Labor’s scheme gained’t remedy the housing disaster, it is going to drive up costs

Labor’s Housing Minister Clare O’Neil’s announcement at the moment to convey ahead ensures for a 5% deposit for first-home patrons to keep away from mortgage insurance coverage will solely drive up home costs for Australians making an attempt to get into the market.

We have seen at the moment Labor transfer its first housing invoice (Defence Housing Australia Amendment Bill 2025) which, extremely, builds public houses for US troops and defence contractors. In the midst of a nationwide housing disaster, the place are Labor’s priorities for Australians?

Australia’s housing disaster can’t be mounted till the Government tackles the important thing driver, and that’s, winding again tax reductions for rich property traders that lock out first-home patrons and pressure rents to skyrocket.

Lines attributable to Greens spokesperson for housing Senator Barbara Pocock:

“This is a furphy designed to sound good however truly will proceed to drive up home costs – turbocharging greater costs and larger money owed for first-home patrons. Experts agree these demand-side schemes simply drive costs up, the one ones who profit from this scheme are the banks and property traders.

“People will nonetheless be borrowing 95 p.c of their mortgage and with median property values at eight occasions the everyday annual family revenue, that leaves households extremely susceptible to large repayments. 

“We want actual motion on housing, not tinkering, and which means winding again tax breaks for rich property traders and constructing reasonably priced homes within the locations the place Australians want them.

“This scheme gained’t assist first-home patrons. Economists and even Treasury’s personal modelling say this scheme will pressure home costs to go up, which can go away extra individuals in greater ranges of debt. 

“The Greens will not stand in the way in which of issues that goal to assist first-home patrons. However, the Government has to have a look at the larger image as a result of home costs are skyrocketing and extra demand-side measures are solely going to make that downside worse. 

“Our tax system rewards rich property traders and pushes up costs. Every day that unfavorable gearing and the capital good points tax low cost keep in place is one other day that first-home patrons are outbid by property traders at auctions across the nation. 

“The Government has a real opportunity in this progressive parliament to fix the housing crisis and they must take it, otherwise generations will be locked out of affordable housing forever.”