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3w ago

Labor and Coalition Clash Over Housing Policies as Election Nears

Labor proposes a $10 billion plan for 100,000 homes and 5% deposit guarantees, while the Coalition offers tax-deductible mortgage interest and a $1200 tax offset.

Australian Liberal Party and opposition leader Peter Dutton gestures as he speaks at his party's coalition campaign launch ahead of the May 3 federal election in western Sydney, Australia, Sunday, April 13, 2025. (AP Photo/Mark Baker)
Australian Liberal Party leader Peter Dutton, right, stands with his wife, Kirilly Brumby, and children, Rebecca, Harry and Tom following his party's coalition campaign launch ahead of the May 3 federal election in western Sydney, Australia, Sunday, April 13, 2025. (AP Photo/Mark Baker)
Australian Liberal Party and opposition leader Peter Dutton gestures as he speaks at his party's coalition campaign launch ahead of the May 3 federal election in western Sydney, Australia, Sunday, April 13, 2025. (AP Photo/Mark Baker)
Australian Liberal Party and opposition leader Peter Dutton waves after speaking during his party's campaign launch ahead of the May 3 federal election in western Sydney, Australia, Sunday, April 13, 2025. (AP Photo/Mark Baker)

Overview

  • Labor has pledged $10 billion to build 100,000 homes for first home buyers and expand its 5% deposit guarantee to all buyers, eliminating the need for lenders mortgage insurance.
  • The Coalition proposes allowing first home buyers of newly built homes to deduct mortgage interest on the first $650,000 for five years, with income caps of $175,000 for singles and $250,000 for couples.
  • The Coalition also announced a $1200 tax offset for eligible taxpayers earning up to $144,000, as part of a broader cost-of-living relief package.
  • Economists warn both policies could exacerbate housing affordability issues by increasing demand without adequately addressing supply constraints.
  • Housing affordability has emerged as the central issue of the May 3 election, with both parties using their housing policies to appeal to younger voters and first-time buyers.