New figures have revealed that 51,000 non-citizens have utilized the Australian government's 5 per cent deposit scheme, prompting a strong reaction from opposition leader Angus Taylor, who has vowed to ban the practice if elected.
Senate Estimates Hearing Reveals Numbers
The data emerged during a tense Senate estimates hearing late Tuesday night, where Liberal frontbencher Andrew Bragg repeatedly clashed with Labor's Tim Ayres over the scheme's eligibility criteria. Initially, government officials provided a lower figure before clarifying that 51,000 non-citizens had accessed the program.
The scheme, designed to assist first home buyers with a minimum 5 per cent deposit, has the federal government acting as a guarantor. Under this arrangement, taxpayers incur a cost if the homeowner defaults on their mortgage.
Political Clash Over Eligibility
Senator Bragg questioned why the scheme, originally intended for Australian citizens, had been expanded to include non-citizens. "Okay, so I guess a lot of people look at this and say, 'why have you expanded that scheme for Australians to become first homeowners to people who aren't Australian citizens?'" he said.
In response, Senator Ayres defended the 2023 expansion to permanent residents, stating, "Australians who are permanent residents have settled permanently here in Australia. Many of them are in our suburbs, in families where they are grandparents, taxpayers, in our defence forces. They are part of the Australian community, and we have taken steps in terms of temporary migrants, because we do think that's appropriate."
The debate intensified as Senator Bragg insisted, "These are Australian taxpayers," to which Senator Ayres replied, "Well, they're not Australians," highlighting the distinction between citizens and permanent residents.
Coalition's Pledge to Close Scheme
Liberal leader Angus Taylor has announced that a Coalition government would close the Australian Government 5% Deposit Scheme to "anyone but Australian citizens." He expressed shock at the high number of non-citizens accessing the program, which currently represents about 13 per cent of all users.
"A loan scheme, financed by the Australian taxpayer, should be reserved for Australian citizens," Mr. Taylor said, vowing to implement the change if elected.
One Nation's Stance
Pauline Hanson, leader of One Nation, has called for a complete ban on non-citizens owning homes in Australia. "Foreigners who aren't Australian citizens shouldn't own Australian homes," she wrote on X. Senator Hanson has long advocated for this policy shift, arguing that foreign investment rules are selectively enforced.
"We're often told that foreigners own barely 1 per cent of private residential property in Australia," she told Parliament. "The implication is that it's not a problem, but, in real numbers, it's estimated there are more than 108,000 dwellings in Australia that aren't owned by Australians."
She proposed a permanent ban on foreign ownership of residential property, giving foreign owners two years to sell. "If the property is not sold, it should be repossessed by the federal government. We must put Australia and Australians first," she added.
Foreign Ownership Statistics
Recent data from the Australian Taxation Office reveals that Chinese nationals own 67 per cent of the more than 40,000 Australian residential properties registered as foreign owned. Mainland Chinese investors account for 23,500 properties, with an additional 3,500 from Hong Kong.
Labor has announced a two-year ban on foreign investors purchasing existing Australian homes, aiming to address housing affordability concerns.
