Prime Minister Anthony Albanese is set to address ABC Radio National this morning as the Australian Parliament reconvenes for its latest session. His remarks come in anticipation of significant housing policy changes aimed at assisting first homebuyers.
The government will launch a program allowing first homebuyers to purchase properties with just a 5 percent deposit, starting in October 2023, three months ahead of the timeline promised during the last federal election. This initiative is part of the expanded First Home Buyers Guarantee, which was a key element of the Labor Party’s housing commitments. The revisions will remove annual limits on the number of beneficiaries and lift income and property price caps.
Under the new scheme, individuals earning up to $125,000 and couples earning up to $200,000 will be eligible to buy properties without the burden of lenders’ mortgage insurance, which can significantly increase initial costs. The property price caps will also be adjusted, allowing purchases up to $1.5 million in Sydney, $950,000 in Melbourne, and $1 million in Brisbane, among other increases across the nation.
According to Treasury estimates, the modifications could lead to an additional 20,000 guarantees being issued in the first year following the uncapping of the scheme. The government anticipates that these changes will not only facilitate home purchases but also save many potential buyers tens of thousands of dollars in rent.
Criticism has emerged regarding the potential impact on housing prices. Barnaby Joyce, a backbencher from the Nationals party, expressed concerns that the expanded access to the first homebuyer scheme could further inflate property prices. He stated, “What this will do, of course, with a basically static national supply of houses is just push up the prices of houses.” Joyce argued that the additional borrowing capacity could enable buyers to bid higher at auctions, exacerbating the existing housing affordability crisis.
In a related issue, Senator Jacqui Lambie defended Albanese after the Prime Minister’s planned meeting with U.S. President Donald Trump was cancelled during the recent G7 summit. Lambie criticized Trump’s early departure, suggesting it was inconsiderate given the ongoing AUKUS deal discussions. She emphasized that the fault did not lie with Albanese, who was actively seeking to engage with the U.S. leader.
As the Parliament session continues, Labor plans to debate legislation aimed at repealing Australia’s net zero emissions target, highlighting internal divisions within the party over climate policy. The government is also expected to promote the advantages of the new homebuyer scheme throughout the morning.
With Parliament back in session, the focus will be on these key issues as lawmakers address pressing matters affecting Australians’ lives and the economy.
