Coalition to scrap Albanese’s housing fund, cap migration on new homes

Net overseas migration would be capped at the number of housing completions and Anthony Albanese’s staple housing programs abolished as part of the Coalition’s response to the 2026-27 budget, set to be delivered by leader Angus Taylor on Thursday. Mr Taylor is expected to front parliament shortly after 7.30pm on Thursday for the customary reply to the Albanese government’s latest budget. In particular, the Coalition is expected to take aim at housing reform measures in budget, including changes to the capital gains tax and negative gearing, which the Opposition has already vowed to repeal. Furthermore, the Coalition is expected to announce it will seek to cap net overseas migration each year at the number of housing completions as part of its four-point plan. The Housing Minister will be expected to present the number of new home completions to parliament each year, with that number then being used to set the ceiling for the following year’s migration numbers. Migration could rise, but only with housing completions. Treasury expects net overseas migration to fall from 295,000 to 245,000 in 2026-27, with government to focus on migrants already in-country and on reforming the points system. The Coalition is also expected to seek to abolish Mr Albanese and Labor’s flagship housing programs, including the Housing Australia Future Fund (HAFF), the Help to Buy scheme, Build to Rent tax incentives, and the New Homes Bonus. The Albanese government aims to build 1.2 million homes by mid-2029, in part through the HAFF, a $10bn federal investment vehicle for social and affordable housing. Mr Taylor said the Coalition’s plan was “a common sense housing plan”. “Australia should only bring in as many people as it can house,” he said. “Under Labor, migration has run miles ahead of housing and that puts pressure on rents, house prices and on every young Australian trying to get ahead. “This is about mass migration running ahead of the homes, roads, hospitals, schools and services Australia can provide.” Mr Taylor said Australians could “see the housing crisis every weekend”. “They see it in the line around the block at rental inspections, they see it when the rent goes up and they see it when young people who have worked hard and saved hard are told the dream of home ownership has moved further out of reach,” he said. “Our plan is straightforward: only bring in who we can house, make homes cheaper to build, and get the roads, water and sewerage in the ground so homes can actually be finished.” “Labor’s answer to the housing crisis is more taxes, more bureaucracy and fewer homes.” The Coalition is also expected to announce a $5bn Housing Infrastructure Fund to unlock up to 400,000 homes by funding critical infrastructure such as water, sewage, road access, and other utilities. The fund would be made available directly to local councils and developers. The National Construction Code, changes to which are already paused until 2029, will also be slashed, while preserving core safety standards. The code is Australia’s primary national regulatory framework, but is blamed for driving up requirements on developers – and, in turn, driving up some costs. It is understood changes to the code could save about $70,000 on the cost of a new home.