The Coalition's Housing Plans ahead of the Election
The Short Version
The Coalition is putting home ownership front and centre in its 2025 campaign, aiming to unlock 500,000 new homes, cut red tape, ban foreign buyers, and offer new tax breaks and superannuation access for first-home buyers.
Boosting supply: 500,000 new homes
- Investment in infrastructure: The Coalition will unlock up to 500,000 new homes by investing in critical infrastructure like water, power, sewerage, and roads at new housing sites.
- Clearing approval backlogs: Promises to fast-track delayed housing developments held up by Labor's planning delays.
- Trade workforce: A target of 400,000 apprentices and trainees in training, with new incentives for small businesses to hire and train tradies.
- Red tape freeze: A 10-year freeze on changes to the National Construction Code
Easing housing demand with immigration control
- Ban foreign investors and temporary residents from buying existing homes for two years
- Reduce migration: Cut the permanent migration intake from 185,000 to 140,000 for two years, then gradually increase it to 160,000 over four years
- Lower student numbers: At least 30,000 fewer foreign students per year, and increased student visa fees
- They estimate this will free up 40,000 homes in the first year, and over 100,000 within five years.
New support for first-home buyers
- Mortgage interest tax deduction: First home buyers who purchase a new property to live in, can claim a tax deduction for the interest payments on the first $650,000 of their mortgage for the first five years of their mortgage.
- Applies to only newly built houses and apartments (including off the plan)
- Income limit: $175,000 for individuals, $250,000 for couples
- No cap on overall mortgage size or property price
Superannuation -for-housing
- Access up to $50,000 from superannuation for a home deposit
- Money must be repaid into superannuation upon sale of the home
Expanded Home Guarantee Scheme:
- Continue support for 5% deposit home purchases
- Already helped 200,000 Australians
Mortgage access reform
- Ease restrictions and improve access to mortgages - targeting "responsible but realistic" loan criteria.
What do critics say?
While many economists welcome tax relief for homebuyers, some warn the mortgage interest deduction could push up prices if not matched by rapid supply growth.
Migration cuts, while popular in some voter segments, may strain labour markets and university funding. The super-for-housing policy also sparks debate over retirement outcomes.
The final pitch
The Coalition wants to build more, ban more, and help more Australians buy a home - by slashing migration, offering tax incentives, and removing barriers to lending.
Whether these policies can fix a generational affordability crisis remains to be seen.
source: https://view.com.au/news/national/explainer-the-coalition-s-housing-plans-ahead-of-the-election/