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Opposition Leader Peter Dutton has vowed to boost funding for stalled housing projects and implement large-scale cuts to Australia’s immigration intake during his budget reply speech this evening. See what this means for Australia’s real estate sector.
It follows Labor’s budget earlier in the week, which included expanding the Help to Buy scheme, an investment in more “efficient” construction methods, and amending foreign investment regulations.
Prime Minister Anthony Albanese is expected to call a federal election for 3 May, with an announcement anticipated tomorrow (28 March).
In his budget reply speech, Dutton reaffirmed the Coalition’s flagship first home buyer policy, allowing first home buyers to access up to $50,000 of their superannuation for a home purchase.
Speaking in Parliament, Dutton argued that the proposal was critical for the welfare of young Australians “because it’s better to get into a home sooner.”
The policy was initially unveiled at a Liberal Party conference in Victoria in January, where Dutton highlighted the increasing hardships faced by Australians looking to secure real estate: “Entering the property market shouldn’t be limited to those who can rely on the bank of mum and dad.”
During his speech, Dutton also pledged to cut immigration by 25 per cent, arguing that increased housing demand – coupled with the government’s slow progress in delivering the 1.2 million homes outlined in the National Housing Accord – has driven up both rental and property prices.
“In its first two years, the government brought in a million people through the migration program. That’s 70 per cent more migrants than in any two-year period in Australia’s history,” Dutton said.
“Of course there will be consequences. And yet after three years in power, the Albanese government hasn’t delivered a single additional new home built under its failed housing policies.
“I don’t want young Australians locked out of the property market or having to rely on the bank of mum and dad.”
The Coalition also committed to restricting foreign ownership of established homes. Under this policy, foreign investors and temporary residents would be barred from purchasing existing properties for a period of two years.
Now, that’s the demand side done. Turning to supply …
With government and industry falling behind in the delivery of the National Housing Accord, Dutton announced a $5 billion package to restart stalled housing projects, supporting the delivery of a projected 500,000 new homes.
The Coalition also plans to incentivise more Australians to enter the building and construction industry with new small and medium business support packages. Small and medium businesses that take on a new apprentice or trainee in “critical skills areas” will receive a $12,000 incentive payment for the first two years of training.
The announcements have received mixed reactions from industry.
The proposal to increase the number of Australians receiving trades training has been given a nod by Housing Industry Association (HIA) managing director, Jocelyn Martin.
“The financial support outlined by the Coalition for employers to take on an apprentice has the potential to support hundreds of thousands small businesses in our sector to take on an apprentice and support them through their trade to completion,” Martin explained.
“HIA welcomes the Coalition’s commitment tonight for small businesses and calls on all parties to match this.”
However, not all aspects of the Coalition’s housing policies have been well-received.
The Super Members Council (SMC) warned that allowing first home buyers to tap into their superannuation could exacerbate affordability challenges by inflating house prices.
“Raiding retirement savings for house deposits would just unleash a supercharged price hike in house prices, not create more new home buyers,” SMC CEO Misha Schubert said.
“That would mean home buyers in future would have to pay higher repayments on bigger mortgages for longer, worsening housing affordability and cost-of-living pressures on younger Australians.”
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