Federal Labor’s emphatic victory in this week’s election lays the foundation for the government to get on with implementing the housing policies they promised to deliver during the campaign. When asked by ABC’s 7:30 last week if the Prime Minister secretly harboured plans to review negative gearing and capital gains tax settings, the PM noteworthily stated he understood the importance of supply and the millions of investors that continue to deliver rental homes for tenants. Let’s hope an emboldened Labor party don’t try and meddle with this important policy setting.
Labor will now move swiftly in utilising the Housing Australia Future Fund (HAFF), a $10 billion investment fund launched in 2022. The fund is designed to generate returns—estimated at around $500 million per year—that will be used to build 30,000 new social and affordable homes over five years. Of these, 4,000 are earmarked for women and children escaping domestic violence and for older women at risk of homelessness. The HAFF is structured to provide ongoing, sustainable funding by investing capital and using the proceeds to support housing projects.
The government will also introduce the National Housing Accord, bringing together all levels of government, investors, and the construction industry. The Accord sets a national target of building 1.2 million new, well-located homes over five years from 2024. Within this, the federal government has committed to co-funding 20,000 new affordable homes—10,000 directly and 10,000 matched by states and territories.
To assist first homebuyers, the government’s Help to Buy scheme will expand, a shared equity initiative that allows eligible buyers to co-purchase a property with the government. The Commonwealth can contribute up to 40% of the purchase price, reducing the deposit and mortgage required. This scheme is expected to support up to 40,000 participants over the next term. This compliments the First Home Guarantee Scheme whereby the government effectively underwrites home lenders mortgage insurance supporting first home buyers buy a home with a 5% deposit.
Labor has also pledged more than $100 million for remote Indigenous housing, working with state and territory governments to reduce overcrowding and improve living standards in Aboriginal communities.
Now the nation has decided Labor’s housing policies are best suited to addressing the housing crisis, let’s hope their mandate clears an effective path that protects equity whilst adding to supply.
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