Housing policy in focus ahead of federal election

AS Australia heads toward the federal election, housing has emerged as one of the most pressing issues on the political agenda.

With affordability challenges and a growing housing shortage, both major parties have unveiled significant proposals aimed at improving access to home ownership and easing the pressure on the property market.

Labor’s plan: 5 per cent deposit scheme for all first home buyers

Prime Minister Anthony Albanese has proposed broadening the existing 5 per cent deposit scheme to help more Australians break into the property market. This initiative would lower the barrier to entry for first home buyers, theoretically allowing them to secure mortgages with smaller upfront savings.

However, critics argue that while the scheme may sound appealing, it could unintentionally worsen housing affordability by increasing demand in an already overheated market.

Plus: $10 billion housing investment

The Labor Government has also announced a $10 billion investment to construct 100,000 homes designated specifically for first home buyers.

The plan also includes measures to identify underused government-owned land and streamline planning approvals in order to fast-track development. Yet despite these intentions, questions remain over the industry’s ability to deliver on such ambitious targets.

The Coalition’s plan

The Liberal Party outlines its plan for affordable housing with a focus on helping more Australians own their first home while increasing overall housing supply.

Their plan is to unlock up to 500,000 new homes by investing in infrastructure like water, power, sewage and roads. As well as setting a target of 400,000 apprentices and trainees and freezing the National Construction Code for 10 years.

Interest-free repayments for first home buyers

Further to their broad strategy of increasing supply of new homes, the coalition will make payments on new homes tax deduction for First Home Buyers, on the first $650,000 of their mortgage and for a five-year period.

Industry concerns: No meat on the bone

Questions have been raised about whether the housing policies being proposed can realistically be implemented under current conditions and the lack of detail given by either party on how these polices will be implemented.

The construction sector is presently facing significant workforce shortages. In 2024, Australia had 27,000 fewer tradespeople compared to the previous year. In addition, there has been a decline in the number of apprentices and non-trade workers entering the field, putting further strain on project delivery timelines. It’s not certain where this extra skilled labour will be coming from.

Additionally, a broad target to construct 100,000 new homes comes with no detail as to how this will be funded, who will be building them, what the purchasing mechanics are and over what timeframe.

Another key issue is the focus on first home buyers, which, while important, leaves a gap in support for renters — a growing demographic that often faces the harshest consequences of the housing crisis.

The road ahead

As the election debate continues, housing remains a central issue for voters. The challenge for both major parties will be ensuring their proposed policies are not only visionary but also practically achievable. Delivering housing outcomes that benefit both aspiring homeowners and renters will require co-ordinated efforts across government and industry, alongside strategic investments in workforce development and infrastructure.

WITH GREENFIELD HOMES

//SPONSORED CONTENT