Homebuyers have been thrown a lifeline in some parts of Australia, as state governments unveil new housing incentives aimed at improving housing affordability.
State and territory governments around the country have unveiled billions of dollars in new spending on housing in their 2025 budgets, including fresh tax discounts and shared equity programs for homebuyers.
But some states have taken a different route, instead announcing new spending on ways to boost home building and increase housing supply.
It comes as home prices sit at peak levels in many parts of the country and continue to rise, while high borrowing costs and cost-of-living pressures add to challenges for buyers.
Australia’s median home price has grown 4.6% over the year to June, up $40,900 over the past 12 months, according to the latest PropTrack Home Price Index.
In Queensland, the recent state budget featured a new home equity scheme allowing Queenslanders to buy their first home worth up to $1 million with just a 2% deposit.
Under the scheme, the government would invest up to 30% equity for new homes and 25% for existing homes worth up to $1 million in both regional and metro areas.
Single people earning up to $150,000 and households with two adults earning up to $225,000 were eligible under the $165 million program.
Registrations have opened, and the scheme will be capped at 1,000 spots.
Additionally, the $30,000 first-home owner grant that was due to expire at the end of the month will be extended to June 2026.
It comes as Brisbane’s median home price grew 8.3% year-on-year in June, while home prices across the rest of Queensland rose 9.2%.
Western Australians will benefit from new housing funding in the state government’s latest budget too, including a new low-deposit loan and more.
The state government has introduced a new, low-deposit loan requiring just a 2% deposit for modular homes being built in WA.
It has set aside $119 million for stamp duty discounts for first-home buyers on both established homes and land purchases for new homes.
It will also invest $210 million for 1,000 shared equity loans in new apartment and townhouse developments across the state.
The new incentives come as Perth’s median home price increased 7.8% in the year to June, while home prices for the rest of WA grew 10.9%.
In Victoria, the government’s budget has extended its stamp duty concessions for off-the-plan apartments, units and townhouses until October 2026.
Under the plan, a Victorian using this concession to buy off-the-plan could pay about $28,000 less stamp duty on a $620,000 apartment, with duty slashed from about $32,000 to about $4,000, according to government estimates.
Melbourne’s median home price was just 1% higher in June than a year ago, while home prices across the rest of Victoria were up 1.2%.
In New South Wales, the state government’s latest budget didn’t come with any new direct support for homebuyers beyond the existing first-home buyer schemes.
But the state’s 2025-26 budget did include some fresh funding for new housing.
It offered a five-year pre-sale finance guarantee allowing the state government to act as a guarantor on housing projects that have been 50% sold and worth up to $1 billion.
The move would allow developers to secure finance quicker, kicking off construction sooner and was expected to fast-track more than 5,000 homes over the next five years.
The NSW budget included other housing investments, including a 50% land tax discount for build-to-rent projects and more than $80 million to speed up planning approvals.
In Sydney, the median home price rose 3.3% YoY in June, while home prices throughout the rest of NSW grew 4.3%.
In the South Australian budget, there weren’t any new direct incentives for homebuyers either.
However, it committed more than $500 million to help deliver over 2,900 new homes across numerous housing developments over the coming years.
It included the Playford Alive East project, Onkaparinga Heights development and the Southwark Master Plan project.
The government also confirmed that its new rent-to-buy affordable housing scheme, announced in May ahead of the budget, would comprise 100 properties that were under construction.
Under the scheme, eligible South Australians would be able to rent a home at a discount to market rent for up to three years after which they could buy the home at a locked-in price.
It comes as the median home price in Adelaide has grown by 9.8% in the year to June, while prices throughout the rest of South Australia have jumped 12.9%.
The latest Tasmanian budget didn’t have any new incentives for homebuyers but committed about $500 million towards funding its existing programs.
It included the extended stamp duty exemptions for first-home buyers, ongoing support for the 2% deposit MyHome scheme, and advances to the state’s goal of delivering 10,000 social and affordable homes by 2032.
It comes as Hobart’s median home price rose 2.3% in the 12 months to June, as the rest of Tasmania saw prices up 3.3%.
In this year’s budget, the Northern Territory extended two of its popular housing grants in a bid to further help homebuyers get ahead.
The HomeGrown Territory grant offers $50,000 to first-home buyers while the FreshStart New Home grant offers $30,000 to existing homeowners, if they buy or build a new home.
Initially these schemes were set to expire this September, but the government has extended the grants by 12 months until 30 September 2026.
Both grants were available to owner-builders and for off-the-plan properties.
Darwin’s median home price has grown by 5.8% in the past year, while prices across the rest of the territory were 1.5% higher.
The Australian Capital Territory government expanded the price caps of its stamp duty concessions in this year’s budget to allow buyers to purchase homes worth up to $1.02 million.
It increased the price thresholds for the Home Buyer Concession scheme, the Pensioner Duty Concession scheme and the Disability Duty Concession scheme.
The ACT’s median home price was up just 0.5% during the year to June.
