SYDNEY (Reuters) – Australia’s government said on Saturday it would expand a scheme to help would-be home buyers get on the property ladder, ahead of what is expected to be a closely-fought general election due by May that has housing affordability as a key issue.
Prime Minister Anthony Albanese’s centre-left Labor government has pledged to build 1.2 million homes by 2030 to help ease cost pressures in Australia, where many are dissatisfied with the availability of affordable housing.
On Saturday, ahead of handing down on Tuesday its final budget before the election, the government said it would expand income and price caps for its “Help to Buy” scheme to enable property purchases with lower deposits and smaller mortgages.
“These changes ensure more first home buyers will be eligible for Help to Buy, with more than 5 million properties in Australia falling under the new property price caps,” it said in a statement, referring to the scheme, launched in November.
The government would also invest A$54 million in advanced manufacturing of prefabricated and modular homes as part of this week’s budget, it said.
“For the first time, manufacturers and home-owners will have a national certification process to cut the red tape that has been holding back use of these techniques,” Industry and Science Minister Ed Husic said in the statement.
The budget pledges come after a widely-watched poll in February showed most Australian voters wanted the Labor government out of office. In the poll, Albanese’s approval rating hit its lowest point since he was elected to office in May 2022.
The government, which has not yet officially called the election, is working to lift support via a slew of measures aimed at pleasing families and businesses grappling with high living costs and boosting jobs.
(Reporting by Sam McKeith in Sydney; Editing by Shri Navaratnam)
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