Cassandra Fernando (Holt, Australian Labor Party) Share this | Hansard source

The great Australian dream embodies the typical aspiration of every Australian family to own their own home. For generations, the image of owning a home on a block of land has been deeply engrained in the collective consciousness as a symbol of success and stability. For many migrants, the aspiration to own a home reflects their desire to establish roots, build a sense of belonging and provide stability for their family in their adopted country. The pursuit of homeownership is not merely a financial endeavour but a deeply personal journey rooted in values of hard work, perseverance and the desire to provide a better life for oneself and one's loved ones.

This dream is one my family has pursued and is why I am proud to stand here today to speak for the Albanese Labor government's Help to Buy Bill 2023 and Help to Buy (Consequential Provisions) Bill 2023. These bills are crucial steps in fulfilling our commitment to the Australian people, a commitment made during the 2022 election, to make the dream of owning a home a reality for thousands of Australians. This significant proposal stands as the pillars of hope and progress in our ongoing efforts to address the housing affordability crisis gripping our nation. At the outset, it is important to provide context regarding the prevailing housing landscapes in Australia. For too long, skyrocketing property prices and stagnated wages have conspired to push homeownership further out of reach for many Australians, particularly those on low and middle incomes. Young Australians have had it the toughest, with many giving up on homeownership all together. The dream of owning a home, once considered a cornerstone of the Australian way of life, has become an elusive aspiration for far too many.

Homeownership rates between generations have been on the decline significantly. At the same age in their life, 55 per cent of millennials own their own home, while this rate was 62 per cent for gen X and 66 per cent for Boomers. In my electorate of Holt, where 24.4 per cent of the population are under 15, gen alphas leave me with the question what will be the future for them? The average time to save for a deposit for a house on an medium income now exceeds a decade. In 2001, the average home was 4.7 times the average income. Today, in Melbourne the average home is over 10 times the average income. This means people need to save for twice as long and pay twice as much for the same properties as they did 23 years ago.

Recognising the urgency of this issue, the Australian Labor Party made a commitment to the Australian people during the 2022 election to implement a help to buy scheme aimed at supporting up to 40,000 Australian households in their quest for homeownership. Today, with the Help to Buy bill before parliament, we are taking tangible steps forward towards fulfilling this promise—tangible steps forward helping those new families in Cranbourne, in Clyde, in Hampton Park and in Narre Warren South buy their first home. Central to these bills is the Help to Buy shared-equity scheme, a groundbreaking initiative at the national level. It is designed to provide crucial financial support to aspiring homeowners. Under this scheme, the Commonwealth will provide an equity contribution of up to 40 per cent for new homes and 30 per cent for existing homes, significantly reducing the burden of saving for a deposit and servicing a mortgage.

This means that, in my electorate of Holt, a young family could build a new three-bedroom home worth $650,000 for only $390,000. At a 6.5 per cent interest rate and with repayment over 30 years, this would result in weekly payments of $570, slightly more than the $470 per week to rent a similar property. The benefits are that you end up owning a house at the end. The benefits are that you have stability and do not need to negotiate with landlords on the volatile rental market every 12 months. The benefits are that you secure a legacy for yourself and your family. For a nurse or a teacher earning $75,000 a year, this keeps the cost of homeownership under one-third of their post-tax income, meeting that critical definition of affordable housing.

This represents a remarkable shift in our approach to homeownership, offering a lifeline to individuals and families who have long felt excluded from the property market. By reducing the required deposit down to two per cent, it keeps the initial deposit in reach for most families, compared to a five or 20 per cent deposit as required on most mortgages. On a $650,000 home in Cranbourne, this is only $13,000. By requiring participants to contribute at least a two per cent deposit, we are instilling a sense of ownership and responsibility and fostering a culture of self-reliance and resilience.

It is essential to emphasise that the Help to Buy scheme is not only a mere handout; it is a hand up—an opportunity for hardworking Australians to achieve the dream of homeownership through their own efforts and determination. Furthermore, the Help to Buy scheme is underpinned by the principles of fairness and equity. By sharing both the financial risk and benefits between the participant and the Commonwealth, we are ensuring that the burdens and rewards of homeownership are distributed equitably. This collaborative approach not only enhances the sustainability of the scheme but also underscores our commitment to fostering a more inclusive and equal society.

The Help to Buy scheme will be delivered through Housing Australia. Eligible participants will be able to access the scheme through participating lenders alongside a standard mortgage. Crucially, the Help to Buy scheme is just one element of our broader strategy to improve housing affordability and accessibility across Australia after a decade of inaction from those across the floor. Under our government, we've already been able to help more than 100,000 people to buy a house through the Home Guarantee Scheme. This scheme has allowed people to buy a home with a five per cent deposit without paying for lenders mortgage insurance.

We have re-asserted federal government leadership over housing policy after a decade of chaos and inconsistency by working with the states and territories to set a goal of constructing 1.2 million new, well-located homes over the next five years. This target underscores the collective determination to meet the growing demand for housing and enhance affordability nationwide. In support of this objective, the federal government has pledged $3 billion in performance based funding through the new homes bonus initiative, incentivising states and territories to exceed their respective shares of the housing target. By encouraging reforms to bolster housing supplies and affordability, this funding aims to make a tangible difference for Australians aspiring to homeownership. The goal is bolstered by the endorsement of the national planning reform blueprint, which outlines measures such as updating strategic plans, promoting medium- and high-density housing in well-connected areas and streamlining approval processes to enhance housing supply and affordability.

We have also established the $10 billion Housing Australia Future Fund, the largest investment in social housing projects in decades. This fund will support the delivery of 30,000 new social homes over the next five years. Likewise, the $2 billion Social Housing Accelerator payment is a testament to our commitment to providing safe and secure housing for the most vulnerable members of our society. It will allow state and territory governments to build 4,000 additional social housing units through to 2028. Moreover, the significant increase in Commonwealth rental assistance, the largest in 30 years, reflects our unwavering commitment to supporting those struggling to meet the cost of renting. By bolstering rental assistance, we are providing much-needed relief to individuals and families facing rental stress, ensuring that no Australian is left behind.

The Help to Buy scheme shines as a ray of hope in a housing market that has been steadily declining for young Australians. By empowering Australians to achieve their dreams of homeownership we are not only building strong communities but also laying the groundwork for a more resilient and prosperous nation. I thank the Hon. Julie Collins, the Minister for Housing, for her hard work on this vital reform and putting homeownership back in the reach of so many families. Whether individuals are approaching retirement, just entering the workforce or anywhere in between, Help to Buy stands ready to provide support, welcoming them into the housing market.

I urge all members in this House to support the passage of these bills for, in doing so, we will reaffirm our commitment to the fundamental principle that every Australian deserves a place to call home. I say to the Greens: I call on you not to hold this legislation hostage. Do not delay this bill like you delayed the Housing Australia Future Fund. Do not hold hostage the dream of homeownership for 40,000 Australians. Do not hold up this vital reform on some aspirational hill. This reform is practical and can be implemented immediately and will deliver for working Australians across this nation.

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