Housing market voting guide for Election Day

Election Day has arrived in Australia. 

That means Aussies nationwide will be heading to their nearest polling place for extra helping of Democracy Sausage and cake — and to cast their votes. 

But with all the noise in the run-up to this year's election, it's easy to be overwhelmed by all the proposed ballot measures. That's doubling true for the housing market, which has turned into a battlefield among the leading candidates. 

“There’s been a number of policy promises made during this campaign. It's difficult for voters to keep track.,” Anja Pannek, chief executive officer of the Mortgage & Finance Association of Australia (MFAA), told Australian Broker. 

From shared equity schemes and super-for-deposit access to proposals for interest deductions and serviceability buffer changes, the major parties are offering different solutions to the nation’s housing crisis. 

Voters, meanwhile, have understandably been thinking about inflationary pressures, rental shortages and possible interest rate cuts. There's also US President Donald Trump's tariffs in the background. Understanding these last-minute pledges, as well as the larger landscape, is pivotal for homeowners and investors, many all of whom are navigating home loans, affordability issues and investment opportunities.

Mortgage brokers, meanwhile, will need to be aware of how these policies affect mortgages, policies and greater market dynamics. 

Australian Broker has put together a last-minute cheat sheet about each candidate, their promises and what their win will mean for the housing market. 

The contenders

This year's ticket includes two frontrunners: Anthony Albanese (pictured above left) and Peter Dutton (pictured above right). Albanese is the current prime minister and leader of the Labor party, having held the office since 2022. Dutton leads the Liberal-National Coalition. 

Albanese's campaign focuses on housing affordability, an expansion of healthcare and renewable energy investment, while Dutton's platform emphasizes tax cuts, nuclear energy developments and stricter immigration policies. 

Despite a narrow lead by the incumbent in preliminary polls, the possibility of a minority government remains, leaving both candidates — and voters — on edge. 

Labor's housing proposals

If re-elected, Albanese’s Labor government promises a multi-pronged approach aimed at expanding housing supply and easing the affordability crunch for first-home buyers. Critics, however, argue that these targets are realistic with the nation's current labor shortage, and may further delay construction efforts. 

A look at some of the initiatives: 

• Help to Buy Scheme: Central to Albanese's platform, the shared equity scheme would allow up to 40,000 first-home buyers to co-purchase homes with the government. The initiative will help many prospective first-time homebuyers enter the market who otherwise were priced out because of affordability issues. 
• 5% Deposit Scheme Expansion: The current program will be expanded to allow all first-home buyers the change to purchase a home with as little as a 5% deposit. This removes the need for Lenders Mortgage Insurance (LMI). 
• $10 Billion Housing Fund: A promise to construct 100,000 new homes, all for first-home buyers. Also assists first-time homebuyers, while also addressing the housing shortage.
• National Housing Accord: A pledge to build 1.2 million new homes by 2029, also a response to the nation's housing shortage.
• Social Housing Accelerator: A promise to create thousands of new social homes across Australia, with all funding committed by states and territories by June 30. 
• $10,000 Apprentice Incentive Payouts: In an effort to attract more people to jobs in construction and the clean energy sectors — and a reaction to ongoing labor shortages — Albanese's government is offering a $10,000 cash bonus. 
• Non-resident Buying Ban: Under Albanese's continued government, he said he would uphold the two-year existing-home buying ban for non-citizens and non-residents. The move is meant to increase the housing supply for Australians. 
• Instant Asset Write-offs: Albanese also said he will extend instant asset write-offs, which allow business to take tax breaks when purchasing equipment, for another year.

Coalition's housing proposals

The Coalition, on the other hand, is betting on tax incentives and less red tape to drive housing activity. The strategies are likely to stimulate demand in the short term. Critics, however, argue that these measures may not sufficiently address the underlying issues.

A look at some of the initiatives: 

• Mortgage Interest Tax Deduction: The tax break lets first-time homeowners of newly built homes deduct interest payments up to $650,000 of their mortgage. Dutton's camp said this could save property owners $11,000 a year in taxes.
• Superannuation Access for Home Deposits: Would-be homeowners will be able to tap into the supers early, withdrawing up to $50K, for down payment on a home. 
• Serviceability Buffer Reduction: Proposing to lower the mortgage serviceability buffer from 3% to 2.5%, potentially increasing national borrowing capacity by $276 billion and assisting approximately 270,000 prospective buyers. 
• Infrastructure Investment: A $5 billion plan to fast-track infrastructure for greenfield developments, potentially unlocking 500,000 new homes.
• Non-resident Buying Ban: Like the current government, Dutton said he would uphold the two-year existing-home buying ban for non-citizens and non-residents in an effort to increase the housing supply for Australians. 
• Instant Asset Write-offs: Dutton plans to make the instant asset write-offs – which allow business to take tax breaks when purchasing equipment – a permanent feature. In addition, the minimum amount will go from $20,000 to $30,000. 
• Migration and Foreign Student Cuts: Dutton proposed a plan to cut permanent migration by 25%, a move he said would help free up more homes for Australians. But the plans will also indirectly affect the nation's workforce, which could lead to even further delays in new builds because of labor shortages.