The Albanese Labor Government’s 2025 housing policy focuses on a $43 billion investment to increase supply and assist first-home buyers, including a $10 billion commitment for 100,000 new homes.
Key initiatives include the Help to Buy shared equity scheme and expanding the Home Guarantee Scheme to allow 5% deposits with no income caps from 2026.
Key Pillars of Labor’s Housing Policy
Supply and Construction:
- 100,000 New Homes: A $10 billion investment focused on building homes exclusively for first-home buyers, aiming to remove competition with investors.
- Social Housing Accelerator: Over $2 billion delivered to states for social housing.
- Targeting 1.2 Million Homes: Aiming for 1.2 million new homes by 2029.
- Help to Buy Scheme: The government acts as a co-buyer, contributing up to 40% of the cost for new homes and 30% for existing homes, reducing mortgage sizes.
- Expanded Home Guarantee Scheme: From 2026, the scheme will be expanded to allow all first-home buyers to purchase with a 5% deposit, with no income caps or participant limits.
- Regional Focus: Strengthening housing options in regional areas.
- Rent Assistance Increase: A 15% increase in maximum rates, aimed at providing relief for renters.
- Build-to-Rent Incentives: Tax incentives designed to attract institutional investment into long-term, professionally managed rental properties.
- Over $300 million is directed towards improving housing in remote Aboriginal and Torres Strait Islander communities.
Key Concerns and Debate
Inflationary Pressure: Critics, including the Greens, argue that demand-side schemes like "Help to Buy" could drive up home prices.
- Supply Targets: Some industry experts, such as Master Builders Australia, have questioned the feasibility of achieving the 1.2 million home target, though they note it is "not insurmountable" with proper collaboration.
- High-Income Earners: Removing income caps on the 5% deposit scheme means high-income earners will also qualify.
The state government has finally tabled legislation to place a 5 per cent levy on short stay accommodation bookings in Tasmania.I agree with thus policy, but I believe the revenue could be better spent. Here's my take on it
Short stay levy revenue should support homelessness services
I welcome the tabling today of the Liberals’ long-awaited Short Stay Levy Bill.
However, I will continue to argue that the estimated $11 million to be raised by the levy should go towards homelessness services rather than first home buyer grants.
While helping people into housing market is worthwhile, there can be no higher priority than helping homelessness services which can’t cope with demand.
With more than 8000 short stays listed in Tasmania, including 1000 non-primary residences in Greater Hobart, this phenomenon is no doubt playing a part in the lack of affordable long-term rentals and contributing to the housing crisis.
Therefore, it’s only fair that some government revenue should be raised through this growing sector and redistributed to those in most dire need of housing.
In terms of the levy rate, five per cent is a minimal and I will advocate for it to be higher.
Evidence from other jurisdictions demonstrates that levies of 5 per cent function primarily as revenue raising, whereas levies closer to 10 per cent more likely to influence decision-making of property owners when it comes to listing the property as a short stay or long-term rental.
Victoria has set its levy at 7.5 per cent.
It is also disappointed to see the levy won’t be in operation until January 2027, almost three years after it was first promised.
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