Last updated: 12 May 2026
2026-27 Budget · Renters
What renters get from the 2026-27 Budget
The 2026-27 Federal Budget delivers four things directly for renters: an ongoing higher Commonwealth Rent Assistance (up over 50% since March 2022), strengthened tax settings for build-to-rent development (industry estimates 80,000 new BTR homes over a decade), $59.4 million in additional social housing income for at-risk young people, and Treasury's assessment that the negative gearing reforms will add less than $2 per week to median rents.
The big numbers
+50%
CRA increase since March 2022
After four consecutive increases + indexation
1.4m
Australians on CRA
Largest renter income support measure
80,000
BTR homes estimated over a decade
Industry estimate; 1,200 affordable in near term
Will the negative gearing reforms push my rent up?
This is the biggest single question for renters – and Treasury addresses it directly in Box 4.4 of Statement 4. The modelled rent impact from the negative gearing and CGT reforms is less than $2 per week for a median-rent household. For comparison: the 2023 and 2024 CRA increases added over $20 per week for an eligible single renter.
The reasoning: the tax changes exempt new builds, channelling investor capital toward fresh supply. Combined with the $2 billion Local Infrastructure Fund unlocking up to 65,000 homes and the BTR affordability changes adding rental stock, the net effect on rents over time should be downward pressure, not upward.
A Better Deal for Renters
The Commonwealth continues working with states and territories through A Better Deal for Renters to harmonise renters' rights. A separate pilot is investigating whether the Consumer Data Right and Digital ID can let renters share verified information more securely in rental applications, reducing the data-collection sprawl that currently accompanies an application.
For renters thinking about buying
The Budget's biggest single delivery for renters is the first-home-buyer package: Treasury models 75,000 additional owner-occupiers over the next decade, around $19,000 lower price at the national median, and continued operation of the expanded First Home Guarantee, FHSS and Help to Buy schemes. If buying is on the radar, that's where the headline numbers land.
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Related reading
- Build-to-rent: 80,000 new rental homes planned
- What the Budget means for first home buyers
- $2 billion Local Infrastructure Fund for housing supply
Frequently asked questions
Will rents go up because of the negative gearing changes?
Treasury modelling estimates the negative gearing and CGT reforms will lift rents by less than $2 per week for a household paying the median rent. For context, recent Commonwealth Rent Assistance increases have added over $20 per week for eligible recipients.
How much is Commonwealth Rent Assistance now?
Maximum CRA rates are now over 50% higher than in March 2022 after four consecutive increases plus regular indexation. Around 1.4 million Australians receive CRA. Your exact rate depends on your circumstances – check Services Australia for current amounts.
Will I be able to rent in build-to-rent buildings?
Yes – BTR is institutionally-managed long-term rental housing. Industry estimates the federal tax measures (with strengthened affordability standards in this Budget) will support 80,000 new BTR homes over the decade, including up to 1,200 affordable homes in the near term.
What about renters' rights?
Tenancy law is state-based, but the Commonwealth continues to work with states under A Better Deal for Renters to harmonise and strengthen renters' rights. The Budget also pilots a Consumer Data Right and Digital ID use case for safer, faster rental applications.
I'm under 25 and at risk of homelessness – is there new help?
The Budget provides $59.4 million over four years to supplement rental income for Community Housing Providers delivering social housing to over 4,000 young people aged 16-24 at risk of, or experiencing, homelessness.
Source: Budget Paper No. 1, Statement 1 (page 15) and Statement 4 (Box 4.4), Australian Treasury, 12 May 2026.
Disclaimer: This information is general in nature and does not constitute financial, legal, or tax advice. Calculations are estimates only and may not reflect your exact circumstances. Eligibility criteria and dollar amounts may change without notice. Always verify with the relevant government authority, your mortgage broker, or a licensed financial adviser before making decisions.