Labor’s scheme won’t solve the housing crisis, it will drive up prices

Labor’s scheme won’t solve the housing crisis, it will drive up prices | Australian Greens Skip to main content Search Get Involved Join Donate Our plan Tax the 1% Tackle the cost of living Healthcare for all Fix the housing crisis Strong climate action Policy principles & aims Our team Federal MPs State/territory MPs Officeholders Media releases Take action Volunteer Donate Issues & campaigns Events Greens Shop Leave a bequest Our movement About the Greens Become a member Jobs Green Magazine All news Get Involved Join Donate Search Our plan Toggle Tax the 1% Tackle the cost of living Healthcare for all Fix the housing crisis Strong climate action Policy principles & aims Our team Toggle Federal MPs State/territory MPs Officeholders Media releases Take action Toggle Volunteer Donate Issues & campaigns Events Greens Shop Leave a bequest Our movement Toggle About the Greens Become a member Jobs Green Magazine All news Labor’s scheme won’t solve the housing crisis, it will drive up prices 2025-08-25 Labor’s Housing Minister Clare O’Neil’s announcement today to bring forward guarantees for a 5% deposit for first-home buyers to avoid mortgage insurance will only drive up house prices for Australians trying to get into the market.

We have seen today Labor move its first housing bill (Defence Housing Australia Amendment Bill 2025) which, incredibly, builds public homes for US troops and defence contractors. In the midst of a national housing crisis, where are Labor’s priorities for Australians? Australia’s housing crisis can’t be fixed until the Government tackles the key driver, and that is, winding back tax discounts for wealthy property investors that lock out first-home buyers and force rents to skyrocket.

Lines attributable to Greens spokesperson for housing Senator Barbara Pocock: “This is a furphy designed to sound good but actually will continue to drive up house prices - turbocharging higher prices and bigger debts for first-home buyers. Experts agree these demand-side schemes just drive prices up, the only ones who benefit from this scheme are the banks and property investors.

“People will still be borrowing 95 percent of their mortgage and with median property values at eight times the typical annual household income, that leaves households highly vulnerable to huge repayments. “We need real action on housing, not tinkering, and that means winding back tax breaks for wealthy property investors and building affordable houses in the places where Australians need them.

“This scheme won’t help first-home buyers. Economists and even Treasury's own modelling say this scheme will force house prices to go up, which will leave more people in higher levels of debt. “The Greens won't stand in the way of things that aim to help first-home buyers.

However, the Government has to look at the bigger picture because house prices are skyrocketing and more demand-side measures are only going to make that problem worse. “Our tax system rewards wealthy property investors and pushes up prices. Every day that negative gearing and the capital gains tax discount stay in place is another day that first-home buyers are outbid by property investors at auctions around the country.

“The Government has a real opportunity in this progressive parliament to fix the housing crisis and they must take it, otherwise generations will be locked out of affordable housing forever.” Media contact: Charlotta Lomas - 0466 339 862 Facebook for the Australian Greens YouTube for the Australian Greens X for the Australian Greens Instagram for the Australian Greens Bluesky for the Australian Greens Privacy Members website Your safety Contact us Our plan Tax the 1% Tackle the cost of living Healthcare for all Fix the housing crisis Strong climate action In your language 2025 policy platform Policy principles & aims Our team Federal MPs State/territory MPs Officeholders Federal portfolios Federal media releases Take action Volunteer Donate Issues & campaigns Upcoming events Greens Shop Leave a bequest Green Magazine All news Our movement About the Greens Become a member Jobs Members website State/territory parties Contact us The Greens acknowledge the Traditional Owners of country throughout Australia and recognise their continuing connection to land, waters and culture.

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