ABC News Daily The election housing policies explained
Apr 16, 2025
Michael Janda, ABC business editor, brings his expertise on the housing crisis to the discussion. He delves into new policies unveiled by Peter Dutton and Anthony Albanese aimed at helping young Australians secure their first homes. The talk critiques the effectiveness of proposals like five percent deposits and tax deductions for mortgage interest. Janda emphasizes the need for a focus on supply rather than just demand, while shedding light on the ongoing challenges young Australians face in navigating the housing market.
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Coalition's Mortgage Interest Tax Break
- The Coalition proposes a tax deduction on mortgage interest for new build homes capped at $650,000.
- This effectively saves significant amounts, especially benefiting higher income earners who pay more tax.
Labor's Low Deposit Scheme Explained
- Labor proposes allowing first home buyers to purchase with a 5% deposit instead of the usual 20%, reducing wait time for deposits.
- Smaller deposits mean larger mortgages and repayments, so buyers must still afford repayments.
Labor's Housing Supply Investment
- Labor plans to spend $10 billion building 100,000 homes dedicated to first-home buyers, combining grants and zero-interest loans.
- The supply increase is gradual, taking up to eight years, reflecting the slow pace of affordable home building.