25/03/2025
The federal government has announced changes to its shared equity home ownership program to help more people buy homes. As part of the 2025–26 budget, the Labor government will raise the income limits and property price caps for the Help to Buy scheme.
This program allows first-time home buyers to receive government support for purchasing a home. The government will contribute up to 40% of the price for new homes and 30% for existing homes. Buyers need to provide at least a 2% deposit and cover other costs like stamp duty.
Over four years, the scheme will help 40,000 eligible first-time buyers across the country. The income cap for individuals will increase from $90,000 to $100,000, while the cap for joint applicants and single parents will rise from $120,000 to $160,000. Property price limits will also be adjusted based on the average house price in each state, giving buyers more options. For example, in NSW, the cap will be set below the state's median home price of $1.3 million.
To support these changes, the government is increasing its investment in the scheme from $5.5 billion to $6.3 billion. Housing Minister Clare O’Neil said the goal is to help working Australians buy homes by making the process more affordable.
In addition, the budget includes $54 million to boost the construction of prefabricated and modular homes, which can be built up to 50% faster than traditional homes. Of this, $49.3 million will go to state and territory governments to expand this industry, while $4.7 million will be used to create a national certification process for quality control and faster approvals.
The Housing Industry Association (HIA) welcomed these changes, saying they show a positive move toward more affordable housing. HIA managing director Jocelyn Martin praised the expansion of the Help to Buy scheme, as it will help more people enter the housing market. She also emphasized the need for more housing supply and further reforms to meet the national target of 1.2 million new homes in five years.
Meanwhile, as the 2025 federal election approaches, the Coalition’s proposal to let first home buyers withdraw $50,000 from their superannuation has received both support and criticism from industry experts.
