Australians will be out in force today to decide which political party will govern the country for the next three years.
Current Prime Minister Scott Morrison of the Liberal Party faces a challenge for the top job from opposition leader Anthony Albanese, who controls the Labor Party.
Property has been a focus for much of the run-up to the 2019 federal election, with negative gearing clearly a point of contention for voters. Due to the recent pandemic-induced housing boom and rising affordability constraints, this year has also seen a number of housing policies offered to voters in an attempt to convince them, although the argument of the Previous negative gear was put to rest, after Labor confirmed it would continue the property tax program if elected.
So what have the Labor and Liberal parties promised voters ahead of the 2022 federal election?
Both sides said they would expand the housing guarantee program
Formerly known as the First Home Loan Deposit Scheme, the program aims to help first-time home buyers and other demographic groups previously excluded from the real estate market on the property ladder.
Anthony Albanese was the first to commit to an extension of the system, introducing a policy of 10,000 new places intended for the inhabitants of the region. It has also committed to conducting semi-annual reviews of the program’s price caps for all cities and regions, to ensure the program is tracking price trends.
Morrison’s government has since announced an extension to the Home Ownership Support Scheme, which will be split between New Home Guarantee, Family Home Guarantee, First Home Guarantee and New Home Guarantee schemes. regional, and has committed to increasing the price caps associated with the plan.
Great for housing v Help with purchase
A few weeks before the election, Mr Albanese had promised that a Labor government would reduce the cost of a mortgage by up to $380,000 for some eligible Australians as part of its home buying assistance scheme.
The scheme involves the Labor government offering eligible buyers a capital contribution of up to 40% of the purchase price of a new home and up to 30% of the purchase price of an existing home.
Buyers will be able to purchase a property they intend to live in with as little as 2% down payment. Participating lenders finance the remainder of the purchase.
During the term of the loan, the purchaser has the possibility of acquiring an additional participation in the property if he has the means to do so. Before that point, they won’t have to pay rent for the government portion of the house. The government would recover its equity and its share of the capital gain when the house is sold.
Just this week, Mr. Morrison pushed back on his own plan: to allow first-time homebuyers to use up to 40 per cent of their super – up to a maximum of $50,000 – to help with the purchase of their first home.
Requiring at least a 5% deposit to access this savings pool, this money should be returned to the super fund when the house is sold, plus any capital gains earned on this part of the sale.
National Housing Finance and Investment Corporation (NHFIC)
In its 2022-23 budget, the Morrison government allocated an additional $2 billion to the NHFICwith approximately $1.64 billion committed to the National Housing and Homelessness Agreement (NHHA).
If elected, Mr. Albanese has pledged to establish a National Housing Supply and Affordability Council, which would expand the role of the NHFIC and create a $10 billion Australian Housing Fund for the Future to build 30,000 new social and affordable homes.