If you’ve been dreaming about owning your first home, the outcome of the 2025 federal election could bring some welcome news. A number of housing policies that were announced during the lead-up to the election, and aimed squarely at first home buyers, are now set to go ahead. Some changes are enhancements to existing schemes and others are new initiatives by the federal government.
These initiatives are designed to make it easier to break into the property market—whether you’re just starting to save or already house hunting. Bear in mind, these are federal initiatives and there is also a lot of support provided at the state level that’s worth investigating.
So, let’s look at what’s on offer.
The continuation of the Help to Buy program
One of Labor’s centrepiece housing policies is Help to Buy, a shared equity scheme allowing eligible Australians to buy a home with a deposit as low as 2 per cent, with the government contributing up to 40 per cent of the property price (new builds) or 30 per cent (existing homes).
Expansion of the First Home Guarantee Scheme
One of the most immediate and impactful changes is Labor’s expansion of the First Home Guarantee Scheme, which is set to begin 1 January 2026.
This program allows eligible first home buyers to purchase a home with as little as a 5 per cent deposit. The government acts as guarantor on the remaining 15 per cent, meaning buyers don’t need to pay Lenders Mortgage Insurance (LMI)—a cost that can run into the tens of thousands depending on your loan size.
Previously, access to this scheme was limited by income thresholds and regional property price caps, which meant some buyers in larger cities or with slightly higher earnings were left out. Labor has now expanded the eligibility requirements, making the scheme available to a broader group of Australians. Now, there is no cap on income and depending on the state you are buying in, price caps have been lifted.
This change is especially helpful for buyers struggling to save a 20 per cent deposit in high-price markets like Sydney or Melbourne, where even modest homes can require huge upfront deposits. With just 5 per cent needed, many buyers will be able to get into the market sooner.
New homes being constructed for first home buyers
One of the more ambitious commitments from Labor is a plan to build 100,000 new homes for first home buyers. Backed by a $10 billion investment, these homes will be constructed on under-utilised government-owned land and delivered in partnership with state and territory governments to reduce red tape and fast-track approvals. Construction for these projects is expected to start between 2026 and 2027, with buyers moving in from 2027 to 2028.
The goal is not just to help individuals, but to increase overall housing supply—a key factor in addressing Australia’s affordability crisis. These new homes are intended to be priced affordably and reserved specifically for eligible first-time buyers, reducing competition with investors and repeat buyers.
While full eligibility criteria are still being finalised, it’s expected that buyers may need to meet certain income limits to ensure the homes go to those who need help the most.
If you’re currently planning ahead rather than buying immediately, this initiative could provide an opportunity down the line to secure a home at a more affordable price point than the general market.
A $1,000 tax deduction
A smaller, but still helpful measure is the introduction of a $1,000 annual tax deduction for work expenses starting in the 2026–27 financial year. This will automatically apply when taxpayers lodge their tax return, without the need to apply separately or fill out extra paperwork.
A brighter outlook for first-time buyers
If you’re thinking about buying your first home, now’s a good time to start planning. With fewer restrictions, expanded eligibility to access government support, and new housing stock on the way, the landscape is starting to improve.
Of course, it’s still important to be realistic about what you can afford and get solid financial advice, but with these opportunities in play, home ownership may be closer than you think.
There is a lot of government support on offer and determining the most appropriate for your situation calls for expert advice, so come and have a chat to us about whether any of these grants could help you to buy your first home.