four years, with places proportionally allocated to each participating State or Territory based on population size. The Commonwealth will provide an equity contribution up to 30% of the purchase price of an existing home and up to 40% of the purchase price of a new home.
Those looking at flow-on effects of Federal Budget 2025 to various asset classes, economist Dr Shane Oliver of AMP has this to say:
- Cash and term deposits Cash and deposit returns have likely peaked with RBA cutting rates – the Budget may keep them higher than otherwise.
- Bonds Medium-term deficits put upward pressure on bond yields, but they are roughly as expected so there is not much in it.
- Shares The Budget is positive for spending and hence retail shares, but this may be offset by higher than otherwise rates. Some manufacturers may benefit from subsidies. Overall, it looks neutral for shares.
- Property The housing measures are unlikely to alter the home price outlook. We see modest home price growth this year.
- The $A The Budget is unlikely to change the direction for the $A.
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