Industry bodies welcome spending commitments across both states but flag contributions, tax settings and project cashflow as unresolved pressure points
New South Wales and Queensland have handed down state budgets that property industry groups say provide a stable operating environment for developers, but which stop well short of the structural changes needed to translate a growing approvals pipeline into completed homes.
In New South Wales, the Property Council of Australia said the 2026–27 Budget imposed no new taxes or charges on the property sector, describing the absence of fresh imposts as a meaningful signal to investors and developers making long-term commitments.
"In a challenging economic environment, the certainty offered by this Budget is very welcome," said Katie Stevenson (pictured top, far left), NSW executive director at the Property Council of Australia. "Importantly, there are no new taxes or charges hitting the property sector, and that provides confidence for investors and developers making long-term decisions."
Measures welcomed by the council included the extension of the Pre-Sale Finance Guarantee, adjustments to the foreign investor surcharge for qualifying build-to-rent and retirement living developments, $4.9 million to replace the BASIX sustainability assessment system, and $3 billion over four years for the planning, housing and infrastructure portfolio.
Despite those positives, Stevenson warned that the Budget did not address the underlying feasibility pressures holding back supply. "While this Budget provides welcome stability amidst ongoing global uncertainty, it doesn't yet deliver the step-change needed to turn approvals into homes," she said. "Future reform must focus on addressing the cumulative impact of government taxes, charges and contributions on project viability."
The Property Council renewed its call for infrastructure contributions, including the Housing and Productivity Contribution, to be deferred to the occupation certificate stage rather than levied upfront, arguing the change would materially improve project cashflow and reduce the number of approved developments that stall before construction.
Urban Taskforce Australia chief executive Tom Forrest (pictured top, second from lett) offered a sharper assessment. He said the Budget's own revenue forecasts — pointing to declining returns from stamp duty, land tax and developer contributions — told the real story on housing supply expectations.
While welcoming the additional Pre-Sale Finance Guarantee funding, Forrest said the Budget largely ignored the detailed recommendations his organisation had submitted ahead of its release.
"Far from taking pro-active steps to address the slowdown in the property and housing construction sector, the NSW Budget is, on balance, a lost opportunity for housing supply," he stated.
In Queensland, the Property Council acknowledged infrastructure commitments including the doubling of the Residential Activation Fund and the creation of an Infrastructure Activation Fund, but cautioned that the state's tax settings continued to limit its competitiveness for global capital.
"We need to support, not stifle, the industry that builds Queensland," said Jess Caire (pictured top, second from right), Queensland executive director at the Property Council of Australia. "That means addressing tax settings that continue to penalise Australian-based developers partnering with friendly offshore investors, limiting our ability to bring new capital into the state."
The Queensland Budget projected stamp duty and land tax receipts of $11.5 billion in 2026–27, representing approximately 38.8% of all state taxes — underscoring the sector's outsized contribution to government revenue.
The Real Estate Institute of Queensland welcomed the Budget's overall stability, with chief executive Antonia Mercorella pointing to $12.3 billion in housing-related allocations as evidence of the government's commitment to supply.
"After recent federal Budget changes that have added complexity and uncertainty to housing, we're relieved to see a steady hand on the tiller in Queensland," Mercorella said.
The institute nonetheless identified stamp duty reform as an unresolved priority, noting that stamp duty revenue had been revised down in the 2026–27 figures compared with prior year actuals.
"Stamp duty reform remains a key lever that has yet to be fully pulled," Mercorella said. "It continues to act as a barrier to mobility and home ownership, and we would like to see a pathway toward a more efficient system."
Both states retained the $30,000 First Home Owner Grant, with Queensland also expanding its Boost to Buy shared equity programme by $163 million.
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