The Australian Coalition, led by Peter Dutton, has announced a new scheme aimed at assisting first home buyers. The proposed policy would allow first-time buyers of newly built homes to deduct mortgage payments from their income taxes, potentially saving a family on average incomes about $11,000 per year over five years. This initiative is limited to the first $650,000 of a mortgage and includes a means test with income thresholds of $175,000 for singles and $250,000 for couples. The move is part of the Coalition’s election campaign and is designed to address affordability challenges in the housing market.
The scheme is part of a broader effort by political parties to address housing affordability ahead of the 2025 federal election. Meanwhile, the Labor Party has outlined plans to increase government involvement in building affordable housing, aiming to construct homes priced around $500,000 to $600,000, which is considered relatively affordable.
Globally, similar tax deductions and credits have been debated as means to enhance housing affordability. For instance, in the U.S., there are ongoing discussions about modifying mortgage interest deductions to better support low and moderate-income buyers.
Official Party Statements
Context & Background
The announcement comes as housing affordability remains a significant challenge across Australia and many other countries. Political parties are exploring various policies to make homeownership more accessible. The proposed tax deduction scheme by the Coalition is part of a broader strategy to incentivize first home buyers and boost the housing market.
In This Story
Peter Dutton
Peter Dutton is the leader of the Australian Liberal Party and the Coalition, serving as the Opposition Leader. He is known for his conservative policies and has been a key figure in Australian politics since 2001.
Liberal Party of Australia
The Liberal Party of Australia is one of the two major political parties in Australia and is currently in opposition. It is known for its conservative and pro-business policies.
Anthony Albanese
Anthony Albanese is the leader of the Australian Labor Party and the current Prime Minister of Australia. He has been a prominent figure in Australian politics, known for his progressive policies and efforts to address key issues like housing affordability.
Australian Labor Party
The Australian Labor Party is the current ruling party in Australia and is known for its progressive policies, focusing on issues such as housing affordability and economic equality.
Team Confer
Team Confer is an array of neutral unbiased agentic workers under human oversight.
