Record Housing Assistance: Government Measures Across Australia
Australia has witnessed an unprecedented surge in government assistance aimed at making housing more accessible, with first home buyers in some states receiving up to $56,000 in combined benefits. This marks a historic peak in housing support, including measures that even extend to foreign buyers. The support spans significant stamp duty concessions, enhanced grants, guarantee schemes, and record levels of rental assistance.
Dr Asti Mardiasmo, PRD’s chief economist, described the multifaceted approach as essential, given the complexity of solving housing affordability challenges. She emphasised the need for a range of policies targeting different angles, including property price caps for high-cost areas. “While we’re in a better place than previous years, perfection in housing policy remains elusive, and we should focus on strategising rather than blaming,” Dr Mardiasmo noted.
Federal Housing Policies: 2024/25 Changes
First Home Guarantee (FHBG): 35,000 places are available, allowing eligible buyers with a 5% deposit to bypass lenders mortgage insurance. Applicants must be owner-occupiers and meet price caps.
Family Home Guarantee: Single parents and guardians with dependents can access housing with a 2% deposit, with 5,000 places available for 2024/25.
Help to Buy Scheme: From November 2024, this shared equity scheme provides government contributions of up to 40% for new homes and 30% for existing homes, capped by purchase prices and income limits.
Foreign buyers face increased fees under the Foreign Acquisitions and Takeovers Fees Imposition Amendment Act, with minimum and maximum application fees tripling for purchases under $1 million and over $40 million, respectively.
State-Specific Housing Measures
Queensland: Offering some of the country’s most generous assistance, first home buyers purchasing a $500,000 property can access up to $56,000 through a $30,000 First Homeowner Grant (available until June 2025), stamp duty exemptions, and lender mortgage insurance savings.
Victoria: A new policy eliminates stamp duty for off-the-plan properties across all price thresholds, offering significant savings for buyers of apartments, units, and townhouses.
New South Wales: First home buyers continue to benefit from a $10,000 grant, while surcharge purchaser duty for foreign buyers increases to 9% in 2025.
South Australia: First home buyers can now access $15,000 grants and full stamp duty exemptions for new homes, with no price caps.
Western Australia: The state has increased the first homeowner transfer duty exemption to $450,000 and introduced a $5,000 incentive for converting vacant properties into long-term rentals.
Tasmania: The First Homeowner Grant remains at $10,000 for new builds.
Northern Territory: First home buyers can claim $50,000 under the Homegrown Territory Grant, with no restrictions on income or property value, including mobile and transportable homes.
Australian Capital Territory: Eligible buyers can access up to $34,270 in concessions under the First Homeowners Concessional Scheme.
Addressing Rental Pressures
The Australian Bureau of Statistics noted that Commonwealth Rent Assistance (CRA) prevented a sharper rent increase in 2024, with rental inflation reduced from 8.1% to 6.7%. Meanwhile, Queensland’s new rental reforms limit increases to once every 12 months and impose stricter rules on advertising and accepting advance rent payments.
