$100m plan to use AI to speed up housing

Housing reforms are tipped to be a key measure of the federal budget. (Getty: Andrew Merry) An AI tool to help housing developers get projects through the Commonwealth's environmental assessment process will be funded in Tuesday's federal budget. The measure is among a suite of changes expected to fundamentally reshape Australia's housing market. The federal budget will be handed down on Tuesday evening. Link copiedShareShare articleArtificial intelligence will be recruited to speed up assessments of housing and energy projects waiting for environmental approval, as the government races to build more homes and ward off a key frustration turning voters away from the major parties. Tuesday's federal budget will include a $105.9 million commitment over four years to develop an AI tool to guide proponents and share environmental data that will get more projects approved. A half-billion-dollar package to implement environmental reforms that were passed last year also includes about $250 million to establish the National Environmental Protection Agency. The commitment is the latest housing measure flagged for the federal budget, which is set to reshape Australia's housing market. Treasurer Jim Chalmers said the AI assistance would bring on more supply. "Our big productivity push is all about getting compliance costs down and cutting red tape, making it easier and faster to build, and making Australia a more attractive place to invest," Mr Chalmers said. "This is a big investment that will make our economy more productive and will help to get crucial projects going in housing, energy and critical minerals." The government had already established a "strike team" to whittle down the backlog of homes awaiting approval, an effort the environment minister says has approved more than 20,000 homes since August last year, and will meet its target of 26,000 approvals by July. Yesterday, the treasurer announced a $2 billion commitment to support a further 65,000 homes being built by funding the roads, water, power and sewage connections necessary for new lots to be opened. And tax changes to be confirmed on Tuesday will wind back two major tax breaks for housing investors: the discount to taxes on capital gains, such as property sales, and the income tax deduction available to housing investors known as "negative gearing". Labor's massive success at the 2025 federal election has given it the electoral cushion to attempt to break the back of a political issue that has dragged voters away from the major parties over successive elections. Both the Greens and One Nation have drawn voter support over the issue of housing and property values rising beyond affordability, particularly for young people and first-home buyers. Pauline Hanson says the major parties "will lose" because of an "arrogant" belief that One Nation is not able to become a mainstream force, following the party's first lower house win this century. Following the Liberal loss to One Nation in the Farrer by-election, Shadow Housing Minister Andrew Bragg said the major parties were getting what they deserved. "We are where we deserve to be, over the last 10 years we haven't done enough policy work, and I think the generation of millennials, my generation, are pretty dirty on the major parties and with good reason," Senator Bragg said on Sunday. "Most of the policies that have been turned out have been junk. Andrew Bragg says the major parties have failed to offer a good housing policy for about a decade. (ABC News: Matt Roberts) The treasurer, who said in a National Press Club address soon after the 2025 election that he was preparing to "grasp the nettle" and wear some political pain to fix the budget, has flagged that it would include changes to make the housing market and tax system "fairer". Changes to negative gearing and the capital gains (CGT) discount would be another significant breach of the faith of voters, following a broken promise last term not to amend a package of income tax cuts that would have mostly benefited higher-income earners. Asked repeatedly on the election campaign trail whether the government would rule out changes to negative gearing or capital gains tax, Prime Minister Anthony Albanese responded with annoyance: "Yes. How hard is it? For the fiftieth time." Mr Chalmers conceded on Sky News yesterday that Labor's election campaign focused "almost exclusively on supply". Treasurer Jim Chalmers says the federal government has an obligation to explain its reasons for breaking election promises if Tuesday's federal budget does include changes to negative gearing or CGT discounts. (ABC News: Callum Flinn) The government has been accused of hiding its intentions during the most recent federal election to hit both tax perks. Both policies were part of Labor's agenda at the 2019 election, and have become totems of the housing debate inside Labor as much as they have in the electorate. After Labor's surprise defeat at

$100m plan to use AI to speed up housing

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