Federal election 2025: What Labor, Coalition are offering on housing
Underpinning this cost-of-living-centric election is the issue of housing. The states and territories have a big responsibility to play, but the federal government has more money at its disposal and the major, overarching levers to pull.
In the latest federal budget, Labor beefed up its shared equity scheme, taking the program to $6.3bn over the next four years. The government will pay for and take a stake in a first homebuyer's house.
The Labor government has also set an 'ambitious national target' to build 1.2 million new homes over the next five years, including 55,000 social and affordable properties, all at a cost of $21bn. This figure includes $4.5bn to the states and territories to unclog planning and infrastructure backlogs. The latest estimates forecast the country will fall 400,000 homes short of Labor's 1.2 million home target.
If the Coalition is elected, they say their plans for big cuts to immigration will fit hand in glove with measures to reduce power bills, and allowing people to pull from their superannuation, to help more people buy themselves a house.
What the major parties agree on:
Foreign buyer ban:
Both Labor and the Coalition will ban foreign investors and temporary residents from buying existing homes for two years. The policy does not stop this cohort investing in newly built homes.
No changes to negative gearing
: Both major parties have ruled out changes to negative gearing and capital gains tax.
Negative gearing allows an investor to offset income from an investment property against any losses from maintaining it, giving them a potential tax deduction.
Capital gains tax is a 50 per cent concession on any profit made from the sale of assets, including a house, after owning it for at least 12 months.
Labor:
New home builds:
Labor will expand its Homes for Australia plan to build an extra 100,000 homes specifically for first-time buyers. The party has also vowed $54 million to boost construction of prefabricated and modular homes.
Help to Buy
: The government committed another $800m in the 2025 federal budget to lift property price and income caps on its Help to Buy scheme, which contributes equity of up to 40 per cent to support eligible homebuyers.
Home Guarantee Scheme
: All first homebuyers to be eligible for 5 per cent deposits, without needing to pay mortgage insurance.
Tradies:
In a bid to boost supply, the government is offering construction apprentices a $10,000 cash bonus, while employers of various key trades can get $5000 under the Priority Hiring Incentive. Tradies can also get means-tested concessional loans to help with living expenses, learning a trade and doing an apprenticeship.
Infrastructure boost:
Labor has pledged a $1.5 billion fund to fast-track roads, sewage and water connections, aimed to speed up construction of new housing.
Rental investment:
Investors will receive tax breaks as part of the build-to-rent program, which is estimated to deliver an extra 80,000 units over the next 10 years.
The Coalition
Superannuation for housing
: A Coalition government would allow first homebuyers to take 40 per cent of their superannuation, up to $50,000, for a home deposit. When the home is sold, the money would be repaid into superannuation.
Mortgage tax break
: The Coalition will allow first homebuyers of new properties to claim the interest paid on the first $650,000 of a mortgage as a tax deduction, which is expected to cost $1.2 billion over four years.
Home Guarantee Scheme:
The Coalition has also vowed to maintain the Home Guarantee Scheme program, which includes a 5 per cent deposit program for up to 35,000 first homebuyers, and another 10,000 specifically for those buying in a regional area, as well as a 2 per cent deposit scheme for 5000 single parents or eligible single legal guardians with at least one dependent.
Infrastructure boost
: A $5 billion fund would help speed up development of new homes, fast tracking necessary infrastructure like roads, sewage and water.
Population:
The Coalition would slash immigration numbers, which it says are a major contributor to the housing crisis. A Liberal National government would reduce permanent migration from 185,000 to 140,000 for two years, and then 150,000 in year three and 160,000 in year four). The refugee and humanitarian program intake would be cut from 20,000 to 13,750.
Backlog:
Opposition Leader Peter Dutton has pledged to clear the backlog of housing projects waiting for environmental approvals, estimated to be more than 100, within his first 12 months if elected.
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