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The ceiling on New Home Guarantee property price caps for the home ownership scheme could be raised on 1 July 2022, if the Coalition remains in power after the upcoming federal election.
A new statement from the Liberal Party website, courtesy of Prime Minister Scott Morrison and the Minister for Housing Michael Sukkar, is upping the ante in the lead-up to next month’s election, revealing higher price caps will be introduced across the board from the new financial year.
According to the statement, the adjusted price caps take into account the 50,000 places per year expansion of the Home Guarantee Scheme as announced in the federal government’s 2022-23 budget, particularly in regional areas where the new Regional Home Guarantee is open to non-first home buyers.
That announcement followed the Labor Party’s affirmation to continue the scheme if it were elected into power and also saw it pledge to broaden first home loan assistance to regional Australians and review and update the price caps on a six-monthly basis and improve the process of reallocating unused guarantees.
According to Mr Sukkar, the adjusted price caps “would help guarantee more Australians can achieve the dream of owning their own home”.
“By adjusting the price caps for the Home Guarantee Scheme, we are ensuring Australians have more options when buying a home,” he said.
Explaining further, he said: “Because 41 per cent of scheme-backed loans are ahead of their pay back schedule, we are confident these adjusted price caps strike the right balance.”
According to the Liberal Party, which is currently in caretaker mode until the outcome of the election is announced, the new price caps “will ensure that the supply of new builds in regional Australia is supported, helping ease supply constraints that are being felt outside of the major cities”.
“The adjusted caps will also assist in accommodating larger families under the Family Home Guarantee,” it said.
Under the heightened caps, home buyers could potentially purchase homes valued at up to $250,000 more than they could under the current scheme.
| FY2021-22 | FY2022-23 | |||
| Capital city and regional centre | Rest of state | Capital city and regional centre | Rest of state | |
| NSW | $800,000 | $600,000 | $900,000 | $750,000 |
| Vic | $700,000 | $500,000 | $800,000 | $650,000 |
| Qld | $600,000 | $450,000 | $700,000 | $550,000 |
| WA | $500,000 | $400,000 | $600,000 | $450,000 |
| SA | $500,000 | $350,000 | $600,000 | $450,000 |
| Tas | $500,000 | $400,000 | $600,000 | $450,000 |
| ACT | $500,000 | $750,000 | ||
| NT | $500,000 | $600,000 | ||
The REIA has weighed in on the scheme, with REIA president Hayden Groves commenting that the increasing of price caps “is a great help in easing affordability”.
“Increasing the price caps for homes available under the scheme means more people have more options when purchasing a home, and the new caps help accommodate larger families under the Family Home Guarantee,” he said.
The Tasmanian government’s Minister for State Development, Construction and Housing Guy Barnett has also welcomed the announcement.
According to him, “Prime Minister Scott Morrison shares the Tasmanian government’s commitment to help more Tasmanians and Tasmanian families into homes and today’s announcement will do just that.”
He said the price cap increase would complement current actions being taken by the state government aimed at increasing supply.
“The initiative announced today will build on the stamp duty and first home-owner grants and concessions announced by the Tasmanian government and measures to further accelerate land supply, by extending our Headworks Holiday program,” Mr Barnett said.
He also revealed that the Tasmanian government would be extending the thresholds and eligibility for its own home share program, the “Housing Market Entry program”.
ABOUT THE AUTHOR
Grace Ormsby
Grace is a journalist across Momentum property and investment brands. Grace joined Momentum Media in 2018, bringing with her a Bachelor of Laws and a Bachelor of Communication (Journalism) from the University of Newcastle. She’s passionate about delivering easy to digest information and content relevant to her key audiences and stakeholders.
