Bringing forward expanded first home buyer deposit scheme will make an ‘enormous difference’, Albanese says
Anthony Albanese says bringing the 5% deposit expansion forward by three months will make an “enormous” difference.
To quickly recap – the expansion removes the income caps, and means any first home buyer can access the scheme. It also increases the house price cap across the country (because we know how quickly those house price are rising).
On ABC’s RN Breakfast, Albanese’s running through the numbers, and the talking points. He says those using the scheme should avoid about $1.5bn in potential mortgage insurance costs over the next year.
I think this will make an enormous difference, together with the announcements that we’ve made on the weekend of pausing the National Construction Code for four years, more prefabricated housing, and the fast tracking of some 26,000 homes that have been stuck in the approvals process.
Key events
Pacific nations will ‘make their own decisions’ on recognising Palestinian statehood, PM says
Albanese says the government will continue pushing for a two-state solution, as Israel pushes ahead with its military campaign in Gaza.
Sara asks whether there’s more the government can do to help stop the conflict. Albanese says Labor has advocated “directly to the Israeli government, but also through our vote in international forums” to get aid into Gaza, advocate for a ceasefire, and get the hostages released.
But what about other nations across the Pacific region?
We know New Zealand and several other Pacific nations have so far not joined Australia and other nations including France and the UK in recognising Palestinian statehood.
Albanese won’t bite when asked whether Australia has raised Palestinian recognition to those other nations.
They’re sovereign states, and I welcome their sovereignty … and they’ll make their own decisions. Australia will make our decisions without concern for anything other than our national interest and for doing the right thing.
Israel’s deputy foreign minister, Sharren Haskel, who has been a vocal critic of Australia, will soon be visiting the Pacific region – which you can read more about here:
Roundtable about ‘future issues’ while government focused on delivering election promises, Albanese says
Moving on to the productivity roundtable from last week, the question goes to how much appetite Labor has for reform that it didn’t take to the last election.
It’s a big question in the political sphere at the moment – whether a party’s mandate is just for what it promises at an election, or goes much further.
Labor has seemed pretty unwilling to introduce tax policy above the changes to superannuation tax concessions. Albanese says:
Well, the economic roundtable wasn’t about just this year or this term, it was about future issues, enabling them to be raised in a way that wasn’t playing the old rule-in, rule-out game. What we are focused on, in the immediate sense, is the reforms that we took to the election.
Sara asks the PM about a warning from the Grattan Institute CEO – who was at the roundtable – saying Australians will have to expect lower service delivery from the government if taxes aren’t raised. Albanese accuses her of “academic” speak.
Academics talk in academic words. What I do is live in the real world, and in the real world my government’s focused on delivering for people.
RN Breakfast’s Sally Sara points out that the Coalition had its own policy to pause the national construction code, which it announced during the election, and which Labor had criticised.
So what’s different now?
Albanese says Labor’s plan is to pause changes to the code until mid-2029, rather than the Coalition’s plan which would have been a pause for up to 10 years.
They had a plan that was for longer, but at the same time, they were slashing support for housing.
Bringing forward expanded first home buyer deposit scheme will make an ‘enormous difference’, Albanese says
Anthony Albanese says bringing the 5% deposit expansion forward by three months will make an “enormous” difference.
To quickly recap – the expansion removes the income caps, and means any first home buyer can access the scheme. It also increases the house price cap across the country (because we know how quickly those house price are rising).
On ABC’s RN Breakfast, Albanese’s running through the numbers, and the talking points. He says those using the scheme should avoid about $1.5bn in potential mortgage insurance costs over the next year.
I think this will make an enormous difference, together with the announcements that we’ve made on the weekend of pausing the National Construction Code for four years, more prefabricated housing, and the fast tracking of some 26,000 homes that have been stuck in the approvals process.
Nimby v Yimby debate over Woollahra station development
In the leafy suburbs of Woollahra in Sydney’s east (one of the most expensive suburbs in the country) – the housing debate is in full force.
The NSW government is looking at reviving the old unfinished Woollahra train station, which would open up higher density housing around it. Everyone’s weighing in this morning.
Clare O’Neil credits the premier, Chris Minns, for “stepping up” and showing some “mettle” against the nimbys (“not in my back yard” advocates).
Politicians in this country have to show some mettle on this one. This [Woollahra] is 8km from the city, it’s fantastically connected through public transport, it’s a place where lots of young people are going to want to live, and this is going to give them that opportunity.
Asked whether the community should just “suck it up”, O’Neil says she wouldn’t be quite so rude as to say it in that way, but essentially … yes they do.
Over on Sunrise, frontbencher Tanya Plibersek and Nationals MP Barnaby Joyce were tussling on the issue. Plibersek also welcomed the move by the Minns government.
You have to make sure that every part of a capital city is contributing to those housing targets. There is no free pass for some suburbs like Woollahra.
Joyce isn’t quite so enthusiastic, and accuses Plibersek of supporting the apartment constituents with all “the new shade they’re about to get”.
Pausing national construction code will not mean increase in building defects, housing minister says
Clare O’Neil, the housing minister, is doing the media rounds this morning – touching down at ABC News Breakfast to promote the 5% deposit scheme.
But affordability is also linked to supply – another issue the government has to deal with.
The government has promised to build 1.2m homes over five years to June 2029, a target they’re currently behind on. They’re hoping announcements over the weekend to pause changes to the national construction code – cutting red tape – and reducing times for environmental approvals for housing will improve the trajectory. O’Neil said:
We committed to roll out 5% deposits to every single first home buyer in the country, we would do that on 1 January, but we can help people faster than that, so we’re bringing it forward to 1 October. This will help tens of thousands of more young people in the market every year.
Asked whether pausing the code will see an increase in building defects, O’Neil says the government would “never allow that to happen”.
What we’ve done on the construction code is say safety defects or issues that will cost consumers will be fixed. We’re freezing the code just for non-essential changes. If we find a safety problem in our building approach, we would not hesitate to fix that.
Labor brings forward 5% deposit scheme for first home buyers to 1 October
The 5% deposit scheme, where first home buyers can access a home with a smaller deposit guaranteed by the government, was a Labor election promise.
Currently, only a limited number of people are able to access the scheme, which is income tested. From 1 October, it’ll be accessible for all first home buyers – but only up to certain house price caps (so you can’t bid for a $2m Sydney house under the scheme).
In Sydney, that price cap is $1.5m, in Melbourne it’s $950,000 while in Brisbane it’s $1m.
The expanded access was due to come into effect on 1 January next year – but it’s been brought forward slightly.
The prime minister, Anthony Albanese will be spruiking it to the media a bit later this morning.
Good morning
Krishani Dhanji
Krishani Dhanji here with you for the busy sitting week ahead.
After a week of the government’s economic roundtable, I’m sure politicians will be at their most productive today … but then again, perhaps not.
First up on the agenda in the House of Representatives today will be debating Barnaby Joyce’s bill to end net zero – which we know won’t get anywhere, but which Labor is using to split the Coalition (you can read a bit more on that here).
But in the wake of that roundtable, Labor has made a few housing announcements over the weekend, including a pause to the national construction code, and a start date for the expanded access to 5% deposits for first home buyers from 1 October (more details on that shortly).
I’ve got a large coffee, I hope you’ve got some caffeine too – let’s get this ball rolling.