First Home Buyer Policies: Labor vs Coalition Compared
With Australia’s housing affordability crisis reaching critical levels, both major parties have unveiled policies to help first home buyers enter the market. As the May 3 federal election approaches, we compare their key housing initiatives.
Labor’s Housing Policies
$10 billion investment to build 100,000 new homes exclusively for first home buyers
Expanded First Home Guarantee:
5% deposit with no LMI (lenders mortgage insurance)
Removal of income limits, making more buyers eligible
Increased property price caps
Help to Buy scheme expansion:
Government contributes up to 40% of home cost
Buyers can purchase the government’s share later
Coalition’s Housing Policies
First Home Buyer Mortgage Deductibility:
Tax deduction on mortgage interest (first $650,000 of loan)
Available for 5 years on new builds only
Income caps: 175k(single)/250k (joint)
Enhanced First Home Guarantee:
Higher income & price limits
No annual cap on participant numbers
Super Home Buyer Scheme:
Access $50,000 from super (must be repaid upon sale)
Which Policy Helps You More?
Labor: Better for buyers wanting low-deposit entry & shared equity
Coalition: More beneficial for higher earners buying new homes
Need Help Navigating Options?
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Disclaimer: This is general information only, not financial advice. Consider your personal situation and consult a professional.
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