Labor’s Anthony Albanese has defied the critics to be re-elected Australia’s prime minister in a landslide victory on Saturday 03rd May 2025. Albanese becomes the first prime minister to win consecutive elections in over 20 years.
Housing was a major talking point in the election campaign with both parties targeting first home buyers with a range of policies aimed at pleasing the younger generation in Australia. Below we take a look at what first home buyers can expect over the coming months from the re-elected Labor Government:
FHBG (HGS) Scheme Enhancement:
Labor has expanded the original FHBG Scheme it introduced in 2020. The enhanced version will come into effect on 01 Jan 2026, including the following changes:
- Removal of income caps – these currently stand at $125,000 for single applicants and $200,000 for couples
- Increase property price limits for every city and regional areas
- Avoid Lenders Mortgage Insurance and require only a 2% deposit for single parents and 5% for other applicants
| Capital city | House price limit for scheme |
|---|---|
| Sydney | $1,500,000 |
| Melbourne | $950,000 |
| Brisbane | $1,000,000 |
| Perth | $850,000 |
| Adelaide | $900,000 |
| Hobart | $700,000 |
| Canberra | $1,000,000 |
| Darwin | $600,000 |
With over 150,000 first home buyers already assisted, the scheme’s enhancement is expected to help a significantly higher number of first home buyers achieve the Great Australian Dream of home ownership, especially in the capital cities where the price limits have been increased to be more in line with the current median price in each capital city.
$10bn towards new builds:
The Labor Government has pledged up to $10 billion to build 100,000 homes exclusively for first home buyers. This will mean that first home buyers won’t have to compete with investors and other potential buyers, and it will also boost the supply of housing that is much needed.
The $10bn investment will enable the infrastructure, land purchases or construction to get these homes built – near their workplaces, only for first home buyers.
More details of this policy will be announced in due course.
Help to Buy Scheme:
The Help to Buy shared equity scheme will assist 40,000 first home buyers to purchase a new or existing home with an equity contribution from the government, meaning first home buyers will have a smaller mortgage with Government ownership.
This Scheme has been delayed due to the process in Parliament; however it has passed legislation and is expected to be in force later in 2025.
This policy is targeted towards first home buyers with low-middle incomes. More information on price caps and eligibility criteria will be announced later this year, please stay tuned.
Ban foreign investors:
The Dutton Coalition Government announced that it would be banning foreign investors from purchasing existing homes in Australia for two years. The current Albanese Government has also curbed foreign investors from buying existing properties by increasing the FIRB fees for existing homes.
However, this does not apply to the purchase of new homes, therefore, first home buyers will still be competing with foreign investors if they choose to buy or build a brand-new home.
Other housing measures:
- Boosting infrastructure by committing $1.5bn to fast-track roads, sewerage and water connections, aimed at speeding up the construction of new housing, hence, increasing supply
- Assisting renters that are saving for their first home by providing rent relief with a 45% increase in the Commonwealth Rent Assistance
- Changing HECS – by providing a 20% reduction on all student loan debts and increasing the minimum repayment threshold to $67,000. Assisting those that are applying for their first home loans.
FHBA’s views:
Generally, the team at FHBA believe these changes and policy enhancements will definitely assist more first home buyers purchasing their first home. However, we would like to see swift action taken from the Government by fast tracking these policies into legislation, allowing first home buyers to take advantage of the benefits on offer.
In comparison to the Dutton Government’s policies these will help those that are currently saving for their first home, whereas the Dutton Government was more focused on assisting first home buyers once they purchase their first homes.
If you would like more information or would like to get started on your first home buying journey, why not Book A Call with a FHBA Coach today, at a time that suits you!
Written By,
First Home Buyers Australia
