After languishing in the Senate for almost 300 days, the Albanese government’s Help to Buy bill finally passed on Nov. 26.
Deputy Senate Leader Don Farrell moved the motion, which passed with 56 votes in favour and 39 against after a brief debate around amendments.
The bill was anticipated to pass without much resistance today after the Australian Greens announced that they would support it.
What Is the Help to Buy Bill?
The Help to Buy bill establishes Australia’s first national shared equity scheme, designed to help low- and middle-income households purchase homes.Under the scheme, Housing Australia will oversee the Commonwealth’s equity contributions of up to 40 percent for new homes and 30 percent for existing properties.
Assistant Trade Minister Tim Ayres explained that the program aims to assist 40,000 households over four years by addressing two significant barriers to homeownership: saving for a deposit and managing mortgage payments.
Participants will need a minimum 2 percent deposit and will benefit from smaller home loans and lower monthly repayments.
Ayres claimed the scheme is inclusive, open to first-time buyers and those re-entering the property market.
He added that state governments can enact supporting legislation, with all states agreeing in principle to participate.
“The minister for housing will provide written directions to housing Australia on the operation of the scheme, including decision making criteria for entering into Help to Buy arrangements,” he said.
Greens Push for Amendments
Before extending their support, Greens Senator Mehreen Faruqi criticised the bill for not addressing key gaps in housing policy and made a final call for two amendments.The first amendment sought to prioritise affordable, medium- to high-density housing close to public transport, aiming to boost supply without inflating existing property prices.
The second amendment proposed removing income-based penalties, which require participants to repay the government’s share of their homes if their income rises above the set threshold.
Faruqi described the penalties as creating an unfair “income trap” that discourages financial progress.
“We will make one more attempt to make this bill better, and that’s what these amendments are about,” she told the Senate.
However, Ayres defended the government’s position, stating that Australians should have the freedom to choose where they live, whether near urban centres or in rural areas.
On the income threshold issue, he talked about the importance of recycling funds to assist others.
“If someone earns a million dollars, we should expect them to start to pay back the taxpayer, ensuring this money can support other low- and middle-income Australians,” he said.
Criticism from Liberals, One Nation
The bill faced significant opposition from the Liberal and One Nation parties.Liberal Senator Andrew Bragg criticised the government for neglecting housing supply issues, highlighting a sharp decline in housing construction—from 220,000 units in 2018 to 160,000 this year.
“Australians do not want to co-own their homes with the government,” Bragg argued, referring to the unpopularity of similar shared equity schemes at the state level.
“This demand-side bill lacks any modelling on its impact and does nothing to solve the supply-side problem.”
One Nation Senator Malcolm Roberts also opposed the bill, claiming it would erode homeownership freedom.
“Under the government’s Help to Buy bill, you’ll become a slave in your own home. Under One Nation’s plan, the Australian dream of owning your home will become a reality,” he stated.
Roberts criticised it for its narrow focus, arguing that it fails to tackle the root cause of Australia’s housing crisis—supply and demand.
He added that scheme’s limited spots suggest the government is aware of the potential inflationary pressures it could create.
“Key questions about how profits, losses, and renovations will be treated are unclear. Participants in this scheme could be far worse off.”
