The Hidden Economics of Spare Bedrooms
Housing
GOVERNMENT TOOLS
CONSULTING
Federal Budget 2026–27: What it means for councils (and how Informed Decisions can help)
Housing
Crystal McDonald
Lead Housing Consultant
What this Budget means for councils
- $2 billion Local Infrastructure Fund to help unlock up to 65,000 new homes
- Local government positioned as an essential housing delivery partner
- Funding will be competitive, evidence-driven and outcomes-focused
- Councils need clear, place-based evidence to make the case
BUDGET CONTEXT
Housing at the centre of the Budget
The 2026–27 Federal Budget reinforces housing as Australia’s defining domestic policy challenge, and confirms local government as a central partner in delivery.
Across the package: new investment to unlock housing-enabling infrastructure, reforms shifting investment toward new housing supply, continued funding for social housing and homelessness services, and targeted measures for young people, remote Indigenous communities and first home buyers.
The headline measure for councils is the $2 billion Local Infrastructure Fund, designed to unlock up to 65,000 new homes by funding the infrastructure that makes housing possible: roads, water, sewerage, power and drainage.
For councils, this is a real opportunity. It also changes what good looks like. Competitive Commonwealth funding will reward councils that can move quickly, demonstrate impact, and justify their priorities with current, local, place-based evidence.
In practical terms, that means showing:
- where housing can realistically be delivered
- what infrastructure is blocking supply
- what housing yield could be unlocked
- which households are experiencing housing stress
- where social and affordable housing is most needed
- how local priorities align with state and Commonwealth housing targets
This is now the evidence baseline for a credible council housing position: for advocacy, for funding submissions, for state and federal engagement, and for delivery.
EVIDENCE FOR ACTION
Turning Budget opportunity into local evidence
Informed Decisions partners with more than 300 Australian councils across every state and territory. We provide an integrated evidence base for local government: a layered set of demographic, housing, economic and community intelligence that councils subscribe to in the combinations that match their priorities. Behind the data, our in-house experts help councils translate evidence into housing strategies, infrastructure cases, advocacy positions and funding submissions.
Across the evidence base:
Housing Monitor brings together local housing stress, affordability, dwelling types, the dwelling pipeline, unmet affordable housing need, local worker affordability and the spatial patterns of housing pressure. It is the foundation layer for any council housing strategy in the current Budget environment. Learn more about Housing Monitor
Population Forecast projects how population, households and dwellings will change at small-area scale, so councils can plan for future demand for housing, infrastructure and services rather than only respond to current pressure. Learn more about Population Forecast
Community Profile gives a clear demographic picture of who lives in the community, how that is changing, and what it means for planning and service delivery. Learn more about Community Profile
Community Views captures representative community sentiment about liveability, financial capacity and local priorities, and how those vary across suburbs and age groups. Learn more about Community Views
Economic Profile adds the workforce and economic development lens, capturing the relationship between housing affordability, local labour markets, key worker attraction and economic resilience. Learn more about Economic Profile
Social Atlas maps where need is concentrated, identifying local pockets of housing stress, disadvantage and demographic change that policy responses need to target. Learn more about Social Atlas
Together, these layers help councils answer the questions that matter most under this Budget: what is needed, where is it needed, who is affected, what is stopping delivery, and how can investment unlock better housing and community outcomes.
WHAT'S NEXT
Helping councils act with confidence
The Budget recognises councils as essential housing delivery partners, but it does so under conditions that will reward councils able to compete on the strength of their evidence: clear local data, sharp analysis, and a credible link between local need and proposed investment.
Informed Decisions helps councils prepare stronger advocacy, build better housing strategies, frame clearer infrastructure cases, and form more targeted partnerships, backed by trusted local evidence that connects housing need, population change, infrastructure demand and community impact.
In a housing environment where every council is being asked to do more with less, an integrated evidence base, paired with the in-house expertise to apply it, is the most efficient route to credible answers, for a fraction of the cost of going it alone.
GET IN TOUCH
We work with councils on housing decisions
We work with more than 300 councils across Australia on how they use evidence to make housing decisions. We see how others are tackling these same challenges day in, day out. Before you commit to anything, we're happy to share how other councils are approaching the questions you're working through.
Meet the team of experts
Our specialists have deep expertise in demographics and spatial analysis, urban economics, housing research, social research and population forecasting
