Labor’s 2025 Federal Housing Policy – What You Need to Know

Mitchell James Posted on 07 May 2025

In 2025, the Federal Government announced a range of housing policy measures aimed at improving affordability, increasing supply, and supporting vulnerable Australians. These policies cover everything from social housing to incentives for first-home buyers. Below is an overview of the key components of Labor’s current housing strategy and what they may mean for buyers, renters, and industry professionals.

1. Housing Australia Future Fund (HAFF)
A central feature of the housing plan is the $10 billion Housing Australia Future Fund. The fund aims to build 30,000 new social and affordable homes over five years, with specific allocations including:

20,000 social housing units, of which 4,000 are reserved for women escaping domestic violence and older women at risk of homelessness
10,000 affordable rentals for essential workers such as nurses, police officers, and cleaners

Additional funding includes:

$200 million for remote Indigenous housing
$100 million for crisis and transitional housing
$30 million for veteran housing initiatives

This fund is intended to support housing access for groups traditionally underserved by the private market.

2. Help to Buy Scheme – Expansion
The Help to Buy scheme is a shared equity program where the government contributes up to 40% of the purchase price for new homes, or 30% for existing homes. This makes the government a co-owner, reducing the financial burden on buyers.
In 2025, the program was expanded with a goal to assist up to 40,000 first-home buyers. The scheme may appeal to buyers who are comfortable with a shared equity model and are looking to reduce upfront costs.

3. First Home Guarantee Expansion
The First Home Guarantee enables eligible buyers to purchase a property with a 5% deposit without paying lenders' mortgage insurance.
Recent changes include removal of income caps and participant limits, broadening access to a wider range of first-home buyers. This policy is designed to assist more people in entering the property market with lower savings.

4. National Housing Accord
In cooperation with state and territory governments, the National Housing Accord aims to facilitate the construction of 1.2 million new homes by mid-2029.
The Federal Government has committed $43 billion to support this initiative, which focuses on increasing overall housing supply to address demand pressures nationwide.

5. Affordable Housing Initiatives
A separate initiative targets the construction of up to 100,000 homes for first-home buyers only, funded by a $10 billion commitment.
These homes will be unavailable to property investors, which is intended to prioritise access for owner-occupiers and reduce competition in the entry-level market.

6. Rent Assistance & Crisis Housing
A 45% increase to Commonwealth Rent Assistance is being rolled out, with the goal of benefiting more than one million low-income households.
Additionally, $1.2 billion has been allocated for crisis and transitional accommodation, supporting Australians who are experiencing housing stress or homelessness.

7. Ban on Foreign Purchases of Existing Properties
A two-year ban has been introduced on the purchase of existing residential properties by non-citizens. This measure is intended to free up existing housing stock for local buyers.

Final Thoughts
These policies represent a significant shift in Australia's housing strategy, with an emphasis on government investment, access for first-home buyers, and housing for vulnerable groups. The effectiveness of these measures will likely depend on how they are implemented and how the market responds.
For buyers, sellers, and investors, staying informed about these changes is important. If you’re considering a property purchase or want to understand how these policies might apply to your situation, our team at One Agency EPG is available to provide further insights.

By Mitchell James, Head of Sales – One Agency EPG