Debate: Labor Defends $43 Billion Housing Agenda, Coalition Warns of Major Shortfall

In a fiery housing debate, Sukkar calls it a sliding door moment while O’Neil says boldness is required to tackle 40 years of neglect.

A house under construction stands in front of newly built homes at a housing development located in the south-west Sydney suburb of Menangle Park in Australia on Feb. 20, 2025. David Gray/AFP via Getty Images

The week started with major housing announcements from both Prime Minister Anthony Albanese and Opposition Leader Peter Dutton.

And a few days later on April 16, both parties’ housing ministers took to the debate floor at the National Press Club in Canberra.

Here are some of the key takeaways from the debate between Labor’s Housing Minister Clare O’Neil and Shadow Minister Michael Sukkar.

Sukkar Says Aussies Worse Off

Sukkar came out swinging, calling Labor’s record “one of the most catastrophic public policy failures in a generation.”

He said housing completions, approvals, and first home buyer access had all gone backwards.

Rents have surged 18 percent, and mortgage-holding families are now $50,000 worse off.

He accused Labor of backing a foreign-owned rental model and being too close to unions like the CFMEU, which he said pushed up building costs.

Labor’s promise of 1.2 million homes, he argued, was already falling short by 400,000. He said the math behind the $10 billion Housing Australia Future Fund to build 100,000 homes—at an apparent cost of $100,000 per home—“doesn’t stack up.”

Liberal Party MP Michael Sukkar speaks during Question Time in the House of Representatives at Parliament House in Canberra, Australia on May 13, 2020. Sam Mooy/Getty Images

Labor: ‘A Crisis Built Over 40 Years’

Minister O’Neil countered that the housing crisis had been building for decades.

“We came to office three years ago after a decade of abject neglect of housing. This was not some subterfuge withdrawal from housing,” she said.

She accused the former Coalition government of walking away from housing altogether.

“[Prime Ministers] Tony Abbott and Scott Morrison actually deliberately made a decision to take the Commonwealth out of the discussion,” she said, adding they did not have a housing minister for a long time.

Housing Minister Clare O’Neil during Question Time in the House of Representatives at Parliament House in Canberra, Australia on Feb. 15, 2024. AAP Image/Mick Tsikas

Labor’s Record: ‘The Boldest Agenda Since the Post-War Period’

O’Neil defended Labor’s track record as transformative.

“Our government has built easily the boldest and most ambitious agenda on housing that a government has had in our country since the post-war period,” she said.

She pointed to 500,000 homes built across the country since 2022, backed by policies like free TAFE, which has trained 500,000 Australians with building skills.

Meanwhile, Labor’s own 1.2 million home target is underway, she said, with 28,000 social and affordable homes already in planning or construction on 55,000.

She also highlighted rent relief and home ownership schemes.

“We’ve lifted Commonwealth Rent Assistance by 45 percent, helping a million households,” she said.

The minister also said 40,000 individuals were benefitting from the Help to Buy program.

‘Game-Changing’ 2nd Term Agenda

O’Neil said Labor would go “much further” if re-elected.

“We are going to offer every young person the chance to get into the housing market with just a 5 percent deposit, with the government backing you in,” she said.

A second major reform would see the Commonwealth co-fund 100,000 new homes with the states, aimed solely at first home buyers.

“We want to make sure young people don’t have to compete with property investors or older generations,” O’Neil said.

Labor’s full agenda, she said, now totals $43 billion, with $32 billion dedicated to building new homes.

“This is three times Coalition invested in ten years,” she added.

Migration Reset and Housing Supply

Sukkar reiterated the Coalition’s cuts to the permanent migration intake, capping international students, and banning foreign buyers and temporary residents from purchasing existing homes for two years—moves he claimed would free up 100,000 homes.

O’Neil defended the migration program saying that housing supply remains the real issue—particularly in construction.

“About 2.8 percent of construction workers are overseas arrivals,” she said. “About 10,000 came in through that system last year.”

First Home Buyer Incentives

Sukkar reiterated the tax breaks for new buyers, including a mortgage interest deduction for the first five years—worth $55,000 for average couples. He said it would generate 30,000 extra new homes per year.

He also reiterated the Coalition’s super-for-housing policy—allowing buyers to access up to $50,000 from super, repayable when the home is sold. The Coalition’s home guarantee scheme, introduced in 2020, would continue.

O’Neil countered that under Labor’s scheme, young buyers could access up to 40 percent of their super balance—but only as a partial deposit.

“It will accelerate it,” she said.

On concerns that Labor’s 5 percent deposit scheme could inflate prices, O’Neil cited Treasury advice, “We’re talking about 30,000 additional buyers in a market with 700,000 transactions annually.”

Construction Slowing to Just 3 Days a Week: Sukkar

Sukkar said housing supply remains hamstrung by a lack of critical infrastructure. He pointed to hundreds of greenfield sites still undeveloped due to insufficient access to water, power, sewerage and roads.

To address this, he reiterated the Coalition’s $5 billion housing infrastructure program to fast-track 500,000 new homes with a mix of grants and concessional loans.

Sukkar also blamed the CFMEU for undermining productivity in the sector, claiming that in many cases, construction has slowed to “less than three productive days of work a week”—an inefficiency that inflates costs and hits home buyers hardest.

Sparring Over Targets

Sukkar criticised Labor’s 1.2 million homes target, citing a forecast shortfall of 300,000.

O’Neil stood firm.

“We need a bold and ambitious target, because boldness is exactly what is required,” she said.

She acknowledged early concerns from the industry but said progress had been made. “The last Master Builders report showed we’ve made up 240,000.”

When confronted on his targets, Sukkar refused to give a number but insisted they would do better.

“We will get to as many as we possibly can, but I’m certain it will be higher than Labor.”

Final pitches reflect sharp divide

While summing up their positions in the final minute of debate, both sides drew hard lines.

O’Neil said Labor was fixing a crisis long ignored.

“We’ve got a genuine and serious problem with housing … and what you’ve heard from Michael today is that under a Peter Dutton government, we’re going to expect more of the same,” she said.

“We’re going to build more homes, give renters a better deal, and help more young people into home ownership.”

Sukkar pitched ambition over excuses.

“This is a sliding door moment,” he said. “If you’ve seen what’s occurred over the last three years—rents rising nearly 20 percent—it’s never been harder to purchase a home. Labor is offering you three more years of the same.”

He said the Coalition’s housing infrastructure programme and mortgage deductibility scheme would finally give first home buyers “the firepower they need.”