Labor has announced new housing policies it will roll out if it wins the 3 May election.
The party unveiled a new plan to allow all first home buyers to put down a 5% deposit on a property, cutting the current standard rate of 20%. It made the announcements at its official campaign launch in Perth this afternoon.
It’s also announced a further $10 billion measure to build 100,000 “affordable” homes over the next eight years, which would only be sold to first home buyers.
Scheme expansion
Labor wants to expand a measure rolled out in 2020, known as the ‘Home Guarantee Scheme’. This scheme currently allows first-time home buyers to buy a property with a 5% deposit.
From January 2026, it will remove current eligibility requirements and caps on who can participate in the scheme, opening it up to all first-time home buyers regardless of income.
Buyers would still have to be Australians who are buying their first home, and plan to live in the house.
The scheme
When the scheme launched in 2020, there were limited spots each year. Under the scheme, the government acts as a ‘guarantor’ for the rest of the deposit, typically 15% of the house price. This means buyers avoid paying Lenders Mortgage Insurance, usually required for deposits under 20%.
The 5% deposit can only be used towards properties below a set value, depending on where they are bought.
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For example, the maximum property price would be $1.5 million in Sydney, compared to $850,000 in Perth.
More policies
Labor also announced a new standard tax deduction of $1000 a year on work-related expenses, without needing to provide evidence of expenses in a tax return.
Labor also announced it would invest $10 billion in an eight-year plan to build 100,000 new homes that would only be sold to first home-buyers, in a deal to be reached with state and territory governments.
Under the plan, states and territories would get $8 billion in no-interest loans from the federal government, who would then provide the extra $2 billion.
Campaign launches
In Australian elections, the major parties put on large events around mid-way through the campaign trail, known as the “campaign launch”.
The launch is an opportunity for the leaders to address party supporters and lay out major policy pitches.
Prime Minister Anthony Albanese launched Labor’s campaign in Perth, while Opposition Leader launched his in Western Sydney.
