Question Time AU

Ministerial Statement

Housing

House of Representatives · Wednesday 27 August 2025

Official Hansard for this day (APH) · Read this debate on OpenAustralia

At a glance

The Minister for Housing announced the removal of caps on the first home buyer deposit scheme, allowing all eligible buyers to purchase with a five per cent deposit from 1 October. The Liberal Party opposed the measure, arguing it would increase house prices and impose significant liabilities on taxpayers. The Labor Party defended the policy as a necessary step to improve housing affordability and support young Australians.

Outcome

The motion to take note of the direction was moved but the debate was adjourned before a vote could be taken.

Summary in reported speech - not a transcript. AI-generated, so check the official record before quoting.

How the debate unfolded

Opened the debate

Clare O'Neil (Hotham) (Australian Labor Party) ALP

O'Neil stated that the government was addressing a long-standing housing crisis by expanding support for first home buyers. The minister announced that income and participant caps would be removed from the scheme, and property price caps would be increased to reflect average market values. These changes were scheduled to commence on 1 October, three months ahead of the original timeline. O'Neil argued that the expansion would help tens of thousands of Australians enter the market earlier and avoid substantial mortgage insurance costs. The minister highlighted that the program had already assisted over 180,000 buyers and claimed it would save participants billions in potential insurance fees.

Opposition response

Tim Wilson (Shadow Minister for Housing) Liberal Goldstein

Wilson argued that the expansion of the scheme would distort the housing market and increase costs for future generations. The member claimed that independent economists warned the policy would raise house prices by up to 10 per cent and create a $60 billion liability for taxpayers. Wilson contended that the government was prioritising political gain over economic stability and failing to address the underlying supply shortage. The member criticised the Labor government for reducing construction rates and increasing population growth without adequate housing infrastructure. Wilson asserted that the coalition supported homeownership through empowerment rather than government control.