T
he Albanese Government has finally passed its 'Help to Buy' legislation after a lengthy standoff with the Greens. I've been advocating for this policy for years, as it was a key part of Labor's 2021 Federal Election campaign.

    The two main challenges to home ownership in Australia are the deposit and repayments. While we do well on the first one, thanks to generous government contributions in states like Queensland, the Help to Buy policy addresses the second challenge by helping with repayments – a first for our country.

    Under this policy, the Government will contribute up to 30% of an existing house's cost or up to 40% of a new home's cost. The first homebuyer must still contribute at least 2%. This means they'll only need to borrow 68% for an existing home and 58% for a new one, significantly reducing their repayments.

    I'm confident this policy will be highly effective in enabling homeownership for many Australians who are currently locked out of the market. It's expected to benefit around 10,000 first-homebuyers annually. While the Government will own a portion of the property and its value growth, I believe it's a worthwhile investment that will ultimately provide a windfall for future Australians.

    That being said, there are areas where the policy could be improved. The eligible dwelling values are too low in many capital cities, with median prices often exceeding the maximum eligible price. For example, in Sydney, the eligible price is $950,000, while the median house price is over $1.2 million. I'd like to see these values pegged to median dwelling values.

    Additionally, the income threshold of $90,000 for singles and $120,000 for couples is too low, given Australia's average full-time income is now over $103,000. It would be more effective to tie this threshold to average wages and household incomes.

    Finally, I think there should be a separate policy for essential service workers, who often earn above the current threshold but struggle to afford housing in areas where they work. Discretionary consideration on a case-by-case basis could help address this issue.

    While the Help to Buy policy isn't perfect, it's a significant step forward for affordable housing and will undoubtedly provide more opportunities for first-homebuyers than before.