Josh Burns (Macnamara, Australian Labor Party) Share this | Link to this | Hansard source

I move the motion relating to first home buyers in the terms which it appears on the Notice Paper:

That this House:

(1) acknowledges the Government's commitment to help first home buyers realise their dream of ownership by:

(a) bringing forward the launch of the 5 per cent deposits scheme for all first home buyers to 1 October 2025, instead of next year;

(b) expanding the 5 per cent deposits scheme with unlimited places and increased property price caps;

(c) guaranteeing a portion of a first home buyer's home loan through the 5 per cent deposits scheme, so they can purchase with a lower deposit and avoid lenders' mortgage insurance; and

(d) offering eligible single parent families with a saved 2 per cent deposit access to the Family Home Guarantee; and

(2) notes that 180,000 Australians have already been helped into home ownership through the Government's housing policies.

In the thousands of conversations that I had with the wonderful people of Macnamara leading up to the election, I often asked them a pretty simple question: 'What do you care about? What's important to you?' and, time and time again, what people in my electorate came back to me with was: 'We'd like to buy our own home; we'd like to be able to purchase our own home, get out of the rental market and set up our lives so that we're accumulating an asset and paying off our own mortgage and not someone else's.' This is a trend and a sentiment that is expressed by not just the wonderful people of Macnamara but also people right around our country.

People know that to be able to get into the housing market means being able to work overtime to pay off a mortgage, to build up an asset, and to potentially retire with their own home—to have their own house as a place of safety and security. But we also know that, as a long-term trend in this country, the cost of housing, in proportion to one's own salary, has gone up dramatically and that what used to be affordable 30 or 40 years ago, at around three or four times one's average salary, is now way, way higher. The cost of homes is just so much higher than it used to be. So people are being locked out of the housing market. When people are locked out of the housing market, more and more people are in the rental market. With more and more people in the rental market, rental prices are going up, and it is harder for people to be able to save up for that deposit to get in. That, we know, is one of the fundamental barriers to people being able to access the housing market.

Our policy that was announced before the election was that we were going to allow people to get into the housing market and purchase a home with a deposit of five per cent, or two per cent for single parents. I can't tell you, Deputy Speaker Mascarenhas, how many times the response to, 'What's important to you?' was, 'We'd like to buy our own home,' and I'd say, 'Well, have you heard about our five per cent deposits?' and the response was, 'Actually, yes; we've done our research, and that's one of the things we're thinking about right now.' So, when our incredible and hardworking housing minister announced that we were bringing forward the five per cent home deposits to start on 1 October, it was for the people that I had spoken to in the line; it was for the people in our communities—the hardworking people in Macnamara and right across the country—who just want to be able to buy their own home.

I can tell you that there have been thousands of people across the country beginning the process of accessing the five per cent deposits. There has been such a big interest in this program because we know that, for those people who are unable to build up their deposit because of all of the expensive things that are going on in their world, this will make it possible. It's not easy, but it, hopefully, will be possible for thousands of Australians.

Already, our Home Guarantee Scheme has helped more than 185,000 Australians into homeownership, and this is simply because the average Australian is able to get into the housing market with a lower deposit and they don't have to pay lenders mortgage insurance, which, for many households around the country, means savings in the $30,000 range. This is a massive saving for families and for hardworking Australians. When you think about the sort of response that we've seen from the coalition about how this program is somehow benefiting the kids of billionaires, you really have to ask yourself: What planet are they living on? Have they spoken to anyone outside of their own echo chamber? I know they like to talk about themselves a lot in this place and around the country. They like doing media conferences about the inner sanctum of the Liberal Party and the National Party and whatever's happening in there, but what Australians actually care about is their own home—having a safe place to live in and potentially owning and paying off their own home. Instead of talking down to Australians, like the Liberal Party is doing, we want to lift Australians up. We want Australians to have the aspiration of owning their own home and we want to make it possible, and that is exactly what our five per cent deposit scheme is all about. It's about making it possible for hardworking Australians to own their own home. I couldn't be prouder of this policy.

Zaneta Mascarenhas (Swan, Australian Labor Party) Share this | Link to this | Hansard source

I call for a seconder for the motion.

Matt Burnell (Spence, Australian Labor Party) Share this | Link to this | Hansard source

I second the motion and reserve my right to speak.

Tom Venning (Grey, Liberal Party) Share this | Link to this | Hansard source

The Labor government has commenced its five percent home deposit scheme, which should really be called the 'larger loans for longer' scheme, because that's exactly what this policy does. It drives up house prices, leaving first home buyers paying massive loans for the rest of their lives. But don't take my word for it. Treasury modelling, property experts and economists alike are all sounding the alarm on this reckless scheme. Yet the government has put its blinkers on and dressed up this scheme as a win for first home buyers, but the only winners are the banks. You don't need an economics degree to understand the flaw of this scheme. It's the first economics principle that I learned in university—a concept understood by many Australians, but clearly not by Labor. I seek leave to table this document.

Zaneta Mascarenhas (Swan, Australian Labor Party) Share this | Link to this | Hansard source

Is leave granted?

Matt Burnell (Spence, Australian Labor Party) Share this | Link to this | Hansard source

Leave is not granted.

Tom Venning (Grey, Liberal Party) Share this | Link to this | Hansard source

Supply and demand. Have you ever heard of it? When the demand of a good increases and the supply is not matched, the outcome is higher prices. And it's the same for supply. If you increase supply, the prices go down. All this scheme achieves is an increase in house prices. It allows first home buyers to take one step towards homeownership, while homeownership takes two steps away from them. There will always be winners from this scheme, but it won't be first home buyers; it'll be investors, it'll be the banks and it'll be older Australians who already own their own property. I find it extraordinary that this government has put together a policy for first home buyers that is benefiting everyone except first home buyers. It is simply astonishing.

Encouraging first home buyers to borrow 95 per cent of the home value is not a cause for celebration. It's a fundamental failure. It is a failure from all levels of government, current and former, that we've got to this situation where young Australians must plunge themselves into a lifetime of debt just to own a place of their own. This Labor government talks a massive game on housing, but it has nothing to show for it. Instead of helping Australians into homes, it has buried the housing sector under 5,000 new regulations and delivered a $10 billion Housing Australia Future Fund boondoggle that's fuelling the housing crisis by outbidding Australians for their own homes.

The only way to address a housing shortage is to create supply. But since this government hasn't yet grappled with the concept of supply-side economics, I'd like to demonstrate. I'd like to acknowledge my high school economics teacher, Mr McGuire. He would say, 'Increase right, increase right, increase right.' When you increase supply to the right, prices go down. When you increase demand to the right, prices go up. Labor's first home flop is a nightmare that's leaving younger Australians paying larger loans for longer. It's time for this government to do its economic homework and get on with the job of restoring the dream of homeownership.

Emma Comer (Petrie, Australian Labor Party) Share this | Link to this | Hansard source

Housing is one of the biggest challenges facing Australians today. People are doing everything right, working hard and saving what they can, and yet they still feel that the dream of owning a home is slipping further out of reach. That's why the Albanese Labor government is taking real action that brings that dream back within grasp. Today's motion reaffirms Labor's commitment to help first home buyers. Through our five per cent home deposit scheme, we are helping Australians across the country get into their own home sooner. Under Labor, if you worked hard and have saved up, the government should have your back, not hold you back.

We brought forward the launch of the five per cent home deposit scheme for all first home buyers to 1 October 2025, months ahead of schedule. That means that every Australian first home buyer will be able to buy their first home with just a deposit of five per cent. We're also expanding that scheme. There are no income limits or limits on places, because your chance of owning a home shouldn't depend on being lucky enough to grab a limited number of spots. And, for single parents, we're continuing the Family Home Guarantee, which helps you buy a home with only a two per cent deposit. We're also increasing the property price caps to better reflect the reality of the housing costs in every part of Australia. This is about supporting an entire generation of people who feel locked out of the market.

Our five per cent deposits are already cutting years off the time it takes to save for a home. For a typical first home buyer, it can take up to eight years off the time needed to save for a deposit on a medium-price home, and that saves around $34,000 in mortgage insurance along the way. That's eight years less paying rent and watching prices increase. That's eight years sooner you can start paying off your own mortgage instead of someone else's. And the results are already showing. More than 185,000 Australians have achieved their dream of homeownership through Labor's housing policies, including over 800 people right across my electorate. That's 185,000 families who no longer have to worry about the next rent hike or the next lease ending. As a renter myself, I look forward to the day where I put down a deposit on my own first home, and I'm so glad that the dream has become a reality for so many across my community. I'm grateful that everyday working people in my community now have a fair go.

This challenge didn't appear overnight. For too long, the government has simply tapped out of housing. For most of their nine years in power, the coalition didn't even have a housing minister. They let the problem grow, and now, when Labor is finally taking real action, they're opposing it every step of the way. Australians know they can't trust the coalition on housing. They had nine years to act, and they didn't. In contrast, Labor has already delivered the most ambitious housing agenda in generations. Our $43 billion housing agenda is tackling this challenge from every angle. We're building more homes because more supply means more affordable housing for everyone, whether you're renting or buying. We're also backing the workforce that makes housing possible. Almost 300 construction trade workers in my community are now in training, supported by the increased incentive payments to upskill the next generation of tradies. We're cutting the red tape, training more tradies and investing in the infrastructure needed to unlock more housing.

We're also directly delivering 55,000 new social and affordable homes so that the people who need it most—our essential workers, older women and people doing it tough—have a safe, secure place to call home. The Housing Australia Future Fund is delivering those homes right now—housing for teachers, nurses, cleaners and carers who do the vital work to keep our communities going. In my electorate, 250 new social and affordable homes are opening up in Carseldine, Margate and Deception Bay thanks to our Housing Australia Future Fund. Just last week, I opened 82 new social and affordable homes right in Redcliffe. This was a collaboration between all three levels of government. We must continue to work together to build the homes that our community needs. These beautiful apartments will be the home for older locals who are downsizing or struggling with housing. The downsizing is freeing up larger homes for vulnerable families at risk of or facing homelessness. I met some of the new residents, who are very excited to be moving into their new accommodation—their new home, I should say.

This is what it means to govern for the many and not just the few, to look out for Australians who need a fair go and to make sure the next generation has the same opportunities as the last. We know housing is a big challenge. We know it won't be solved overnight. We also know that real, lasting change comes from government stepping up and not stepping away. In the end, that's what good government is about—helping people to build a better future for themselves and their families.

Rebekha Sharkie (Mayo, Centre Alliance) Share this | Link to this | Hansard source

There is already enormous concern that the government's first home buyer scheme is causing house prices to artificially increase. To recap, the government has created what I and many economists see as a subprime mortgage policy ticking time bomb, where first home buyers can buy a home with a five per cent deposit—and, for single parents, just two per cent. The mortgage insurance for that purchase, between 15 per cent and 18 per cent, is on the hook of the taxpayer should the home buyer default. We don't want anyone to default on their mortgage, but it is a sad reality, and that is why we have mortgage insurance. Mortgage insurance is there, ultimately, to protect the banks. Now it's the taxpayers that are going to be protecting the banks. A Sydney buyer can buy a home of up to $1.5 million with a deposit of $30,000 if they're a single parent. The balance of that mortgage—$270,000—will be covered by the taxpayer. With absolutely no caps on the number of first home buyers that could enter this scheme, and record migration over recent years—for several years now there has been incredibly high migration—we have created an unbelievable set of demands on housing. Yet, despite this, Treasury estimates that this program will increase house prices by only 0.5 per cent.

Domain real estate gurus say that the Sydney median house price grew by 3.5 per cent across the quarter from June to September 2025, with expectations that it will accelerate further in this final quarter of the year. Who in Treasury is accountable for the fact that they come up with these statistics, these calculations, of just 0.5 per cent? What I'm seeing and what many economists are seeing is the pouring of kerosene on a bin fire. The Australian Financial Review reported unprecedented demand on day one of the first home buyer scheme. What does an unprecedented demand do? With anything—bananas, coal, whatever you're selling—unprecedented demand increases the price of the good. According to economist Leith van Onselen from MacroBusiness, the five-city aggregate level saw levels rise by 0.9 of a percent—nearly one per cent in the last 28 days. That's the strongest growth since October 2023. A Lateral Economics report for the Insurance Council of Australia warns that the home guarantee scheme could potentially increase prices from between 3.5 per cent and 6.6 per cent in 2026, with increases to continue for several years afterwards.

The deep concern that I have is that in segments targeted by first home buyers—which are properties defined as those below the individual house caps in every single state and in different regions—the impact is expected to be even greater, with house prices tipped to increase from between 5.3 per cent and 9.9 per cent in one year. This is also causing a distortion in the market. Because this scheme was so rushed and arbitrary decisions were made on what house cap prices are where, in my electorate in the area of Victor Harbor, we're not going to have any first home buyers because the median house price is $740,000. However, they're under the cap of $500,000 for the first home buyer scheme. In Mt Compass, just over 50 kilometres from Adelaide CBD, the median house price is $851,000. It would be under the metro cap if it were applied, but it's not—the country caps applied. However, also just over 50 ks from Adelaide is Sellicks Beach. That does have a median house price that's less than in Mt Compass, but now they have the $900,000 house cap. If you're in Sellicks Beach you're going to see massive increases in house prices. It's distorting the market.

If the government want to fix housing in Australia, they have to look at the demand side and the supply side. What they're doing at the moment is increasing the demand side exponentially. I think we're creating not a dream of home ownership but a nightmare of home ownership for first home buyers. We need to look at who is buying the homes. We need to make sure that it's an 'Australia first' policy—that's what many nations have. We need to look at reducing migration while at the same time increasing our supply.

Kara Cook (Bonner, Australian Labor Party) Share this | Link to this | Hansard source

I am so proud that the Albanese Labor government has delivered five per cent first-home deposits for every first home buyer from 1 October this year. This change will cut years off the time it takes to save for a first home deposit. It will help Australians into their own home sooner, and, because the government will stand behind these loans, first home buyers will no longer be forced to pay tens of thousands of dollars in lenders mortgage insurance. That is real relief, and it is making a real difference to first home buyers in my electorate of Bonner and right across the country.

I have previously spoken in this place about doorknocking in Wishart during the election campaign. I met a young tradie who had just finished his apprenticeship. He told me, with some despair, that he could not see how he would ever be able to afford a home. He said he had a regular savings plan but he was still only halfway to what he needed for a deposit. I told him about Labor's plan for a five per cent deposit, but, at that time, it was still to come into effect. Today, I am proud to say to him and to so many others like him in my community of Bonner that support is now in place. It means that he and thousands of others like him will be able to buy their first home sooner. They'll be able to begin building equity, and they'll have the security and pride that comes from a home of their own.

Before the election, Labor promised to make it easier for Australians to buy their first home, with a deposit of just five per cent. We have delivered on that promise, and we have delivered ahead of schedule. Already, Labor's expanded home guarantee scheme has helped more than 185,000 Australians into home ownership, including 391 people in Bonner. That's 391 individuals and families who will now have a place to call their own, a place to build their lives, raise their children and put down roots in the communities that they love. This program is transformative. For single parents, Labor continues the Family Home Guarantee scheme, allowing them to purchase a home with as little as a two per cent deposit. This is life-changing support and giving single parents—so often mothers—the chance to build stability and security for their children.

We will help more Australians into homeownership, but we must also support those who are renting or facing housing insecurity. That is why Labor has delivered rent relief for those doing it tough. Since coming to government, we have delivered back-to-back increases to the maximum rates of Commonwealth rent assistance—an increase of almost 50 per cent. Today, 6,785 people in Bonner receive Commonwealth rent assistance. That is real help for local families, pensioners and students who are struggling with the cost of rent. We've also taken action for those facing the most serious housing challenges—women and children escaping domestic and family violence. Through the Albanese government's crisis accommodation programs, we are delivering 24 new homes in Wynnum Manly and Mount Gravatt in my electorate of Bonner. These homes are being built under the Safe Places Emergency Accommodation Program and the Crisis and Transitional Accommodation Program, giving families somewhere safe to stay when they need it most. Every Australian deserves a safe place to call home.

We are also building 100,000 homes exclusively for first home buyers to give them a fair chance in what can be a competitive market. Step by step, Labor is delivering. We know that Australia's housing challenge was decades in the making, and we will not solve it overnight. But we are acting with determination and with purpose. This government made a promise to make the dream of homeownership more achievable, and we are delivering on that promise. We are cutting the time it takes to save for a deposit. We are saving first home buyers thousands of dollars in their mortgage insurance payments. We are providing rent relief for those who need it most. We are building homes for women and children escaping violence. And we are also training the next generation of builders and tradies who will help our housing industry stay strong. Housing is not just about bricks and mortar; it's about security, and it is about dignity. It's about opportunity, and it's about giving every Australian the chance to build a future, to raise a family and to know that their hard work will be rewarded.

Elizabeth Watson-Brown (Ryan, Australian Greens) Share this | Link to this | Hansard source

I want to talk today about what Labor's housing policy really means for everyday Australians: $24 billion in profit for the banks. That's what Labor's latest housing policy is really about. Let's break down the details of how Labor is forcing first home buyers to risk their financial future to enrich the big banks. The current median house price in Australia is around $860,000. That's up by almost $20,000 in the September quarter. Before the introduction of this new policy, by the way, assuming a standard mortgage rate and a five per cent deposit, a first home buyer will pay an additional $140,000 in interest. In total, first home buyers will pay banks an extra $24 billion in interest during the first five years of this policy alone. The same modelling suggests Labor's five per cent deposit scheme could increase house prices by 10 per cent in the first year.

This policy doesn't address any of the issues that have caused the housing crisis. It doesn't address negative gearing or capital gains tax discounts for property investors, it doesn't build public housing and it doesn't help first home buyers because it was never designed to. This policy does one thing: it transfers wealth from everyday Australians to massive corporations. Every time we Greens get up here and say, 'Maybe we should actually build public housing,' we get told, 'Don't be so ridiculous; don't be silly; it's so expensive. How can the government possibly build something at that scale?' Putting aside the fact that governments used to build masses of public housing—around 25 per cent of all new stock post-World War II—it's also a matter of priorities: what the government is willing to spend money on and what it's not, like the AUKUS agreement, where we're handing billions and billions of dollars over to the United States for submarines that might never be delivered, as well as—get this—public housing for US troops and private defence contractors. Unbelievable!

Let's do a little thought experiment. How many submarines would $368 billion buy us? How many houses would $368 billion build? Under the AUKUS deal, we're paying $368 billion for submarines that may not happen. That's right, AUKUS is going to cost Australians $36 million every day for 25 years. Now, the ABS has the average cost to build a house at a bit under $400,000. If the government were to build public housing like we used to, we could do it much, much cheaper, but let's assume $400,000. This $368 billion could purchase one, two, three, four, five, six, seven, eight submarines. Or $368 billion could build one, two, three, four, five, six, seven, eight, 965,000 homes. That's right, we could clear the entire waiting list for social housing and take huge steps towards solving the housing crisis.

Meanwhile, in capital cities around Australia, median house prices have increased by $35,000 in the last three months. They increased by $26,000 in the three months before that. Labor and the LNP would clearly rather give billions of dollars to US weapons manufacturers than deal with the housing crisis they created.

Now, let's be very clear, a policy that accelerates house price growth is not a housing policy; it is an enrichment policy for Labor's donors in the property development and banking industries. First home buyers are going to be stuck paying higher prices with incredibly high repayments and, should the worst happen and they're unable to meet those repayments, it will be the Australian taxpayers picking up the bill, not the banks.

The Greens and I will continue to push for real solutions to this crisis, such as scrapping the tax handouts for property investors that help them outcompete first home buyers—those tax handouts actually help property investors outcompete first home buyers—along with a mass build of housing that people can actually afford.

Debate adjourned.