Understanding Labor’s new housing policies
With the re-election of the Albanese Labor Government, Australia’s housing sector is set for significant reform – particularly for first homebuyers.
The Government has committed $33 billion to a wide range of housing initiatives aimed at improving affordability, boosting supply, and supporting construction. For those looking to enter the property market in Western Australia, several key policy changes could make home ownership more accessible than ever before.
First Home Buyer Guarantee
The First Home Buyer Guarantee remains a cornerstone of the Government’s housing strategy. The scheme now allows eligible Australians to purchase their first home with as little as a 5% deposit, without paying Lenders Mortgage Insurance (LMI) – a cost-saving measure that can amount to tens of thousands of dollars.
Several restrictions have been removed, making the scheme available to a broader range of buyers:
- No income caps, allowing more individuals and families to qualify, regardless of earnings.
- No cap on the number of places, creating certainty that support will be available when you apply.
- Increased price thresholds – in WA, this now extends up to $850,000 in Perth and $600,000 in regional areas.
This expanded accessibility is particularly important in regional centres where rising property prices have made saving a 20% deposit increasingly difficult.
Help to Buy Scheme
The Help to Buy scheme is another major initiative designed to ease the path to home ownership. Under this shared equity model, the federal government will contribute up to 40% of the purchase price of a new home, in exchange for an equity stake that the buyer can purchase back over time.
Key features include:
- Buy with as little as a 2% deposit, without LMI.
- Income thresholds increased to $100,000 for individuals and $160,000 for couples or single parents.
- Property price caps set at $850,000 in Perth and $600,000 in regional WA.
This program significantly reduces the size of the mortgage required, lowering monthly repayments and improving affordability for many households.
Housing supply and construction industry support
To help address the national housing shortfall, Labor has also committed to increasing the supply of homes through targeted initiatives:
- 100,000 new homes for first homebuyers over eight years, built in partnership with state and territory governments and locked away from property investors.
- 55,000 new social and affordable homes, including 28,000 already in development, with a focus on housing for veterans, women and children at risk, and essential workers.
- $1.2 billion investment in crisis and transitional housing to support vulnerable Australians.
To support this ambitious construction pipeline, the Government will invest $78 million to fast-track training for 6,000 new tradies. From July 1, 2025, eligible apprentices working in housing construction will also receive $10,000 in incentive payments during their training.
Other housing reforms include:
- Build-to-Rent tax incentives, encouraging the development of an estimated 80,000 new rental homes over the next decade.
- A 45% increase in Commonwealth Rent Assistance, the largest back-to-back rise in more than 30 years, assisting over 1 million households.
- A ban on foreign investors purchasing existing homes between April 2025 and March 2027, with limited exceptions for developments that increase overall housing supply.
These policy changes are designed to ease the barriers to entry into the housing market, particularly for first-time buyers.
If you’re considering building your first home, now is an ideal time to explore your options. Our team can guide you through the eligibility requirements for these new schemes and help you take the next step toward home-ownership.
