The Opposition has strongly criticised Labor's five per cent deposit scheme, arguing that it is adding further pressure to an already strained housing market as Australia falls nearly 100,000 homes short of its building target.
The federal government has set an ambitious goal of delivering 1.2 million homes over five years, but so far only 260,000 have been completed.
Deputy Opposition Leader Jane Hume stated that the government's flagship first home buyer deposit scheme is injecting additional demand into an already constrained system.
“Labor have failed to meet every single milestone that they’ve set themselves,” Hume said. “They’ve let migration run out of control. That’s, of course, putting pressure on houses. That five per cent deposit scheme... I think your viewers would be astounded to learn, is open to people that aren’t Australian citizens. So that’s putting even more pressure on our housing system.”
Health Minister Mark Butler pushed back against the criticism, defending the scheme as a necessary tool to help first-home buyers enter the market sooner.
“Just think you would otherwise have to spend more than a decade saving up your deposit,” Butler said. “This is literally cutting a decade off the time that young people need to save for that deposit.”
Butler rejected claims that the policy is broadly open to non-citizens, explaining that while it is technically true, it only applies to permanent residents who have lived in Australia for an extended period.
“We’ve recognised, as the former government would have, are permanent residents in Australia who will be on a path to citizenship for the scheme. So, you know, that sort of red herring, frankly, doesn’t do the Coalition any justice,” Butler said.
Butler acknowledged the broader housing shortfall, saying the latest figures show more work is needed across government and industry to lift supply and meet the target.
“This just reminds us again, we’ve got a lot of work to put our shoulders to the wheel,” he said. “Obviously, we’re doing what we can. We’ve got to do more. The industry needs to do more. State governments need to do more to look at their planning laws.”
The government has been working with states and territories to fast-track infrastructure and reduce regulations that are blamed for slowing construction. Meanwhile, the Opposition is calling for cuts to migration and a reduction in the National Construction Code to ease pressure.
