What’s the 2025 Australian election set to promise on housing?
Ahead of this week’s federal election, housing affordability is in the national spotlight – and each party has voiced a different vision for how they believe Australian buyers can get into the market.
But while campaign promises can spark opportunity, it’s important for buyers to take a look beyond the headlines – here’s our breakdown of how each party plans to tackle the issue.
Labor
The Australian Labor Party is expanding its existing ‘Help to Buy’ scheme which splits ownership of a property between the buyer and the government, by reducing upfront costs and repayments.
Usually the minimum deposit for a home is around 20%, however labor is backing its policy of 5% minimum deposits for all eligible first home buyers – offering to contribute up to 40% of the purchase price for new houses, and up to 30% for existing homes.
This arrangement in theory should reduce the amount buyers need to borrow from a lender as well as decreasing Lenders Mortgage Insurance (LMI), however the government’s share does need to be repaid, which may rise proportionally as the property’s value increases.
Labor also plans to build 100,000 new properties for first home owners under the House Australia’s Future Fund.
Coalition
The Coalition is focussing on boosts to super-based initiatives this election, while calling for buyers to be able to dip into their superannuation (up to $50,000) to buy a first home – though any super used in buying a home will need to be returned if the property is sold. The party is also calling for the ability to deduct mortgage interest payments from income tax on the first $650,000 of a loan, for first home buyers only.
This would also enhance access to loans and reduce borrowing costs by overcoming the ‘deposit barrier’ that many buyers experience, as well as providing tax deductions on loan interest, however the downside is reducing future retirement funds, and negatively impacting housing supply and demand.
The Greens
The Greens Party have advocated for a two-year freeze on rent increases, then capping it to 2% for the following two years. They are focussed on stronger tenant protections, as well as pledging to set up a government property developer to oversee the construction of thousands of new homes over the next decade.
While the major party proposals offer fresh hope and a leg-up into the market, buyers should be mindful that policies can shift – but interest rates, ongoing repayments and committing to the lifetime of a loan will always be a given.
Always speak to your lender about budgeting, financial stability and servicing a loan beyond the first few years, before signing the dotted line!
Prudential Real Estate Macquarie Fields | (02) 9605 5333 | [email protected]
Prudential Real Estate Narellan | (02) 4624 4400 | [email protected]
