Following the Labour Government's emphatic victory in the May federal election, it brings with it an opportunity to build on the promises made during the campaign to address the housing crisis.

Thanks to the strong advocacy involvement of HIA, both major parties recognised the pressing need to boost housing supply, tackle the skills shortage, and establish financial systems that encourage homeownership.

With the outcome of the election now settled, the Albanese government has a clear majority in both the House of Representatives and the Senate – so there’s no excuses for any further delays on impasses to clear the books and pull out all stops to boosting supply and get all the roadblocks out of members’ way to delivering more homes quicker.

Labor's housing priorities

Labor's housing policy promises they took to the election, which included a continuation of some of its programs from the past term of government, included a commitment to increasing housing supply and supporting those who wish to own their own homes while also addressing the skills crisis that continues to impact the sector.

Labor's ambitious plan to deliver 1.2 million new homes under the National Housing Accord will be critical in addressing our housing shortage. This initiative includes 40,000 new social and affordable homes under its $10 billion Housing Australia Future Fund, a new $10 billion commitment to build 100,000 new homes for first homeowners and $3 billion in incentives for states and territories that meet their housing targets.

There’s also a commitment to $1.5 billion in enabling infrastructure to support housing projects and $54 million to promote greater uptake of prefabricated housing. These initiatives will provide a coordinated approach to tackle the barriers to housing supply, including planning delays and prohibitive regulations.

One of its flagship policies includes the expanded Home Guarantee Scheme, which promises to open doors for more first-home buyers by removing caps and income means tests for 5% deposit loans and waiving lenders mortgage insurance (LMI). This will make homeownership more accessible to those who may have previously been locked out of the market and something HIA successfully advocated for.

Additionally, a Help-to-Buy scheme will assist up to 10,000 first-time buyers annually over the next four years under a shared equity model. The ALP has agreed to expand the eligibility criteria and adjust and increase the median house price caps to make the scheme more fit for purpose and again something HIA successfully advocated for.

These measures complement a push for broader reforms to ensure that financial systems support homeownership, including consideration of adjusting the mortgage serviceability buffer.

Next generation

Addressing the skills shortage in the construction industry remains a top priority. A $10,000 residential construction apprentice incentive payment is a welcome initiative designed to attract and retain skilled workers.

Additionally, the pledge to fast-track training for up to 6000 tradies through a $78 million investment will also assist in getting more hands on deck. There’s a continued focus on Fee-Free TAFE training as well as the establishment of a $50-million Future of Housing Construction Centre of Excellence, which focuses on Modern Methods of Construction in partnership with the Victorian Government.

This will help to future-proof the workforce, equipping the next generation of builders and tradespeople with the skills they need.

HIA continues to advocate for employer supports to take on and mentor apprentices. This includes a continuation of the current employer support program.

The Coalition's housing promises

While Labor was victorious, we should also acknowledge the Coalition's housing promises. A number of these will push to shape the broader housing conversation. Its focus on boosting housing supply through financial incentives and regulatory reform also aligns with key areas of HIA advocacy.

This included a proposal for a $5-billion infrastructure fund aimed at unlocking 500,000 new homes, with 30% of this funding directed towards regional areas. This plan also included a 10-year pause on National Construction Code (NCC) changes to reduce building costs and a national blueprint for planning reform to address housing supply bottlenecks.

The proposal to expand the Home Guarantee Scheme, along with offering tax deductions for mortgage interest payments and enabling first-home buyers to access up to $50,000 from their superannuation, reflected a commitment to making homeownership more accessible.

On the skills front, a $12,000 employer incentive would encourage the hiring and training of apprentices. Additionally, it has committed to the creation of 12 Australian technical colleges.

Fulfilling these promises

As we look to the future, we’re ready to work alongside the new government to see these promises fulfilled. The new government’s policies provide a strong foundation for addressing the housing crisis, improving affordability, and ensuring builders have the necessary support to succeed.

However, much more work is needed to remove the barriers to housing supply and address the long-term challenges facing the industry.

HIA will continue to advocate on critical issues and work together with the government to ensure Australia's housing future is built on a solid foundation, with policies that support builders, create jobs, and deliver the homes Australians need.

First published on 12 June 2025