The results are in — and Labor’s landslide Federal Election win has secured a rare second term. But what does this mean for housing? In the lead-up to the election, the government pledged to increase total housing commitments to $43 billion[i], with a focus on improving homebuyer access and speeding up new home construction.

During the campaign, the government, as part of its “Home for Australia” plan, made a handful of pledges, including:

1.    Delivering 100,000 homes for first-home buyers only

The re-elected Albanese Labor Government has pledged $10 billion to deliver up to 100,000 new homes exclusively for first-time buyers. These properties will be built close to jobs and family without competition from investors. The funding will support essential infrastructure, land acquisition, and construction to fast-track delivery.

2.    Expanding access to 5% deposits to all first-home buyers

From 2026, the Labor Government will expand the Home Guarantee Scheme to all Australians buying their first home. There will be no income caps and no limit on the number of applicants. Eligible first-home buyers can purchase a property anywhere in Australia with as little as a 5% deposit.

3.    Delivering smaller mortgages for first-home buyers

First announced in 2022, Labor’s Help to Buy shared equity scheme opens later this year and has the Commonwealth Government pitch in up to 40% of the upfront cost of your home – making it easier for a first home buyer to purchase a home with a smaller mortgage. Under this scheme, eligible low- to middle-income earners only need a 2% deposit to qualify for a standard loan with participating lenders. Also, they won’t be required to pay lenders mortgage insurance (LMI).

4.    Leading a national effort to speed up construction

Labor will deliver a $54 million targeted investment in advanced manufacturing of prefabricated and modular home construction. It will also provide $120 million from the National Productivity Fund to incentivise states to remove red tape and help more homes be built faster. Prefab and modular homes can be built up to 50% faster than traditional homes.

5.    Supporting construction industry employment opportunities 

The Labor Government has pledged to invest $78 million to fast-track the qualification of 6,000 tradies to help build more homes across Australia. This election commitment will establish the Advanced Entry Trades Training program to help experienced, but unqualified workers get the qualifications and recognition they deserve for their work.

Labor also repeatedly ruled out changing capital gains tax (CGT) in the lead-up to the election, and Treasurer Jim Chalmers confirmed there would be no changes to negative gearing[ii]. However, with a strong mandate secured, it’s a space to watch closely over the next three years—especially as the government now has more room to move on potential tax reform.[AO1] 

 
[i] https://alp.org.au/homes-for-australia/
[ii] https://www.aap.com.au/factcheck/dutton-wrong-labors-policy-is-not-to-axe-capital-gains-tax-discount/
 
 [AO1]I reckon this is a fair thing to write...when politician's lips are moving….