Which political party in Australia is making better property promises?

As Australia gears up for the 2025 federal election, one of the most pressing issues on the table is housing. Across the country, Australians are grappling with soaring property prices, the high cost of living, unaffordable rents, and growing concerns about the future of homeownership. With housing becoming a critical issue for voters, political parties are making their promises and strategies in the lead-up to the election.Here, we explore the key housing-related promises we might see, and what these proposals could mean for Australian voters.

Even though these are often just promises, and may not come to fruition at all, we have to make a decision based on something, trying to find the party that best aligns with our own values and interests.

ALP

The Australian Labor Party (ALP) has made housing a central issue in its policy platform. Given the growing concerns over housing affordability, rental stress, and the shortage of available properties, the ALP has proposed several key policies aimed at addressing these challenges. Here’s a breakdown of some of the key housing policies you can expect from the ALP for the upcoming election:

  • Housing Australia Future Fund (HAFF)
    The ALP’s flagship housing policy is the Housing Australia Future Fund. This initiative involves a $10 billion investment fund that will be used to finance the construction of social and affordable housing. The fund is expected to generate returns that will support the building of 30,000 new homes over the next five years, providing essential housing for low- and middle-income Australians. This measure is part of the government’s broader strategy to tackle the national housing crisis. While the fund is still in its early stages, it is a core commitment of the current ALP government.
  • National Housing Supply Target
    Labor has worked with state and territory governments to set a target to build 1.2 million new homes over the next five years. The goal is to significantly increase the housing supply to meet the needs of a growing population, ease pressure on the rental market, and improve affordability. This will also involve coordinating efforts between federal, state, and local governments to ensure a pipeline of new housing projects, particularly in high-demand areas.
  • First Homebuyer Assistance
    Labor is focused on making homeownership more accessible for first-time buyers. The First Home Buyer Deposit Scheme helps first-time buyers access a home with a deposit as low as 5%, and the First Home Super Saver Scheme allows individuals to use their superannuation savings to help with a home deposit. Labor is also exploring additional support measures to make it easier for young people and families to break into the housing market, including extending shared equity schemes.
  • Renting Reforms
    Recognising the ongoing challenges renters face, the ALP is likely to propose significant reforms to the rental market. This includes:
    • increased protections for renters, such as capping rent increases to ensure they are more manageable and predictable.
    • Greater security of tenure, making it harder for landlords to evict tenants without good reason.
    • Rent-to-own schemes, allowing tenants to gradually purchase the property they are renting, fostering a pathway to homeownership.
  • Taxation and Investment in Housing
    Labor has signaled that it will review housing tax policies, particularly targeting negative gearing and capital gains tax. While the ALP’s previous proposals to reform negative gearing were met with controversy, the party may explore new ways to ensure that tax incentives are better aligned with housing affordability objectives. This could include limiting tax deductions for property investors or introducing new disincentives for speculative investments that drive up property prices.
  • Foreign Investment Restrictions
    Labor has expressed concerns about the impact of foreign investment on housing affordability, particularly in major cities. The ALP is expected to continue to advocate for stronger regulations around foreign investment, including restrictions on foreign buyers purchasing existing homes. This policy is intended to help cool the market and ensure that housing remains affordable and accessible for Australians.

The Liberal Party

The Liberal Party has outlined several key housing policies aimed at addressing the nation’s housing affordability and supply challenges. These initiatives focus on increasing housing supply, supporting first-time homebuyers, and implementing regulatory reforms to enhance the housing market.

  1. Infrastructure Investment to Boost Housing Supply
    The Liberal Party plans to invest $5 billion in essential infrastructure—such as water, power, and sewerage—to unlock up to 500,000 new homes. This investment aims to facilitate the development of new housing projects and alleviate supply constraints.
  2. Support for First-Time Homebuyers
    To assist first-time homebuyers, the Liberal Party proposes allowing individuals to access their superannuation funds for home deposits. This measure is intended to make homeownership more accessible by reducing the financial barriers associated with purchasing a home.
  3. Freeze on National Construction Code Changes
    The party intends to freeze any further changes to the National Construction Code for 10 years. This policy aims to provide certainty to the construction industry, potentially reducing costs and delays associated with frequent regulatory changes.
  4. Temporary Ban on Foreign Investment in Existing Homes
    The Liberal Party has proposed a two-year ban on foreign investors purchasing existing homes. This measure aims to reduce competition in the housing market and make homes more accessible to local buyers. However, some experts have criticized this ban as ineffective due to a significant loophole, suggesting that the primary issue driving up housing demand is the high number of migrants, not foreign investors.

As the election approaches, housing will likely remain a key battleground issue, with both parties seeking to convince voters of their ability to solve this pressing national challenge.

Major parties face criticism over focus on demand-side incentives

After both major parties faced criticism that their election pledges relied too heavily on demand-side incentives that could push house prices higher, the Labor Party of Australia has committed to accelerating qualifications for 6,000 tradies in a multimillion-dollar effort to grow the number of construction workers and boost home building and similarly the Coalition has announced their own tradie incentives.

Labor’s Housing and Tradie Initiatives

  • Advanced Entry Trades Training Program: Labor plans to invest $78 million to fast-track the qualification of 6,000 tradies. This program aims to provide fee-free TAFE courses for experienced but unqualified workers, enabling them to gain formal recognition for their skills.
  • Key Apprentice Program: Labor proposes offering up to $10,000 in bonuses to apprentices in trades such as bricklaying, electrical work, plumbing, carpentry, and joinery. The allowance would be given to apprentices living away from home, in increments of $2,000 each, on top of their wages.
  • Housing Targets: Labor aims to construct 1.2 million new homes over the next five years, including 55,000 social and affordable units, supported by $21 billion in funding.

Coalition’s Housing and Tradie Initiatives

  • Apprentice Subsidies: The Coalition commits $505 million to subsidize apprenticeships, aiming to increase the number of apprentices and trainees in training to over 400,000.
  • Superannuation Access for First Home Buyers: The Coalition proposes enabling first home buyers to withdraw up to $50,000 from their superannuation to assist with home purchases.
  • Infrastructure Fund: A $5 billion fund is proposed to support infrastructure development, aiming to ease housing pressures.
  • Migration and Project Approvals: The Coalition plans to reduce immigration to ease housing pressures and expedite project approvals to facilitate faster construction.

Brokers highlight affordability issues

Mortgage brokers have expressed mixed reactions to the major parties’ housing policies unveiled ahead of the 2025 federal election. While some brokers support initiatives like Labor’s Advanced Entry Trades Training program and the Coalition’s apprentice subsidies, others caution that such demand-side measures may inadvertently drive up property prices, potentially exacerbating affordability issues for first-time buyers. 

Industry bodies such as the MFAA and FBAA have called for a balanced approach that includes supply-side reforms, like increasing housing stock and streamlining planning approvals, to effectively address the housing crisis. Brokers emphasise the need for policies that not only assist buyers but also ensure sustainable housing growth and market stability.

Read more on these concerns here

Meanwhile the Housing Industry Australia (HIA) has launched a campaign on behalf of HIA members and home buyers, lobbying all political parties with a set election imperatives aimed a supporting new housing supply across all segments of the housing continuum.

In 2025 HIA calls on all political parties to:

  • Ensure home ownership is achievable for all Australians.
  • The Home Guarantee Scheme, Help-to-Buy, First Home Super Saver Scheme and similar programs must be supported and expanded.
  • Superannuation must be available to assist people secure a home deposit and home loan.
  • Support the delivery of a diverse mix of housing types by:
  • Encouraging the private housing market.
  • Understanding that the construction of apartments is critical to boosting the supply of rental properties.
  • Committing to the delivery of more social and affordable housing.
  • Deliver economic settings that allow residential construction businesses to thrive and that keep the dream of home ownership alive.

While the Federal Election is yet to be called, you can expect to hear more of these policies announced and promoted as the year goes on.

In the meantime, if you’d like to have a chat about your borrowing capacity, buying your first home or refinancing your home loan now or in the future, we’re always available to chat and can give you answers over the phone within minutes. Call one of Perth’s best mortgage broker today or click here for more info.

Disclaimer: The information provided on this blog is for general informational purposes only and does not constitute financial or professional advice. While we strive to provide accurate and up-to-date information, mortgage laws and regulations can change, and individual circumstances may vary. We recommend consulting with a qualified financial advisor or mortgage broker to assess your specific situation and needs. Base Home Loans is not responsible for any actions taken based on the content of this blog. Always conduct your own research and consider seeking professional advice before making financial decisions.

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