How Labor’s Housing Plan Will Impact You

Australia’s housing market is poised for significant change under a newly elected Labor administration that has placed housing affordability at the centre of its policy platform.

Here’s a quick breakdown on how Labor plans to tackle Australia’s housing crisis.

• 100,000 homes for first home buyers

  $10 billion committed to build 100,000 homes over eight years, reserved exclusively for first home buyers and delivered in partnership with state developers.

  
  

• Expansion of First Home Guarantee Scheme (5% deposits)

  Income and property price caps abolished, allowing any first home buyer to purchase with a 5% deposit and no Lenders Mortgage Insurance (LMI).

  
  

• Help to Buy Scheme expansion

  Broader eligibility for a program where the government co-purchases up to 40% of a home, with the buyer able to repurchase the government’s share later.

  
  

• Build to Rent incentives

  Tax incentives for developers who construct apartments with a portion rented below market rates under “affordable” housing terms.

  
  

• Apprentice incentive payments

  Up to $5,000 in payments for apprentices in priority industries (including construction) who complete their first year of training.

  
  

• Temporary foreign investor ban

  Foreign buyers banned from purchasing residential property in Australia for two years to reduce demand-side pressure on the housing market.

  
  

• Housing Australia Future Fund

  Continued rollout of a $10 billion fund to build 30,000 social and affordable homes over the government’s term.

  
  

• Broader construction target: 1.2 million homes over 5 years

  Ambitious target includes the 100,000 first-buyer homes and aims to meet long-term supply needs, despite challenges such as high building costs, industry insolvencies, and construction delays.

  
  
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  Market implications and outlook

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• Estimated 80,000 first home buyers per year expected to benefit from the expanded deposit scheme.

• Likely short-term increase in housing demand and property prices.

• Long-term goal is to lift supply and restore affordability through higher development feasibility.

• Rising prices may eventually bring construction costs and values into equilibrium, stimulating supply.