Everybody’s Home has called on the major parties to present more ambitious housing policies to Australians ahead of the election, warning that today’s announcements fall short of what is needed to end the country’s deepening crisis.
The Coalition is expected to propose a policy that would allow first home buyers of newly built properties to deduct their mortgage interest payments from their taxable income.
Meanwhile, Labor is proposing to allow all first home buyers to purchase a home with a five per cent deposit to avoid lenders mortgage insurance and will commit $10 billion to build 100,000 new homes for them.
Everybody’s Home spokesperson Maiy Azize said: “The promises made by the major parties today fall well short of what’s needed to address the housing crisis — in fact, some elements could make it even worse.
“The Coalition’s proposal to allow mortgage payments to be tax deductible for first home buyers is a form of negative gearing for non-investors, a move that will give more help to people on high incomes and could push home prices even higher. To make housing more affordable, we need to get rid of tax breaks when it comes to property, not create more.
“Labor’s home deposit support for first-home buyers will also add to demand. Building 100,000 homes is a good step, but they aren’t guaranteed to be affordable. Australia doesn’t just need new homes, we need homes that people can actually afford.
