Federal Election 2025: Comparing Housing Policies from Labor, the Coalition, Greens and More

As federal election 2025 draws near, housing affordability and availability have turned out to be key issues for the country.

With major political parties readying their policies to address housing concerns, let us see how homebuyers, existing homeowners, and investors could potentially benefit from various parties’ proposals.

What Does the Labor Party Have To Say?

The Labor Party has committed to an investment in social and affordable housing. Its plan includes the $10 billion Housing Australia Future Fund, aimed at constructing 30,000 affordable homes within five years.

Additionally, Labor has introduced a household battery subsidy to reduce energy costs, which could lower electricity bills for homeowners.

Labor has also expanded its existing “Help to Buy” scheme by increasing income and property price caps, making more home buyers eligible. This shared-equity arrangement allows buyers to co-purchase with the government, reducing the deposit and mortgage burden.

These policies will help homeowners, first-home buyers and low-to-middle income earners.

Coalition’s Housing Strategy For Federal Election 2025

The Coalition promises to restore the dream of homeownership by boosting housing supply, rebalancing migration, and reducing building costs.

The core of the Coalition’s plan is to “unlock up to 500,000 new homes” through a $5 billion infrastructure fund and a 10-year freeze on changes to the National Construction Code, which could save up to $60,000 per home in compliance costs.

For first-home buyers, the Coalition offers multiple proposals:

• Access up to $50,000 from superannuation for a home deposit, repayable upon sale.

• Tighten migration and foreign ownership rules, including banning foreign investors and temporary residents from purchasing existing homes.

• A newly announced First Home Buyer Mortgage Deductibility Scheme, allowing first-home buyers to claim tax deductions on up to $30,000 of mortgage interest per year. This policy is designed to help younger Australians afford their first home sooner by easing the financial burden of mortgage interest.

Under the First Home Buyer Mortgage Deductibility Scheme:

• First home buyers who purchase a newly built home as their principal place of residence will be eligible.

• Buyers can deduct the interest paid on up to $650,000 of their mortgage from their assessable income.

• There is no cap on the overall mortgage size or home price, but only the interest on the first $650,000 of the loan will qualify for deductions.

• The measure will be available to individuals earning up to $175,000 and joint applicants
  earning up to $250,000 (once eligible, participants will retain access to the deduction even if their income rises).

• These measures are designed to support home builders and property investors.

  The Coalition also aims to reduce permanent migration and cap international student numbers, with a goal of freeing up over 100,000 homes in five years.

Greens’ Aim To Revamp Policies

The Greens have advocated for comprehensive reforms to address housing affordability. They have proposed rent controls to limit increases and strengthen tenant rights, providing stability for renters.

The Greens have a plan to build a good amount of public and affordable housing to increase supply. In addition, the greens are advocating for changes to negative gearing and capital gains tax concessions, to discourage speculative investment.

Renters, low-income households, and prospective buyers can benefit from these proposals.

National Party Emphasises Regional Development

The key housing goal for the National Party is investments in regional infrastructure. They plan to invest in, and fix, rural roads, as well as maintaining bridges to enhance productivity and safety. The National Party is also keen on listening to local communities and providing them with better housing conditions.

United Australia Party's Financial Plan

The United Australia Party proposes financial measures to support homeownership. The main item on the party’s list is a proposal that introduces a maximum interest rate of 3% a year for all home loans over the next five years, to prevent Australians from losing their homes.

The United Australia Party also plans to make the first $30,000 paid on a home loan tax deductible each year, to boost the construction industry. Homeowners and the Construction industry are more likely to benefit from these policies.

Final Words

Housing has definitely taken centre stage in the national conversation as Australia heads into the 2025 federal election.

Right from affordability and supply to renters’ rights and interest rates, each party brings a distinct approach to tackling the housing crisis.

The various policies would affect homebuyers, homeowners, investors and renters. Whether it’s Labor’s focus on affordable housing, The Coalition’s push to boost supply and lower building costs, or the Greens’ reforms for tenant protection, the options are interesting.

As the election draws closer, voters will need to weigh these housing policies carefully before they cast their vote.

Federal Election 2025: Housing Policy Comparisons