The Election Promises: What Are the Major Parties Promising

With the 2025 federal election approaching, housing affordability and real estate policies are taking centre stage in the political debate. As property prices remain high and rental demand surges, both Liberal and Labor parties have introduced competing policies aimed at addressing housing supply, affordability and financial accessibility. 

For first-home buyers, investors and renters alike, these policies could have a significant impact on the real estate landscape in the coming years From superannuation access and shared equity schemes to construction industry reforms and student debt relief, each party is offering different solutions to Australia’s ongoing housing challenges.

This blog will help to break down the housing and real estate policies of both major parties, comparing their potential impact on the market and what they mean for buyers, investors and renters. 

Labor Party housing & real estate policies

As the incumbent government, Labor has focused on increasing housing supply, making homeownership more accessible, and easing financial pressure for young Australians. Their policies include direct government investment, financial assistance for first-home buyers, changes to negative gearing and changes to student loan repayments that impact borrowing capacity.

Help to Buy

In the recent federal budget released on Tuesday, the Labor Party announced they are broadening their Help to Buy scheme, a shared equity scheme for first home buyers to utilise allowing them to give up a 30% stake in their property with a 2% deposit. The government chips in up to 30% of the purchase price, with the purchaser able to buy with a lower deposit and overall loan. The purchaser is then able to buy back their share of the property over time. With increased caps on income and property value, more people than ever will be able to get into the market.

Housing Australia Future Fund

Labor’s Housing Australia Future Fund is a $10 billion investment aimed at delivering 30,000 social and affordable rental homes over five years. The initiative prioritises housing for key workers and vulnerable Australians, addressing rental stress and homelessness. 

National Housing Accord

The National Housing Accord is a plan to build 1.2 million homes between 2024 and 2029 in partnership with state and local governments, institutional investors, and developers. This aims to increase the housing supply in well-connected areas with proper infrastructure.

HECS Debt Reduction and Exclusion

Labor is proposing that banks no longer consider HECS debt when assessing mortgage eligibility, allowing more Australians to qualify for home loans and borrow larger amounts. This change aims to remove a key barrier for young buyers entering the property market.

Another big initiative that came from the federal budget this week was the reduction of HECS debt. The proposal is to reduce outstanding HECS debt by 20% for young Australians and to reduce the amount individuals have to repay each year.

Negative Gearing Changes

Labor plans to restrict negative gearing to newly built homes only, starting from a yet-to-be-determined date after the next federal election. Under this policy, investors will only be able to offset net rental losses from newly constructed properties against their other income. However, Labor has confirmed that all investments made before the changes take effect will retain their existing tax benefits.

Liberal Party housing & real estate policies

The Liberal Party’s housing policies focus on increasing supply, easing demand pressures, and making homeownership more accessible through financial incentives. Their approach includes using superannuation for home deposits, restricting foreign investment, and reducing construction costs through industrial reforms. These measures aim to help more Australians enter the property market while addressing affordability challenges.

Superannuation access for homebuyers

The Liberal party proposes allowing first-home buyers to withdraw up to 40% from their superannuation with a maximum of $50,000 to purchase a home. This policy aims to help buyers enter the market sooner by using their retirement savings as part of their deposit. While this could provide immediate relief for first-home buyers, critics warn that it may deplete retirement funds and drive up property prices due to increased demand.

Infrastructure Investment

To address shortages, the Liberal plan a $5 billion investment in infrastructure to support the development of 500,000 new homes. This funding will go towards essential services such as water, electricity, and roads in new residential areas, making more land available for housing and accelerating construction timelines.

Reducing migration and foreign investment

The Liberals propose a two-year ban on foreign investors and temporary residents purchasing existing homes. This measure is intended to ease demand pressure and increase housing availability for local buyers. Additionally, the party plans to adjust permanent migration levels to reduce strain on the housing supply, particularly in major cities where demand is highest.

Industrial relations & construction costs

The party plans to reinstate the Australian Building & Construction Commission (ABCC) to regulate industrial relations in the construction sector. The Liberals argue that this will reduce union-driven disruptions, cut down delays, and lower building costs. By making construction more efficient, the goal is to create more affordable housing and boost supply. They also propose to place a freeze on changes to the National Construction Codes for ten years.

What these policies mean for homebuyers & investors

Housing policies from both parties will influence affordability, supply, and investment opportunities. Some initiatives focus on helping first-home buyers enter the market, while others aim to increase housing stock and control costs. The impact of these policies will depend on market conditions, implementation, and long-term economic factors.

For first-home buyers, changes to borrowing power, deposit requirements, and financial assistance could improve accessibility. Some policies provide direct government support, while others allow buyers to use existing savings or benefits to enter the market sooner.

The property market may be affected by investment restrictions, migration adjustments, and rental supply initiatives. Some strategies aim to reduce demand and competition, while others focus on building more homes to meet increased buyer demand and reduce competition.

The takeaway

There are many different levers government at both state and federal levels can adjust which will have minor and major impacts across the housing market. Ultimately, both parties seek to do the most good for the most Australians with many of the proposed policies are actually fairly consistent and compatible. Safe and affordable housing is going to be a major factor in the upcoming election, with fallout for homeowners and investors no matter which party is elected.