Labor’s 5% deposit scheme will add billions to property prices
Labor’s 5% deposit scheme will add billions to property 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 5% deposit scheme will add billions to property prices 2025-10-01 The Albanese Government’s First Home Buyers Scheme will add $55 billion to property prices over the next six years, according to ABS data analysed by the parliamentary library.
Labor has lifted borrowing limits and income caps under the scheme as of today - a move which, according to media reports, Treasury modelling expects will inflate house prices. Newly compiled data from the Parliamentary Library shows a 0.5% increase would be $55 billion, increasing the value to $11,164 billion, over 6 years. This amounts to an average of around $9 billion per year.
The Greens say Labor’s deposit scheme will turbocharge the housing crisis by driving property prices up, locking out first home buyers or plunging them into deep debt. Lines attributable to Greens housing and homelessness spokesperson Senator Barbara Pocock: “In the midst of a national housing crisis, this scheme will add billions of dollars to property prices.
How is this a solution? Labor is turbocharging the housing crisis. “We know this will drive up house prices and we know this will encourage people to buy houses they can’t afford - it’s reckless.
“Under the Labor’s First Home Buyers Scheme, the Government is encouraging people to take out loans on homes they can’t afford. Taking out a 95% mortgage when property prices are eight times the average household income doesn’t create stability — it sets first-buyers up for financial hardship, while the banks take the profits. “If Labor’s goal is to make housing even more out of reach for everyday Aussies - it’s certainly succeeded.
This policy sounds good on paper but it’ll only drive up house prices and plunge first-home buyers deeper into debt. “Increasing housing demand without dealing with the acute housing supply issue in this country just means more expensive homes. “The housing market is rigged for the wealthy.
Until the government scraps the tax perks for wealthy property investors - the capital gains tax discount and negative gearing - and builds affordable homes, younger generations will be left on the sidelines.” Data: The current value of dwelling stock owned by households in Australia is $11,108 billion ($11.1 trillion). A 0.5% increase would be $55 billion, increasing the value to $11,164 billion, over 6 years.
An average of around $9 billion per year (assuming a simple linear increase). Media contact: Charlotta Lomas - 0466339862 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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