The Federal Government has announced a $10 billion housing plan to help more Australians—especially first home buyers—access the property market sooner.
Unveiled by Prime Minister Anthony Albanese, the plan includes two major components: the construction of 100,000 new homes reserved exclusively for first home buyers, and an expansion of the government’s existing Home Guarantee Scheme.
100,000 Homes Reserved for First Home Buyers
In a bid to increase supply and affordability, the Albanese Government will work with state governments and private developers to deliver up to 100,000 new homes. These homes will be available to first home buyers only, removing competition from property investors. Construction is expected to begin in the 2026–27 financial year, with buyers moving in from 2027–28.
The model is based on similar programs operating in South Australia, such as the HomeSeeker program, which has been credited with improving access to home ownership for low-to-middle income earners.
Expanding the 5% Deposit Home Guarantee Scheme
The second arm of the plan is a significant expansion of the existing Home Guarantee Scheme. Under the current scheme, the government guarantees part of a home loan for eligible first home buyers, enabling them to purchase a property with a 5% deposit and without paying Lenders Mortgage Insurance (LMI).
More than 150,000 Australians have already used the scheme since it launched. However, access has been limited by annual caps and income thresholds.
From January 2026, Labor will:
- Remove the annual cap (currently 50,000 places)
- Eliminate income thresholds ($125,000 for individuals and $200,000 for couples)
- Increase property price caps to better reflect local markets (e.g., Sydney’s cap will rise from $900,000 to $1.5 million)
The government says these changes will shave years off the time it takes to save for a deposit and could save buyers around $23,000 in LMI costs.
Here are the updated property price caps:
| Region | Current property price cap | New property price cap |
| NSW – capital city/regional centre | $900,000 | $1,500,000 |
| NSW – other | $750,000 | $800,000 |
| VIC – capital city/regional centre | $800,000 | $950,000 |
| VIC – other | $650,000 | $650,000 |
| QLD – capital city/regional centre | $700,000 | $1,000,000 |
| QLD – other | $550,000 | $700,000 |
| WA – capital city | $600,000 | $850,000 |
| WA – other | $450,000 | $600,000 |
| SA – capital city | $600,000 | $900,000 |
| SA – other | $450,000 | $500,000 |
| TAS – capital city | $600,000 | $700,000 |
| TAS – other | $450,000 | $550,000 |
| ACT | $750,000 | $1,000,000 |
| NT | $600,000 | $600,000 |
Potential Impact on Women
While the announcement is expected to benefit a broad group of first-time buyers, experts say its impact on single mothers and young women could be particularly significant.
Women—especially those raising children alone—often face longer timelines to save for home deposits due to lower average earnings and higher caring responsibilities. Removing income thresholds and reducing upfront costs could make home ownership more achievable for these groups, provided new homes are built in accessible areas.
Housing advocates have welcomed the expansion but warn that implementation will be key. Without appropriate location planning, price controls, and transparency around eligibility, the benefits risk being unevenly distributed.
The $10 billion plan brings Labor’s total new housing commitments to $43 billion, alongside efforts to improve renters’ rights, boost rent assistance, and deliver 55,000 social and affordable homes—28,000 of which are already underway.