This week the Albanese Government takes another step forward in delivering the most significant housing reforms in a generation with the introduction of Help to Buy legislation.
Help to Buy will bring home ownership back into reach for 40,000 Australian households.
This will be life changing for thousands of Australians who have been locked out of the security and stability of home ownership.
The Government will support eligible homebuyers with an equity contribution of up to 40 per cent for new homes and 30 per cent for existing homes.
Homebuyers will need a minimum 2 per cent deposit to participate in the Scheme, and will have lower ongoing repayments while they participate in the scheme, providing long‑term relief.
Help to Buy is intended to support Australians who otherwise would not be able to purchase a home.
States will need to pass their own legislation in order for Help to Buy to operate in their jurisdiction.
Help to Buy will operate in the territories following passage of Commonwealth legislation.
All states agreed at National Cabinet to progress legislation so the Scheme will run nationally from next year.
The Albanese Government has already helped more than 86,000 people across Australia into home ownership through the Home Guarantee Scheme, including 13,000 through the new Regional First Home Buyer Guarantee.
The Home Guarantee Scheme has also been significantly expanded, making it easier for Australians to buy a home.
The Albanese Government’s ambitious housing reform agenda also includes:
- The newly created $10 billion Housing Australia Future Fund
- A new national target to build 1.2 million well‑located homes
- A $3 billion New Homes Bonus, and $500 million Housing Support Program
- A $2 billion Social Housing Accelerator to deliver around 4,000 new social homes across Australia
- A National Housing Accord which includes federal funding to deliver 10,000 affordable homes over five years from 2024 (to be matched by up to another 10,000 by the states and territories)
- An investment of an additional $1 billion in the National Housing Infrastructure Facility to support more homes
- Up to $575 million in funding already unlocked from the National Housing Infrastructure Facility, with homes under construction across the country
- Increasing the maximum rate of Commonwealth Rent Assistance by 15 per cent, the largest increase in more than 30 years
- An additional $2 billion in financing for more social and affordable rental housing through Housing Australia
- New incentives to boost the supply of rental housing by changing arrangements for investments in Build‑to‑Rent accommodation
- A $1.7 billion one‑year extension of the National Housing and Homelessness Agreement with states and territories, including a $67.5 million boost to homelessness funding over the next year
- The development of a new National Housing and Homelessness Plan
- States and territories committing to A Better Deal for Renters.
Quotes attributable to the Minister for Housing, Julie Collins:
“Right across the country Help to Buy will be life changing, bringing home ownership back into reach for thousands of Australians, particularly renters.
It won’t just be a leg up into home ownership with savings from a smaller deposit – it will provide long‑term relief to Australians who are part of the Scheme.
In fact, Help to Buy could help eligible new homeowners save hundreds every month on their mortgage.
Our Government has already helped more than 86,000 people into home ownership, and Help to Buy will mean even more Australians have this opportunity.
Our ambitious housing reform agenda is working across the board – more help for homebuyers, more help for renters and more help for Australians needing a safe place for the night.”