Ministerial Statement
Senate · Wednesday 27 August 2025
Official Hansard for this day (APH) · Read this debate on OpenAustralia
The debate centred on a ministerial statement announcing that from 1 October, all first home buyers could purchase a home with a five per cent deposit. The government highlighted this as part of a broader $43 billion housing agenda aimed at increasing supply and assisting renters. Opposition senators argued that the policy ignored supply constraints, risked inflating prices, and exposed taxpayers to significant financial liability without income caps. They also criticised the government for a lack of transparency regarding the number of homes built under the Housing Australia Future Fund.
The motion that the Senate take note of the statement was agreed to.
Summary in reported speech - not a transcript. AI-generated, so check the official record before quoting.
Opened the debate
Chisholm tabled the statement on behalf of the Minister for Housing, announcing the expansion of the five per cent deposit scheme to all first home buyers effective 1 October. The measure was presented as a key component of the government's strategy to improve housing affordability and security.
Opposition response
Bragg argued that the government was claiming success while housing construction rates had fallen compared to the previous administration. Bragg contended that removing income caps from the deposit scheme would subsidise wealthy Australians and create a $62 billion contingent liability for taxpayers. Bragg also cited concerns that increased demand without corresponding supply growth would drive up housing prices, potentially displacing lower-income buyers.
Dolega supported the statement, noting that over 180,000 Australians had already purchased homes through the existing five per cent deposit program. Dolega argued that the new measures would save buyers up to eight years of saving time and approximately $34,000 in lenders mortgage insurance. Dolega also highlighted the government's commitment to constructing 55,000 social and affordable dwellings and 100,000 residences for first-time purchasers.
Brockman criticised the housing policy as distortionary, arguing that lowering deposit thresholds without addressing supply would increase competition for available homes and drive up prices. Brockman raised concerns about the rent-to-buy plan, suggesting it resembled high-rise social housing models in England that had been associated with negative social outcomes. Brockman questioned whether the government's approach was the desired model for Australia.