Despite the department’s warning, Jim Chalmers remains firm in his assertion that Labor can accomplish the goal of building 1.2 million new homes. | Housing

Treasurer Jim Chalmers maintains that Labor is committed to building 1.2 million new homes by 2030, despite his department warning that current federal government policies won’t achieve this goal. He described housing shortages as a significant challenge for the Australian economy, but downplayed advice suggesting that increasing taxes would be necessary to make the budget more sustainable. This advice appeared in an unredacted version of an incoming brief given to Chalmers after the election, which was accidentally released to the public through a Freedom of Information request. The Treasurer acknowledged the need for increased effort to reach the target, citing various investments and strategies but accepting that more will be needed. Industry experts and research indicate that Labor may not meet its target, with historical construction rates falling short of what is required. Labor’s pre-election commitments included a pledge to invest $10 billion to build 100,000 homes and expand the first home buyer deposit scheme. Additionally, changes in tax settings and restrictions on foreign buyers are part of the government’s strategy. Chalmers stated that addressing budget deficits through increased productivity, lower spending, and some tax hikes is a priority, with an upcoming productivity roundtable focusing on resilience and sustainability. The full brief remains confidential, with sensitive information from public servants not made public.

Source: https://www.theguardian.com/australia-news/2025/jul/14/jim-chalmers-defends-labor-housing-targets-after-treasury-briefing-information-released-to-abc