The federal government is set to broaden the eligibility for its Help To Buy housing initiative with an $800 million investment, as detailed in next week’s budget. Housing Minister Clare O’Neil has revealed that the scheme will now allow more individuals, including those with higher incomes, to access its benefits. The government provides an equity stake of up to 40% in properties purchased by low-income first-home buyers under this scheme.
Key changes include an increase in the income threshold for access: it rises from $90,000 to $100,000 for individuals, and for couples and single parents, it elevates from $120,000 to $160,000. Additionally, the maximum property values eligible for assistance have also been raised. In metropolitan areas like Sydney, the price cap for qualifying properties will now be $1.3 million, while in Melbourne and other Victorian regions it will be $950,000. Queensland buyers in areas such as Brisbane can seek assistance for properties valued at up to $1 million.
Despite the expanded eligibility, the overall number of buyers able to utilise the scheme remains fixed at 10,000 annually for four years. This expansion is expected to enhance the program’s value from $5.5 billion to $6.3 billion, as the government aims to address the housing crisis directly. O’Neil emphasised her commitment to enabling ordinary Australians to achieve home ownership through these adjustments.
In addition to the Help To Buy scheme, the budget will allocate $54 million towards the prefabricated and modular home construction sector. This includes funding for a national certification process for offsite construction, which aims to expedite approvals for these types of homes. The remainder of the funding will assist state and territory governments in boosting modular home construction.
Industry Minister Ed Husic supported this investment, asserting that it will hasten home construction while also generating jobs. He highlighted that factory-built homes can significantly reduce construction times, thereby addressing urgent housing demand.
Through these initiatives, the government is taking measures to enhance the housing market, making home ownership more accessible for Australians.