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.