Budget Bill passes Senate, housing supply to suffer

25 June 2026

The Federal Government’s Budget legislation that will negatively impact housing supply today passed the Senate prior to final approval by the House of Representatives.

Master Builders Australia CEO Denita Wawn said that passage of the Bill through the Senate, and ultimately the lower house, marked a stark disconnect between parts of the parliament and the building and construction industry.

“The incredibly negative public reaction to this year’s Federal Budget is well deserved. The tax hikes and broken promises have sent shock waves through the building and construction industry and the small business sector.

“At the same time as the Government may be feeling some satisfaction at getting its Bill through the Senate, builders and tradespeople right around Australia are trying to manage the uncertainty and instability that has been foisted upon both current and future projects,” Ms Wawn said.

“Based on the ambitious National Housing Accord Targets, many were expecting the Government’s Federal Budget to turbocharge new housing supply, instead they’re sending it backwards.

“The consequences of today’s vote will be felt in the months and years ahead as projects find it harder to reach the level of feasibility required to break ground,” said Ms Wawn.

These tax hikes on housing via the Capital Gains Tax and Negative Gearing will have a detrimental impact on housing supply, construction jobs, GDP and rents, as independent modelling has revealed.

Media contact: Dylan Hafey, Media Advisor

0497 330 064 | dylan.hafey@masterbuilders.com.au