The government is planning to expand the eligibility criteria for one of its key housing policies by investing $800 million, as announced by Housing Minister Clare O’Neil. This move aims to enhance the Help To Buy scheme, which involves the government taking an equity stake of up to 40% in homes purchased by low-income first-time buyers.
People with higher incomes will be now eligible for the scheme, and it will be available for properties that are worth more.
Under the proposed changes, the income threshold for qualifying for the scheme will increase. The threshold for individuals will rise from $90,000 to $100,000 annually, while for couples and single parents, it will go up from $120,000 to $160,000 per year.
The maximum value of properties that can be purchased under the scheme has also been boosted.
“I’ve got a pretty straight-forward goal here – to make sure that ordinary, working-class Australians can buy a home of their own,” O’Neil said.
“That’s why we’re expanding Help to Buy so that most first-home buyers are eligible.”
In Sydney or regional centres in NSW, the new price cap for eligible properties will now sit at $1.3 million.
Moreover, residents in Melbourne and other cities in Victoria will now have the opportunity to receive assistance for purchasing properties valued up to $950,000. Similarly, the maximum cap for properties in Brisbane or other regional centers in Queensland eligible for the scheme has been raised to $1 million.
However, the number of home buyers able to access the scheme has not increased, with the figure remaining capped at 10,000 a year over four years.
The government says the expanded eligibility will increase the value of the program by $800 million, up from $5.5 to $6.3 billion.
“We’re tackling the housing crisis head-on by building more homes, using new technologies, and making it easier for Australians to buy them,” O’Neil said.
The budget will also include a further $54 million into the prefabricated or modular home construction industry.
Almost $5 million of that will create a national certification process for offsite construction, which the government says will streamline approvals for pre-fabricated houses.
The remaining $49.3 million will go towards “supporting state and territory governments to supercharge prefabricated and modular home construction”.
Industry Minister Ed Husic said the investment would help speed up home construction, while also creating jobs.
“We need to build more quality homes quickly – and help make great manufacturing jobs along the way,” Husic said.
“Making a house in a factory instead of onsite can cut construction time in half.”
