Prime Minister Anthony Albanese has made housing affordability an election priority. Photo: Michelle Kroll.
Housing access and affordability have taken centre stage in the federal election, with both major parties using their official campaign launches to offer competing policies aimed at getting more people into their own homes.
Labor will spend $10 billion to build 100,000 new homes across Australia, specifically for first home buyers.
It will also introduce a plan to allow all first home buyers to buy with just a 5 per cent deposit.
The plan would help first-time home buyers avoid lender’s mortgage insurance, which the government says adds about $23,000 to an average first home buyer’s mortgage.
The Coalition’s big housing announcement is to allow first-time buyers who buy newly built homes to deduct mortgage payments from their income taxes.
The offer would only apply to newly built homes and would be available to first-time buyers earning less than $175,000 a year for an individual or $250,000 for a couple.
The Opposition’s scheme would apply to the first $650,000 and first five years of a mortgage, with no limit on the purchase price of the house or size of the mortgage.
The Coalition says its policy would save a first home buyer with a $650,000 mortgage and taxable income of $120,000 about $12,000 a year.
Both parties launched their campaigns on Sunday (13 April): Labor in Perth and the Coalition in Sydney.
Anthony Albanese offered a $1000 instant tax deduction for work-at-home expenses.
“No paperwork, no box of receipts, no scrolling through your online banking – just tick the box and your return is ready,” the Prime Minister said.
“Every year, millions of people who work part time, or work from home, or don’t have an accountant to navigate the tax system for them miss out on claiming deductions they are entitled to and pay more tax than they should.
“This reform fixes that, and it fixes it forever. It takes away the hassle of tracking your expenses, especially if you work from home.
“And it gives you back more of your own money, faster.”
It was Labor’s housing policy, however, that the PM spent the most time spruiking, saying his party was “backing the great Australian dream”.
He said buying a first home has never been easy, but for the current generation, it has never felt further out of reach.
“At the moment, if you can’t get that 20 per cent deposit, the only other option is to pay $20,000 or more in mortgage insurance,” Mr Albanese said.
“The only thing that buys you is higher repayments down the track. That is no kind of choice at all.
“Our Labor government is going to fix it.
“Today I announce that under a Labor government, you will be able to buy your first home with just a 5 per cent deposit.
“Our Five Per Cent Deposit Plan will be open to every Australian looking to buy their first home.
“It will be available for homes valued all the way up to the average price in every city and region.
“And you won’t have to pay a single dollar for mortgage insurance; our government will cover it.
“If you’re looking to buy your first home, Labor’s got your back.”
Opposition Leader Peter Dutton says he will be a PM who restores the dream of home ownership. Photo: Peter Dutton Facebook.
During the Coalition’s campaign launch, Peter Dutton said he won’t accept a situation in Australia where the only people who can buy a home are those who can rely on the “bank of mum and dad”.
The Opposition Leader said if elected, he would be a prime minister who restores the dream of home ownership.
A Coalition government would ease demand on housing by banning foreign investors and temporary residents from purchasing existing homes for two years.
It would also lower the permanent migration program by 25 per cent for two years and bring down the number of new foreign students commencing in higher education by 30,000 each year.
“We will allow Australians to access up to $50,000 of their super towards a deposit for their first home,” Mr Dutton said.
“Your super is your money – not the government’s.
“We will also work with the prudential regulator to ease rigid and overly-strict lending criteria, and that will result in tens of thousands more Australians being able to get a home loan.
“Today, I announce a new policy for first home buyers who purchase a newly built property to live in.
“A Coalition government will allow you to deduct interest payments on the first $650,000 of a mortgage against your taxable income.
“We will allow these deductions for five years, provided you continue to live in that home for that period.
“This policy will be available to individuals with a taxable income of $175,000 or less – and joint applicants earning a combined income of $250,000 or less.”
Greens leader Adam Bandt has already launched his party’s policy to build more public housing, cap rent increases, and to limit negative gearing and the capital gains tax discounts to one property.
Combined, these policies from across the parties are ensuring housing is very much a federal election main game.
