Carina Garland (Chisholm, Australian Labor Party) Share this | Hansard source

It's my pleasure to rise in support of this important bill and genuine policy reform. In May 2022 Labor took the Help to Buy policy to our communities as one of our key election commitments. The Help to Buy Bill 2023 and Help to Buy (Consequential Provisions) Bill 2023 give effect to this commitment and provide for Housing Australia to administer the Help to Buy scheme, supported by a referral of power from the states.

Our Labor government is an ambitious government committed to a housing agenda that will improve housing affordability and supply. We've already created the $10 billion Housing Australia Future Fund—the single biggest investment to support social and affordable housing in more than a decade. We've also provided $2 billion to state and territory governments to deliver around 4,000 new social homes. Our government has also unlocked $575 million from the National Housing Infrastructure Facility, with homes being built right around the country, and we will invest an additional $1 billion in this facility to support even more homes.

We are a government that has delivered the largest increase in Commonwealth rent assistance in 30 years. This is real practical assistance for Australians that makes a difference. Our government wants to ensure that more Australians have a roof over their heads through a new national housing and homelessness plan. I'm proud that our government does not just talk when it comes to Australians having a roof over their heads; we act and we will always act. Through this legislation, our government is taking yet another step forward.

Our government understands that buying a home is important to Australians. We know what a difference this will make. Homeownership is an opportunity for Australians to put down roots and to live and to build life in community. It allows for children to join the local sports club and for parents to get involved with the local primary school with a sense of stability and ownership—not just of their home, but with further equity in their communities.

Delivering on our commitment to initiate the Help to Buy scheme will mean more Australians have a safe and affordable place to call home and build community. This is, of course, alongside all of our other housing commitments meaning that we can help more people. We'll continue to be ambitious for Australians. It's what drives me; it's what drives our government every single day. Our ambitious housing reform agenda is working right across Australia. We're providing more help for homebuyers, for renters and for people who need a safe place for the night.

Our government's working hard every day to help Australians facing housing challenges, and, through this important piece of legislation, we're doing even more. The Help to Buy shared-equity scheme will support up 40,000 Australian households to purchase a home of their own. Under the scheme, the Commonwealth will provide an equity contribution to eligible participants of up to 40 per cent of the purchase price for new homes and 30 per cent for existing homes.

On a practical level, states will be required to pass legislation for the scheme to operate in their jurisdictions. Significantly, in August all states agreed at National Cabinet to progress legislation, so this scheme will run nationally. This scheme will be open to applications for four years with 10,000 places available each year.

At a functional level, the Help to Buy scheme will be delivered by Housing Australia and supported by a panel of lenders. This will fulfil our government's election commitment to establish a national shared-equity scheme.

From a timing perspective, it is expected that states and territories will pass legislation in 2024, so this year. Consistent with general practice for referrals of power, at least one state must pass legislation before the Commonwealth passes the Help to Buy legislation.

This legislation is another important step forward that our government is taking to bring homeownership back into the reach of more Australians. In November of last year, the Minister for Housing introduced legislation to make Help to Buy a reality. This is not just a leg-up to help Australians into homeownership but it also provides long-term relief for participants in the scheme, and we know that this will be the first national shared-equity scheme of its kind. This will be delivered through Housing Australia and will assist Australians to overcome the hurdle of both saving for a deposit and servicing a mortgage, which are challenges that people face.

Through Help to Buy, the Commonwealth will cut the cost of buying a home by up to 40 per cent. Participants will only require a minimum two per cent deposit and will benefit from lower ongoing mortgage repayments through a smaller home loan. As mentioned, when National Cabinet met in August last year they agreed to progress this legislation so that the scheme can run nationally. And we've seen recent recommitments to this agreement.

We're now acting, with the introduction of this legislation, to help ensure the government is in the best position to make this support available to Australians. We'll continue to work closely with state and territory governments on the rollout of the scheme. We know that eligible participants will be able to access the scheme through participating lenders, alongside a standard mortgage.

As with a traditional mortgage, Housing Australia will then provide the Commonwealth's equity contribution through a loan arrangement secured against the property. A special appropriation to enter Help to Buy arrangements through Housing Australia will be funded by the Commonwealth and will provide a return to the Commonwealth when the equity is repaid. The Minister for Housing will provide written directions to Housing Australia on the operation of the scheme, including decision-making criteria for entering Help to Buy arrangements. This is a similar approach to other government programs, like the Home Guarantee Scheme.

The bill also includes the administrative framework for Help to Buy, including that Housing Australia must report to the minister on an annual basis. It also provides that the minister must cause a review of Help to Buy as soon as possible after the end of three years from the commencement of the bill. There's also a general power to make regulations that are required or permitted by the bill, or are necessary or convenient to give effect to the bill. A significant attribute of Help to Buy is that it will be open to assist people who've owned homes before and those who are yet to purchase their first home. Importantly, this bill seeks to capture people at almost all stages of life. It'll help singles, couples, siblings, those starting in the workforce, as well as those who are close to retirement and everywhere in between.

We are an ambitious government. We are committed to a housing agenda that will improve housing affordability and supply, and we take this responsibility really seriously. We're sharing in the cost of purchasing a home, and, upon sale, any capital gains or losses will be shared between the participant and the government, proportionate to their interests. Whilst the Commonwealth recognises that most states and territories already administer some form of shared-equity scheme, with most made available only to specific cohorts, there is an opportunity that we see for the Commonwealth to complement these existing schemes and to extend this support to more Australian households by establishing our national shared-equity scheme.

Whilst households will be limited to accessing one shared-equity scheme at a time, whether it is Help to Buy or it's a state or territory scheme, they will have the opportunity to apply for the scheme that best suits their personal circumstances. Places will be allocated between participating states and territories on a per capita basis. Each state and territory's allocation will be available to eligible residents on a first come, first serve basis. The 10,000 places will be available under the Help to Buy scheme each year and will be initially allocated to participating states and territories on a per capita basis. States will need to have passed the Help to Buy legislation in order to access scheme places. The territories are not required to pass legislation for the scheme to operate in their jurisdictions.

Help to Buy will support the purchase and construction of new and existing homes, including houses, townhouses and apartments—all sorts of housing. Up to a 40 per cent equity contribution will be available to support eligible new homes, including house and land packages, land and separate contract-to-build homes, and off-the-plan dwellings. Help to Buy will involve the government directly contributing funds to support an eligible applicant's home purchase. That means that participants can buy a home with a smaller deposit, smaller mortgage and smaller mortgage repayments.

Fundamentally, this scheme is aimed at supporting low- to middle-income households into homeownership. Income caps will apply in the form of $90,000 for singles and $120,000 for joint applicants, which compares with the Home Guarantee Scheme's caps of $125,000 for singles and $200,000 for joint applicants. Participants will be able to renovate their homes, and they will not have to seek the government's permission to do so. That is a response of sorts to the previous contributor's queries about this scheme. So I hope that he goes back and looks at this publicly available information.

The government will not be a co-owner of scheme properties. Rather, the government's investment in participants' homes will be secured through a second mortgage, with the government's interest similar in nature to a private mortgage holder. In relation to participants exceeding the income cap, after entering the scheme the participant's individual circumstances will be considered, with participants only needing to repay the Commonwealth's contribution as their circumstances permit.

Of note is that continuity arrangements have been provisioned within the bill in the unfortunate situation that a participant passes away. That will allow a participant's beneficiary, subject to eligibility, to participate in the scheme. Participants or their executors may make repayments of the equity contribution. Participants will be able to make early payments on the government's equity share when they are able to do so and thereby increase their stake in the property. At a minimum, this must be five per cent for the value of the property at the time of repayments. Participants will not pay rent or interest on the government's equity share.

This is ambitious reform, and we are ambitious for all Australians. Of course, we can contrast that with the approach to housing from those opposite, who, during the last election campaign, relentlessly attacked our government's commitment here and who of course did next to nothing over the previous decade. They had the privilege, the gift, of government and failed to build the homes that Australians need. We know that those opposite like to say no to everything, but I do really urge them to very seriously consider supporting legislation that ensures that more Australians are able to enter homeownership.

We understand that affordable housing is critical to economic wellbeing and to building communities, and we are absolutely committed to supporting more Australians in their endeavour to build community and to access housing. We are getting on with the business of good government—doing what we said we would do—and we'll continue to be unapologetically ambitious for Australians, including in the area of housing.

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