Labor’s 5% deposit scheme will only fuel the housing crisis
Labor’s 5% deposit scheme will only fuel the housing crisis | 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 5% deposit scheme will only fuel the housing crisis 2025-09-17 Labor’s home guarantee scheme won’t ease the housing crisis.
It will pour fuel on the fire. The experts are clear: it won’t work for single and low-income first home buyers. Labor needs to stop tinkering in ways that make the housing crisis worse, and do things that actually work.
From October, under the scheme, borrowing limits will be increased and income caps lifted, which Treasury's own modelling says will cause house prices to rise. The Greens say the scheme, while out of reach for many, will leave more people in higher levels of debt and drive up property prices, further fueling the housing crisis. Lines attributable to Greens housing spokesperson Senator Barbara Pocock: “It's reckless for the government to encourage first home buyers to spend more than they can realistically afford - repayments of over $1,000 a week are just not doable for most.
“Borrowing 95% of a mortgage when homes are eight times the average household income are a recipe for financial stress, not stability. “This isn’t help — it’s hype. Even Treasury’s own numbers say it’ll push prices up.
First-home buyers will be left paying more. “Without additional housing supply, without addressing the root causes of our housing crisis, this scheme will just hike property prices. This will lock out even more first home buyers, especially single and low income earners, like teachers and nurses, unable to live close to where they work.
“This scheme is just smoke and mirrors — all it does is supercharge house prices and dump even more debt onto first-home buyers. It does nothing to tackle intergenerational housing inequality in Australia and it does nothing for tackling our housing crisis. “Experts agree these demand-side schemes drive prices up, with house prices forecast to increase by 9 percent next year .
We need real change. That means cutting back tax perks for rich investors and building affordable homes where people live and work. "Australia's housing system is rigged for the wealthy.
It is working well for them, but it is failing everyone else. Negative gearing and capital gains tax discounts let cashed-up investors outbid everyday Australians — and young people, single people, low income workers are the ones paying the price. “This government has an opportunity to fix the housing crisis — but if they keep dodging real reform, they’ll lock a whole generation out of ever owning a home.” 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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