Labor to begin process for 5 per cent deposit scheme for first homebuyers on homes up to $1.5 million

Labor will fast-track the start date of its 5 per cent first homebuyer guarantee scheme to October 1, instead of January 1, which will eliminate stamp duty payments for thousands of households looking to enter the housing market. The uncapped scheme will allow an estimated 70,000 households to purchase their first home each year and covers homes of up to $1.5 million for properties in Sydney. First-home owners can take advantage of the scheme regardless of their income, and single parents can purchase a home with a further reduced 2 per cent deposit. Labor states that a first homebuyer can buy a medium home priced at $844,000 with just a $42,000 deposit, shaving eight years off the time it takes to save for a deposit, and up to $34,000 in lender’s mortgage insurance. Property price limits are dependent on the location of the home but are significantly higher than the current caps under the Home Guarantee Scheme. Property caps are $1.5 million in Sydney and regional NSW centres, $950,000 in Melbourne and regional Victorian hubs, and $1 million in Brisbane and regional Queensland centres. Properties in Perth are capped at $850,000, Adelaide at $900,000, the ACT at $1 million, and Hobart at $700,000. Outer regional centre homes have lower price caps, ranging from $400,000 for Christmas Island and the Cocos (Keeling) Islands to $800,000 in NSW. Prime Minister Anthony Albanese said the scheme, which he promised ahead of the election, would “help young people and first home buyers achieve the dream of home ownership sooner.” “Bringing the start date of our 5 per cent deposit scheme forward will do just that,” he said. “Getting more Australians into their own home quicker, while saving them money along the way. “Labor was re-elected with a clear mandate to bring down the deposit hurdle for first home buyers, and we’re delivering.” Housing Minister Clare O’Neil, who on Sunday announced a four-year pause to the National Construction Code (bar essential safety and quality updates), said the deposit scheme would help “level the playing field” and get renters into their own homes. “It’s just not right that an entire generation of young Australians have been locked out of the housing market – saving for decades while paying off someone else’s mortgage. So Labor’s changing it,” she said. “Yesterday we announced reforms to unlock tens of thousands of new homes and today we’re announcing changes to help tens of thousands of first home buyers get into home ownership.” Over the next sitting fortnight, Labor will pass its legislation enshrining penalty rates and continue its election promise to cap prescriptions listed on the PBS to $20 and $7.70 for concession holders. However, Treasurer Jim Chalmers confirmed on Sunday that Labor would not introduce its controversial plans to hike taxes on super balances over $3 million to 30 per cent, telling the ABC, “we’ve still got time,” as the changes won’t be calculated until mid-2026. Teal MP Zali Steggall will also introduce a bill calling for an independent National Climate Change Risks Assessment every five years, which will coincide with National MP Barnaby Joyce’s bill to repeal the 2050 Net Zero targets.