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{{propApi.successMessage}} {{region}} Change location1.2 million homes achievable with these policies, and further reforms
1.2 million homes achievable with these policies, and further reforms
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“This scheme would see tens of thousands of additional homes commence construction each year, taking pressure of established house price growth by increasing the supply of new homes and at the same time, reducing demand for rental properties as first home buyers move to their new home.
“The scheme could see at least 30,000 new homes commence construction, as first home buyers move out of the established market to build new homes.
“The volume of new homes commencing construction is at its lowest for more than a decade and has remained at that level for 3 years. There were around 166,000 new homes that commenced construction in 2023 and again in 2024. This is the lowest volume of new home commencements since 2012.
“There is an acute shortage of housing in all regions across Australia. The only solution to this problem is to increase the supply of new homes commencing construction.
“Governments impose significant costs on new home building that have restricted the supply of new homes over recent decades. In Sydney, up to $575,000 of the cost of a new house and land package is just the taxes, fees and charges. The first 15 years of a mortgage a spent paying for government costs, and the second 15 years pay for the land and the home.
“First home buyers bear a disproportionate burden of these costs. First home buyers must save to pay for stamp duty upfront, and don’t have the benefit of the equity in existing housing assets to support their purchase.
“For this reason, governments have a significant role to play in offsetting the taxes, fees and charges that are incorporated in the cost of new home for first home buyers.
“In addition to the policies announced today, all tiers of government need to work together to bring down the cost of delivering a new home to market.
“All three tiers of government have added additional, unnecessary costs, to delivering a new apartment and detached home over the past 5 years. Offsetting these costs with tax cuts is a step forward.
“In addition to these policies governments need to work together to stop increasing the cost of homes by ensuring all agencies are coordinated and focused on reducing the cost of home building.
“To make inroads into improving housing outcomes across the board, we need bold and effective reforms, and today’s announcement from both major parties outline the types of structural changes and investments needed to support more young Australian’s get their keys in the door to their own home,” concluded Ms Martin
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