REPLACEMENT EXPLANATORY STATEMENT

Issued by authority of the Minister for Housing, Minister for Homelessness and Minister for Cities

Help to Buy Act 2024

Help to Buy Program Directions 2025

Subsection 24(1) of the Help to Buy Act 2024 (the Act) provides that the Minister may, by legislative instrument, give the Board of Housing Australia (the Board) directions about the performance of Housing Australia’s functions under the Act. The Minister must not make a legislative instrument under the Act unless satisfied of the matters listed in section 46 of the Act (about State and Territory approval), and having regard to the object of the Act. The Board must also ensure Housing Australia complies with the requirements of the Act, the Housing Australia Act 2018 (Housing Australia Act) and the Housing Australia Investment Mandate Direction 2018 (Investment Mandate).

The Housing Australia Act established Housing Australia to improve housing outcomes for Australians. Housing Australia is a corporate Commonwealth entity in the Treasury portfolio and is governed by an independent board. Housing Australia (previously, the National Housing Finance and Investment Corporation) commenced operation on 30 June 2018.

The Act established the Help to Buy Scheme (Help to Buy) as a Commonwealth shared equity scheme administered by Housing Australia. Help to Buy assists low and middle income earners to purchase new or existing homes by accessing an equity contribution from the Commonwealth. The Act enables Housing Australia, on behalf of the Commonwealth, to, among other things, administer Help to Buy in States that have referred power for the Scheme, as well as in the Territories.

The purpose of the Help to Buy Program Directions 2025 (the Instrument) is to direct Housing Australia in relation to the performance of Housing Australia’s functions under the Act. In making these directions the Minister is satisfied of the matters in section 46 of the Act (about State and Territory approval), and having regard to the object of the Act and that the directions are not inconsistent with the Act or the Housing Australia Act. In administering Help to Buy, the Board is subject to the requirements of the Act, the Housing Australia Act, and the Instrument.

The Instrument deals with a range of matters to ensure the effective operation of Help to Buy. This includes defining key terms; initial eligibility and ongoing participation requirements; entry, variation and exit from Help to Buy; monitoring of compliance; allocation of places in Help to Buy; and other administrative arrangements.

Access to home ownership for low and middle income Australians has been decreasing in recent decades. According to the Grattan Institute’s 2022 The Great Australian Nightmare report, between 1981 and 2021, home ownership rates for 25-34 year olds in the two lowest household income quintiles fell from 52 per cent to 32 per cent. Similarly, for 45-54 year olds in the same two quintiles, home ownership rates have declined from 71 per cent to 53 per cent.

The key barriers to home ownership are saving for a deposit and servicing a loan. It has been increasingly difficult for homebuyers to save for a deposit and, coupled with the increased costs of servicing mortgages, this has made accessing home ownership increasingly challenging for low and middle income earners.

Help to Buy is designed to improve housing outcomes for eligible Australians by reducing the upfront deposit hurdle and ongoing mortgage repayments with purchasing a home.

Under Help to Buy, Housing Australia provides eligible participants a Commonwealth equity contribution of up to 30 per cent of the purchase price of an existing home, and up to 40 per cent of the purchase price of a new home.

Public consultation was undertaken on an exposure draft of the Instrument in the period 23 April 2024 to 21 May 2024. Issues raised in consultation included proposals to increase the income and property price caps; targeting Help to Buy to certain cohorts beyond low and middle income Australians; providing greater flexibility to support new home construction, including by enabling additional funding to complete construction where building costs rise; and providing greater flexibility for the timing of funding for drawdowns during new home construction and the loan period. A number of changes to the Instrument were made following consultation, including increasing the income and property price caps; and increasing flexibility for arrangements for supporting new home construction, including the timing of drawdowns, flexibility of loan terms, accommodating cost increases during new home construction and allowing construction timeframes to extend to 36 months. Other changes made include allowing single parents (which includes single legal guardians) to qualify using the joint income cap. Consultation was also undertaken with all states and territories for the required period under the Act. No state or territory made a written objection to the Minister concerning the making of the Instrument.

The Instrument is exempt from the sunsetting regime set out in Part 4 of Chapter 3 of the Legislation Act under regulations made for the purposes of paragraph 54(2)(b) of the Act. Item 3 of the table in section 11 of the Legislation (Exemptions and Other Matters) Regulation 2015 provides for class exemptions from sunsetting if the instrument is a direction by the Minister to any person or body. The Instrument is a direction from the Minister to Housing Australia, and therefore is exempt from sunsetting. Sunsetting is not appropriate as the direction is intended to remain in place until revoked by the Minister.

The Instrument is also exempt from disallowance under section 42 of the Legislation Act under regulations made for the purposes of paragraph 44(2)(b) of that Act. Item 2 of section 9 of the Legislation (Exemptions and Other Matters) Regulation 2015, provides for class exemptions from disallowance if the instrument is a direction by the Minister to any person or body. The Instrument is a direction from the Minister to Housing Australia, and therefore is exempt from disallowance.

The Help to Buy Scheme forms part of a range of support that the Government is providing to support Australians to own their own home. Accordingly, given the urgency of addressing the housing issue in Australia, the Government sought and received legislative authority from Parliament when legislation to establish the Help to Buy Scheme received passage through Parliament in 2024. In passing the legislation, Parliament was aware and accepted that significant elements of the regulatory scheme for the Help to Buy Scheme would be included in the Directions to enable early delivery of this important Scheme for eligible home buyers. Accordingly, the exemption recognises that executive control is intended in this instance where a ministerial direction is made to Housing Australia.

The Instrument is a legislative instrument for the purposes of the Legislation Act 2003 (Legislation Act). The Instrument commences the day after registration.

The Government will monitor the operation of the Help to Buy Scheme to ensure that it is operating as intended consistent with section 45 of the Act, which requires the Minister to cause a review of the Scheme as soon as possible after the end of three years after the commencement of the Act.

Details of the Instrument are set out in Attachment A.

The Office of Impact Analysis has been (OIA) has been consulted (OIA ref: OBPR22-02329) and agreed that an Impact Analysis is required. The full text of the Impact Analysis has been included at Attachment B. The regulatory costs for this measure is estimated to be $5.88 million per year.

ATTACHMENT A

Details of the Help to Buy Program Directions 2025

PART 1 – INTRODUCTION

Division 1 – Preliminary

Section 1 – Name of the Instrument

This section provides that the name of the Instrument is the Help to Buy Program Directions 2025 (the Instrument).

Legislative references in this attachment are to the Instrument unless otherwise stated.

Section 2 – Commencement

The Instrument commences the day after it is registered on the Federal Register of Legislation.

Section 3 – Authority

Section 3 provides that the Instrument is made under the Help to Buy Act 2024 (the Act).

Division 2 – Simplified outline of the Instrument

Simplified outline of the Instrument

Section 4 provides the simplified outline of the Instrument, which is a summary of the Instrument and a description of its purpose. This outline – in addition to sections 11, 26, 41 and 46 (simplified outlines of Parts 2 to 5) – is intended to help readers better understand the substantive provisions and is not intended to be comprehensive.

Section 4 provides a summary of the five parts of the Instrument, being:

•                 Part 1 covers preliminary matters and definitions used in the Instrument;

•                 Part 2 addresses when Housing Australia may enter Help to Buy arrangements in participating States and the Territories, including by specifying the applicants and the properties that are eligible for Help to Buy;

•                 Part 3 deals with the participation requirements that Housing Australia must impose on participants in the Scheme and how Housing Australia monitors and manages compliance with these ongoing obligations set out in Schedule 1 to the Instrument, including dealing with non-compliance;

•                 Part 4 outlines when and how participants can exit the Scheme early, including arrangements for deceased estates; and

•                 Part 5 provides Housing Australia with directions on the administrative aspects of the Scheme to ensure the Scheme’s integrity and establish appropriate governance systems.

Division 3 – Definitions

Definitions

Sections 5, 6 and 10 of the Instrument create a number of new definitions which are central to Help to Buy, in addition to the definitions set out in the Act. These new definitions are:

•                 adequately insured – where the relevant property meets the insurance requirements specified in the arrangement when entering into an arrangement. Relevant properties must be adequately insured for the entirety of the arrangement to protect the Commonwealth share and the participant’s interest (for example, in the event of a natural disaster such as a bushfire or flood). Housing Australia cannot enter into an arrangement unless it is satisfied that the property, once purchased, will meet the insurance requirements;

•                 administrative costs – includes but is not limited to legal costs, conveyancing costs and stamp duty (where applicable);

•                 agreed percentage – signposted to section 16 (explained later in this Explanatory Statement);

•                 allocated – a place is allocated where it is made available for use for an arrangement in relation to property in a particular State or Territory under section 48 or 50;

•                 arrangement – refers to a Help to Buy arrangement. This is a shared equity arrangement that Housing Australia, on behalf of the Commonwealth, enters into with an eligible purchaser of residential property located in a participating State or a Territory. The shared equity arrangement involves a contract with the eligible purchaser and Housing Australia that, on behalf of the Commonwealth:

-          contributes a portion of the purchase price for a residential property;

-          is entitled to a return on this contribution at the time of sale of the property based on the value of the relevant property; and

-          has security over the relevant property through a mortgage or other right relating to the property;

•                 Australian Defence Force – as defined in the Defence Act 1903;

•                 Australian Statistical Geography Standard – refers to the Australian Statistical Geography Standard (ASGS) Edition 3, as published by the Australian Statistician on 20 July 2021 (available on the Australian Bureau of Statistics (ABS) website (https://www.abs.gov.au)). It is a classification of Australia into a hierarchy of statistical areas;

•                 capital city – is the Greater Capital City Statistical Area in a State or the Northern Territory as defined in the Australian Statistical Geography Standard;

•                 committed – a place is committed if:

-          an applicant or applicants have applied for an arrangement;

-          Housing Australia has not yet approved the application;

-          Housing Australia has decided that it is reasonably likely that the applicant or applicants, will satisfy the applicant eligibility requirements, disregarding the financial capacity test; and

-          the applicant or applicants have obtained mortgage pre-approval from a participating lender for funds they are likely to require to purchase the relevant property taking into account their deposit and the Commonwealth’s contribution;

•                 Commonwealth company – as defined in section 89 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act);

•                 Commonwealth entity – as defined in section 10 of the PGPA Act;

•                 Commonwealth share – signposted to section 25 (explained later in the Explanatory Statement);

•                 Commonwealth share percentage – signposted to paragraph 25(1)(b) (explained later in the Explanatory Statement);

•                 CPI index number – signposted to section 56 (explained later in this Explanatory Statement);

•                 credit activities – takes the same meaning as in the National Consumer Credit Protection Act 2009;

•                 credit service – takes the same meaning as in the National Consumer Credit Protection Act 2009;

•                 dependent child – an individual that is either a child of a parent or guardian under subsections 5(2) to (7) of the Social Security Act 1991 or is living with a parent or guardian and is in receipt of a disability support pension under the Social Security Act 1991;

•                 disqualifying property interest – an individual holds a disqualifying property interest if the individual holds a freehold interest in real property in Australia, a lease of land in Australia for at least 50 years (including a renewal or extension of that lease), or a company title interest in land in Australia, or a beneficial interest in any of these interests (accordingly a 12 month residential lease for example is not a disqualifying property interest);

•                 eligible applicant – signposted to section 17 (explained later in the Explanatory Statement);

•                 eligible property – signposted to section 21 (explained later in the Explanatory Statement);

•                 financial capacity test – for an applicant means the test in section 20;

•                 hardship – includes financial hardship;

–               Beyond specifying that the term includes financial hardship, ‘hardship’ should take on its ordinary meaning. Macquarie Dictionary defines ‘hardship’ as a condition that bears hard upon one; severe toil, trial, oppression, or need. It is expected that Housing Australia will apply appropriate judgement and take relevant circumstances and considerations into account when determining whether to exercise its discretion in relation to a claim of hardship.

•                 income test – for an applicant is outlined in section 19;

•                 Investment Mandate – as defined in section 5 of the Housing Australia Act 2018 (Housing Australia Act). It refers to the legislative instrument made by the Minister to the Board of Housing Australia under the Housing Australia Act. This instrument is the Housing Australia Investment Mandate Direction 2018;

•                 joint income threshold – signposted to section 8 (explained later in the Explanatory Statement);

•                 lender – a person who carries on a business of making loans;

•                 mortgage requirements – signposted to section 22 (explained later in the Explanatory Statement);

•                 new home – a dwelling which meets the requirements of paragraph 40‑75(1)(a) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), excluding a dwelling that, prior to sale, was, or was made available for, rent or lease as commercial residential premises or residential premises (with commercial residential premises and residential premises defined in the GST Act);

•                 new home contract requirements – signposted to section 23 (explained later in the Explanatory Statement);

•                 participant –refers to an individual who is a party to an arrangement. Where there are two parties (i.e. two individuals) to an arrangement, they are known as joint participants. The following applies in relation to references to a participant in the Instrument in the case of joint participants:

–               provision refers to a participant giving notice of a matter – one of the joint participants can give notice to Housing Australia on behalf of both participants;

–               provision refers to a participant taking an action (that in law, both participants must take jointly) – both participants must jointly take the action where needed (for example, joint participants could only sell the property by the participants acting jointly); and

–               all other references – each participant in the arrangement.

•                 participating lender – means a lender that has been approved by Housing Australia under section 62 (explained later in the Explanatory Statement) and the lender has not been notified in writing that the approval has been revoked;

•                 participation requirements – signposted to section 28 and Schedule 1 (explained later in the Explanatory Statement);

•                 price cap – signposted to section 7 (explained later in the Explanatory Statement);

•                 place – where an arrangement is available to be entered into;

•                 population – of a State, a Territory, or Australia for a specific financial year means the population of the State, Territory or Australia, as most recently estimated and published by the Australian Statistician as at 30 June of the previous financial year;

–               In 2025, the Australian Statistician’s population estimates could be viewed in quarterly publications titled ‘National, state and territory population’ published by the Australian Statistician on the ABS website (https://www.abs.gov.au/);

•                 purchase price – when referring to house and land packages or separate purchases of land and construction of a dwelling on that land, it is the sum of the land’s purchase price and the contract price to construct the dwelling on the land;

•                 regional centre – signposted to subsection 7(2) (explained later in the Explanatory Statement);

•                 relevant property – the residential property that is, or is to be, the subject of an arrangement;

•                 repayment – a payment made by a participant to decrease the Commonwealth share in relation to the relevant property;

•                 shared equity scheme – another scheme (other than Help to Buy) where the Commonwealth, or a State or Territory contributes to the cost of acquiring a residential property, is entitled to a return on the contribution, and secures a return on that contribution by mortgage or other means;

•                 single – an individual that does not have a spouse or de facto partner;

•                 single income threshold – signposted to section 8 of the Instrument;

•                 single parent – a single individual with at least one dependent child;

•                 Statistical Area Level 4 area – as defined in the Australian Statistical Geography Standard;

•                 taxable income – as defined in the Income Tax Assessment Act 1997;

•                 the Act – Help to Buy Act 2024;

•                 timeframe requirements – signposted to section 24 (explained later in the Explanatory Statement);

•                 used – where an application to enter into an arrangement is approved by Housing Australia; and

•                 wage price index number – for a quarter, means the Wage Price Index (total hourly rates of pay excluding bonuses/all sectors/all Australia/original) number published by the Australian Statistician for that quarter;

–               In 2025, the Wage Price Index could be viewed on the ABS website (https://www.abs.gov.au/).

Price caps

Section 7 of the Instrument sets out the residential property price caps that apply to the Scheme. These price caps restrict the purchase price of the relevant property that may be purchased under Help to Buy. The intention of the price caps is to support eligible applicants to purchase homes that meet their needs.

The table at subsection 7(1) (see below) contains the price caps that apply in each State as well as the Australian Capital Territory, Northern Territory, Jervis Bay Territory and Norfolk Island, Christmas Island and Cocos (Keeling) Islands. The price caps have been set having regard to the price of residential property in the different property markets whilst also ensuring that the caps are easy for Scheme applicants to understand.

The States are divided into two categories: the first category is the capital city and regional centres, and the second category is the rest of the State. Each State has higher price caps in the capital city and regional centres, and lower caps for other regions, which is reflective of the housing market and differing price points based on location.

The Australian Capital Territory and the Northern Territory are not divided into categories. A single price cap applies to all residential property purchased within each territory.

The geographic boundaries of the capital city of a State and the Northern Territory are those set out in the relevant Greater Capital City Statistical Area determined in accordance with Edition 3 of the Australian Statistical Geography Standard (ASGS) Volume 1 – Main Structure and Greater Capital City Statistical Areas. Further information about the ASGS is available on the ABS website: www.abs.gov.au.

Regional centres with higher price caps in New South Wales, Victoria and Queensland are also outlined in the table at subsection 7(2) and are based on the Statistical Area Level 4 area set out in Edition 3 of the ASGS. The regional centres were selected on the basis that they have significantly higher population levels, which influence dwelling prices. The price caps for the regional centres are higher than other regional areas as median dwelling prices in these regional centres are typically significantly higher than other regional areas. The regional areas for New South Wales are Newcastle and Lake Macquarie, Illawarra, Central Coast, Mid-North Coast, Coffs Harbour–Grafton and Richmond–Tweed. The regional area for Victoria is Geelong and for Queensland the regional areas are the Gold Coast and the Sunshine Coast.

Single and joint income thresholds and indexing these income thresholds

The Instrument also includes the income thresholds for applicants and participants to be eligible for the Scheme. Section 8 (read in conjunction with section 19) provides that, in the financial year, the income threshold for a single participant (other than a single parent) is $100,000 and, for joint participants or single parents (which includes single participants that are legal guardians), the combined income threshold is $160,000.

These thresholds are indexed to the wage price index in accordance with section 9. The intention of indexation is to ensure the income thresholds retain their real value throughout the life of the Scheme.

The amount of the single and joint income thresholds are indexed on 1 July 2026 and then each subsequent 1 July. The indexed threshold amounts for the next financial year are calculated by multiplying the thresholds for the previous financial year by the indexation factor for 1 June for the previous financial year. For example, the indexation of the thresholds that occurs on 1 July 2026 is calculated by multiplying the $100,000 and $160,000 thresholds respectively by the indexation factor for 1 June 2026.

The indexation factor is calculated to three decimal places by rounding up if the fourth decimal place is five or more. The indexation factor (IF) for a financial year is calculated as follows:

The wage price index number (as defined in section 5) for a quarter is the Wage Price Index number published by the ABS for that quarter (available on the ABS website (https://www.abs.gov.au). The Wage Price Index measures the change in the price of wages and salaries (excluding bonuses) in the Australian labour market over time.

PART 2 – ENTERING INTO HELP TO BUY ARRANGEMENTS

Division 1 – Introduction

Simplified outline of Part 2

The simplified outline of this Part, in section 11, provides a summary of the Part and describes its purpose. It is intended to assist readers to understand the substantive provisions and is not intended to be comprehensive. There are six Divisions in this Part (including Division 1):

•                 Division 2 sets out the overarching requirements for entry into Help to Buy arrangements;

•                 Division 3 defines the class of individuals with whom Housing Australia can enter into Help to Buy arrangements;

•                 Division 4 defines the class of properties that can be purchased under a Help to Buy arrangement;

•                 Division 5 sets out the standards in relation to mortgages, contracts, and timeframes for the construction of new homes; and

•                 Division 6 covers the ‘Commonwealth share’ in a relevant property, and the circumstances in which the ‘Commonwealth share percentage’ can be adjusted.

Application of Part 2

Section 12 notes that the provisions in Part 2 only apply to the performance of Housing Australia’s functions under the Act in participating States and the Territories. Where a State is a cooperating State or a withdrawn State, the Act does not permit Housing Australia to enter into new arrangements in relation to properties in that State. 

Division 2 – When can Housing Australia enter a Help to Buy arrangement?

Housing Australia can only enter arrangements where the Instrument permits

Section 13 states that Housing Australia is only able to enter into arrangements where this is permitted by the Instrument, and these arrangements must contain all necessary terms and conditions to ensure Housing Australia’s compliance with the Instrument. However, provided the arrangement’s terms and conditions are consistent with the Instrument, the Instrument does not limit what terms and conditions may be included in an arrangement. This includes matters which are incidental to the directions outlined in the Instrument, such as the form and detail of application forms or evidence that may need to be provided to justify an exception from eligibility criteria. These matters may be determined by Housing Australia and outlined to each participant as part of the arrangement.

Housing Australia may include standard mortgage obligations in its contractual arrangements with participants, given the Commonwealth’s interest in participants’ homes will be secured through a second-ranking mortgage. Examples of these mortgage obligations that could be included are:

•                 restrictions on dealing with the property, or lodging a caveat against the property, except as permitted; and

•                 a right to obtain valuations of the property.

Housing Australia may enter arrangements with one or more applicants

When Housing Australia may enter into an arrangement

Subsection 14(1) provides that Housing Australia may only enter into arrangements where the following steps are followed:

•                 the applicant or applicants (for joint arrangements) apply for a place in Help to Buy in accordance with the procedures set out by Housing Australia;

•                 Housing Australia approves the application;

•                 this approval is still valid prior to the arrangement being entered into; and

•                 entering the arrangement is consistent with the requirements for allocation of Help to Buy places in Division 2 of Part 5 of the Instrument.

For the avoidance of doubt, joint applications may include individuals in a recognised relationship (for example, a couple that is married or in a de-facto relationship) and individuals in alternative arrangements (for example, two siblings, a parent or guardian and child, or two friends).

Application approval is not valid if the approval has expired or been revoked. Note 1 to subsection 14(1) provides that section 15 covers circumstances in which Housing Australia may revoke application approval before entering an arrangement. Note 2 to subsection 14(1) clarifies that Division 2 of Part 5 affects the timing of when Housing Australia can enter Help to Buy arrangements in particular jurisdictions and provides for the expiry of application approvals in particular circumstances.

Subsection 14(2) outlines the requirements for an application for an arrangement. Applications must be in writing and, if Housing Australia has in writing published on its website an approved form, must be in the approved form. The approved form may specify information and documents that should accompany the form.

Subsection 14(3) provides that applications must be considered by Housing Australia in the order of the date of receipt, subject to all required information to support the application having been provided. This ensures that applications from later applicants are not unfairly considered first and that all applicants get a fair chance to be allocated a place and be considered for entry into the Scheme based on timing of receipt of the applications. For example, if three applications were received one after the other. The first and third application received included all the required information, but the second application received did not include all required information. Housing Australia must consider the first application received then the third application received. The second application received will not be considered until all required information to support the application has been received.

When Housing Australia may approve an application to enter into an arrangement

Subsection 14(4) provides that the following criteria must exist at the time Housing Australia makes a decision to approve or reject an application:

•                 Housing Australia must be satisfied of all of the following;

–               the vendor of the relevant property will carry out arm’s-length dealings with the applicant/s;

–               the mortgage requirements will be met by the settlement date;

–               the relevant property will be adequately insured once purchased;

•                 the arrangement relates to the purchase of a whole property (exceptions apply);

•                 the applicant/s are eligible;

•                 the relevant property is eligible;

•                 approving the application is consistent with the requirements for allocation of Help to Buy places in Division 2 of Part 5; and

•                 for arrangements relating to new homes, Housing Australia must be satisfied that the new home contract requirements will be met by the settlement date and timeframe requirements will be met.

To avoid doubt, it is intended that ‘arm’s-length’ takes its ordinary meaning. This requires that the parties involved in the sale and purchase of the relevant property are unaffiliated and acting in their own interests.

The note to the subsection clarifies that Division 2 of Part 5 outlines when Housing Australia may approve applications in particular jurisdictions.

Circumstances in which Housing Australia may revoke approvals

Section 15 deals with Housing Australia’s ability to revoke approvals to enter into Help to Buy arrangements.

Subsection 15(1) provides that Housing Australia may revoke an approval under subsection 14(4) prior to entering the arrangement (to which the approval relates) if any of the above criteria in subsection 14(4) cease to be satisfied at that time. The note to the subsection clarifies that there are circumstances in which Housing Australia must revoke an approval and these circumstances are stated in section 53. The second note clarifies that this subsection enables approvals to enter into arrangements to be revoked and does not cover situations after an arrangement has already been entered into.

Subsection 15(2) states that if a criterion is not satisfied but the arrangement has been entered into, then the approval cannot be revoked. However, the arrangement may provide Housing Australia with the power to terminate the arrangement because of certain breaches or in particular circumstances. Where the terms of the arrangement provide Housing Australia with this power, paragraph 15(2)(b) of the Instrument provides that section 15 does not limit the operation of these terms.

Extent of Commonwealth contribution – minimum and maximum contributions to purchase price

Subsection 16(1) outlines how much Housing Australia, on behalf of the Commonwealth, can contribute to the purchase price of the relevant property, when entering into a Help to Buy arrangement. For all dwellings purchased under the Scheme, Housing Australia, on behalf of the Commonwealth contributes a minimum of 5 per cent of the purchase price of the property. For existing dwellings, the Commonwealth’s maximum contribution is 30 per cent of the purchase price of the property. For new homes, the Commonwealth can contribute a maximum of 40 per cent of the purchase price for the home (typically consisting of the contract price for the construction and purchase price for the land).

To ensure that all participants can avoid lenders’ mortgage insurance (LMI), which is an additional cost passed onto homeowners who are required to borrow more than 80 per cent of the property’s assessed value, Housing Australia must ensure that the Commonwealth’s contribution, in addition to the participant’s deposit, is at least 20 per cent of the assessed value. This requirement is imposed on Housing Australia in subsection 16(2). As an example, if the participant is contributing 5 per cent of the property price as a deposit (because this is as much as the participant can contribute in their personal and financial circumstances), Housing Australia on behalf of the Commonwealth must contribute at least 15 per cent of the assessed value.

Subsection 16(3) stipulates that the participant must contribute as much as possible for the deposit as can reasonably be required, taking into account their personal circumstances and financial capacity. Housing Australia must also take into account the amount the participant has requested in their application. The subsection limits the size of the Commonwealth’s equity contribution where the participant has clear capacity to put forward a larger deposit. Financial capacity must be considered, but is not determinative of the contribution limit – personal circumstances must also be considered. As an example, if two individual participants have the same level of income, expenses and similar personal circumstances, but one of the participants has significantly more in savings than the other, then that participant would be expected to contribute more towards the deposit of the property. This would result in Housing Australia providing a larger contribution towards the purchase price for the participant who had a smaller amount in savings.

In practice, subsections 16(2) and 16(3) mean that Housing Australia must typically expect to only contribute the amount necessary to avoid LMI and guarantee the participant can become a homeowner, whilst managing repayments. The agreed percentage that the Commonwealth contributes is therefore ultimately based on the maximum percentage of the purchase price that the participant is able to contribute, taking into account the mortgage the participating lender is willing to offer the participant.

To avoid doubt, the note to subsection 16(3) clarifies that the agreed percentage that the Commonwealth contributes must fall within the limits specified in subsection 16(1) at the time the Help to Buy arrangement is entered. However, the percentage may subsequently fall outside of the range in subsection 16(1) as it is possible to vary the percentage of the value of the relevant property to which the Commonwealth is entitled in accordance with subsections 25(3) and (4) on or after settlement.

Adjustments in the Commonwealth share

Subsection 25(1) provides that Housing Australia must ensure that each arrangement provides for the Commonwealth share, the Commonwealth share percentage, and the ability for Housing Australia to increase or decrease the Commonwealth share and the Commonwealth share percentage in accordance with section 25.

Housing Australia must ensure that the Commonwealth share and Commonwealth share percentage in each arrangement are updated when any such adjustments are made.

The note to subsection 25(1) highlights that the definition of “shared equity arrangement” in subsection 7(1) of the Act enables the Commonwealth entitlement to be worked out by reference to the value of a property subject to the scheme at one or more times. This means that a return entitlement for any arrangement must be worked out based solely on the value of the property under the arrangement.

Subsection 25(2) states that the Commonwealth share in the relevant property represents the return that the Commonwealth is entitled to under a Help to Buy arrangement in relation to the property. At any particular time, the Commonwealth share can also be expressed as a percentage of the value of the relevant property. This percentage is defined as the ‘Commonwealth share percentage’. The Commonwealth share percentage at the time Housing Australia and the participant enter into the Help to Buy arrangement is the agreed percentage. The Commonwealth share percentage may be adjusted in accordance with subsections 25(3) and (4).

The note to subsection 25(2) clarifies that the precise monetary value of the Commonwealth share varies depending on the time at which it is calculated, even where the Commonwealth share percentage remains unchanged. If, over the life of an arrangement, there are no special circumstances or repayments made by the participant then the Commonwealth share percentage is not adjusted in accordance with section 25 and remains the initial agreed percentage by Housing Australia. However, as the value of the relevant property changes with time, so does the precise monetary value of the Commonwealth share.

As an example, a participant purchased a property under Help to Buy with the property purchased for a price of $500,000 with the Commonwealth contributing $100,000. The Commonwealth share percentage at the time the Help to Buy arrangement was entered (agreed percentage) was 20 per cent of the purchase price (value of the property upon entry into Help to Buy). A few years later, the property is valued at $600,000 and the Commonwealth share percentage remains unchanged. At this point in time, the Commonwealth share in the property is valued at $120,000. As an alternative example, if the property was valued at $400,000 a few years after it was purchased, then the Commonwealth share in the property would be valued at $80,000.

Subsection 25(3) requires Housing Australia to ensure that an arrangement enables Housing Australia, on or after settlement, to increase the Commonwealth share percentage without the Commonwealth making any additional financial contributions. The table in subsection 25(3) describes two circumstances where such an increase is permitted.

Table item 1 provides for the situation in which the value of the relevant property for the purpose of settlement, as assessed by the participating lender, is lower than the purchase price, ascertained when the Help to Buy arrangement is entered into. When assessing customers for a home loan, lenders typically value the property being purchased in order to calculate the loan to value ratio (LVR). In some scenarios, the participating lender may value the property at lower than its purchase price. In this circumstance, to ensure the Commonwealth share is preserved, the Commonwealth share percentage may be increased so that the final Commonwealth share percentage is based on the initial monetary contribution of the Commonwealth as a proportion of the final valuation. The example in subsection 25(3) illustrates this as the Commonwealth share percentage is calculated as $150,000 divided by the final valuation of $475,000, rather than the original calculation of $150,000 divided by $500,000. This adjustment increases the Commonwealth share from 30 per cent to 31.58 per cent and ensures the Commonwealth does not suffer a loss in relation to its original contribution, while also ensuring the participant does not have to make an additional, potentially significant, contribution at short notice.  

Table item 2 in subsection 25(3) sets out circumstances that can result in an increase in the Commonwealth share percentage. This is where Housing Australia considers that the property’s value has reduced, or is likely to reduce, as a result of a participant’s negligence, fraudulent behaviour, or other unreasonable, deliberate or reckless act or omission. In this case, a valuation is carried out, and the Commonwealth share is increased in order to preserve what would have been the value of the Commonwealth share if not for the abovementioned act or omission. For the avoidance of doubt, where the Commonwealth share is increased under these circumstances, the participating lender will continue to hold the first‑ranking mortgage on the relevant property. This means that when the property is sold, the home loan with the participating lender, including any applicable interest, fees and other charges, is repaid first. 

This direction has been provided to ensure that, although the object of the Act is to improve housing outcomes for Australians, the Commonwealth can also protect its financial interests. Any increase in the Commonwealth share is assessed based on objective criteria by Housing Australia to ensure that it is reasonable and necessary to preserve the Commonwealth’s financial interest.

Subsection 25(4) provides that the Commonwealth share percentage must be reduced by Housing Australia where the participant:

•                 is required to make repayments of the Commonwealth share due to a breach of ongoing conditions imposed on the participant (refer to section 37);

•                 willingly makes voluntary early repayments (refer to section 43); or

•                 makes qualifying home improvements which add value to the property (refer to section 60).

In these situations, the reduction in the Commonwealth share is mandatory as there have been repayments made directly by the participant to Housing Australia, or the participant has followed the necessary procedures and made home improvements at their own cost, which increase the property’s value. Mandating the decrease in the Commonwealth share recognises that these circumstances necessitate a reduction in the Commonwealth’s equity as the participant has taken steps to increase their own equity share in the property and is therefore entitled to a greater return when the property is sold.

Division 3 – Who is an eligible applicant?

Eligible applicant

Section 17 sets out that an applicant or joint applicants may only be approved by Housing Australia to participate in the Help to Buy Scheme if at that time:

•                 they are an Australian citizen aged 18 years or over;

•                 they satisfy the income test set out in section 19:

–               where the applicant is an individual other than a single parent, their taxable income for their most recent income year in which the Commissioner of Taxation has given them a notice of income tax assessment is less than or equal to the single income threshold; or

–               where the applicants are joint applicants or the applicant is a single parent, their combined taxable income, or the single parent’s income, for their most recent income year in which the Commissioner of Taxation has given them a notice of income tax assessment is less than or equal to the joint income threshold;

:                 To illustrate the income test, a single applicant (not a single parent) applies for a Help to Buy arrangement in 2025-26. Their taxable income from 2024-25 will be considered (as shown in the applicant’s 2024-25 notice of assessment, which shows their taxable income is $80,000) against the single income threshold, which is $100,000 for the financial year in which they applied. In this scenario, the applicant would satisfy the income test, as their 2024-25 taxable income of $80,000 is less than the 2025-26 income threshold of $100,000.

•                 they satisfy the financial capacity test set out in section 20:

–               Housing Australia reasonably believes that based on the financial capacity of the applicant or applicants it is not expected that they could acquire the relevant property without the assistance of Help to Buy.

:                 Financial capacity of the applicant or applicants includes the value of their assets, their liabilities and their income at the time, and any other financial assistance of a material nature that is likely to be provided by the Commonwealth or a State or Territory; 

:                 To illustrate the financial capacity test, joint applicants want to purchase a property under Help to Buy for a purchase price of $600,000. They have a deposit of $50,000 and a participating lender has assessed that they have a borrowing capacity of $450,000. Housing Australia reasonably believes that their combined deposit and borrowing capacity are insufficient to enable them to purchase the property in their own right without the assistance of the Commonwealth’s contribution under Help to Buy. In this scenario, the joint applicants would satisfy the financial capacity test;

•                 Housing Australia is satisfied that they will treat the relevant property as their principal place of residence;

•                 they are not also receiving assistance from a home-buyer guarantee that is funded or provided by a Commonwealth entity or Commonwealth company, a shared equity scheme, or State or Territory loan or guarantee to support home ownership (this excludes home buyer assistance such as first home owner grants or tax concessions, or the First Home Super Saver scheme);

•                 they do not hold a disqualifying property interest or Housing Australia is satisfied that the exception to holding such an interest in section 18 applies;

•                 Housing Australia is satisfied that they will provide a deposit of at least two per cent of the purchase price for the relevant property and cover any additional costs associated with purchasing the property; and

•                 Housing Australia is satisfied that they, either individually or jointly with another applicant, will be the only registered owners of the property upon settlement.

The eligibility criteria ensures that only low and middle-income Australians who need assistance under Help to Buy can be considered as participants. This is balanced with the need to ensure that participants are required to contribute a minimum deposit of two per cent, not receive other government housing assistance (except where allowed under the Instrument), and treat the property as their principal place of residence and not as an investment property.

Exception to requirement not to hold interest in real estate

Section 18 provides that applicants may hold a disqualifying property interest in two circumstances.

•                 First, where the applicant is a single parent who holds a disqualifying property interest as a joint tenant or tenant in common for the relevant property but intends to become the sole registered owner of the relevant property through Help to Buy.

•                 Second, where the applicant is a single parent who holds a disqualifying property interest but intends to cease holding that interest within four weeks of becoming the registered owner of the relevant property under Help to Buy. For example, through the sale or disposal of the disqualifying property interest within the four-week period. Ceasing to hold a disqualifying property interest means that settlement has occurred on that previous property.

These exceptions assist in cases where, due to a divorce or other relationship breakdown, single parents with at least one dependent child are able to retain the family home to maintain continuity and minimise disruption for the family or start again in a new location without requiring a rental period in between homes. The term single parent extends to a single person who is a legal guardian of a child as the child is a dependent child of the person.

These exceptions, coupled with the eligibility criteria (at section 17), ensure only Australians who genuinely require assistance to enter the housing market are approved as participants under Help to Buy.

Division 4 – What is an eligible property?

Eligible property

If a person is an eligible participant, the property they choose must also be eligible for the participant to be approved for entry into the Scheme. Section 21 provides that a property is eligible if it is either an existing dwelling or a new home, and the purchase price does not exceed the relevant price cap for the location in which the property is based (see section 7 for price caps). To avoid doubt, the property must also be located in a Territory or a participating State.

Eligible properties are those where the person owns the dwelling, and the land the dwelling is affixed to (including through strata title). This means that new homes supported under Help to Buy include off-the-plan dwellings, house and land packages, land and separate contract to build home, and residential homes that have never been lived in. Existing dwellings supported under the Scheme include residential houses, apartments and townhouses where people have previously lived in these dwellings. Examples of properties that are not eligible properties are caravans (including caravans in caravan parks) and accommodation in retirement villages.

Division 5 – Contract, mortgage and timeframe requirements

Mortgage requirements

Section 22 sets out the mortgage requirements for a proposed Help to Buy arrangement. The purchase of the property must be financed by a single mortgage with a participating lender (the first mortgage). This does not preclude participants from splitting their mortgage with the participating lender into a variable rate loan and a fixed rate loan (or a combination of both), should they wish to do so. The loan cannot be provided as a line of credit.

This also does not take into account the mortgage that secures the Commonwealth share in the property, which the applicant (or joint applicants) must grant in favour of the Commonwealth (the second mortgage). At the time of settlement of the purchase of the relevant property, the applicant (or joint applicants) must also be the only counterparties to the mortgage agreement. The period of the mortgage must not exceed 30 years. However, where a new home is being constructed, interest only payments may apply during the construction period and the period of the mortgage may exceed 30 years during the construction period but once completion of construction occurs a 30 year maximum loan period commences to apply. This extended mortgage period only applies to a new home being constructed under a house and land package or a separate purchase of land and construction of a dwelling on that land. It does not apply to an off-the-plan dwelling.

The applicant (or joint applicants) must make scheduled payments of both the principal and interest throughout the life of the mortgage other than if:

•                 an interest-only arrangement applies during the construction period of a new home;

•                 a participating lender applies its hardship policies and processes to modify the terms of a mortgage agreement to assist a participant that is subject to financial hardship (for example, requiring only interest-only payments).

The section also does not prevent a participating lender from applying hardship policies and processes to vary a mortgage agreement in general to assist a participant experiencing hardship.

New home contract requirements

Section 23 provides for additional requirements for a contract relating to the construction of a new home. These additional requirements reflect the differences between these dwellings and existing dwellings. These requirements are intended to support the integrity of the Scheme. The additional requirements are that the construction contract must be a fixed-price contract under which the property purchase price does not exceed the price cap for the area in which the property is being built; the builder must hold all necessary licences and registrations and insurances to perform the work (including insurance for the construction of the new dwelling); the contract must be entered at arm’s-length; and the construction contract must require the builder to fully complete the dwelling; and the dwelling must be certified as fit for occupation.    

Timeframe requirements

Section 24 establishes timeframes in which the construction of a new dwelling must occur. The provision differentiates off-the-plan dwellings from other newly constructed dwellings. Construction of an off-the-plan dwelling must be commenced before the parties enter into the contract for sale, and the settlement must be no later than 90 days after the application to enter into a Help to Buy arrangement is approved. The timeframe requirements are consistent with the timeframe requirements and treatment of off-the-plan dwellings under the Home Guarantee Scheme. The 90-day period for settlement requirement ensures that the property is substantially complete and allows reasonable time for the issuance of titles, for example, to enable settlement to occur.

For all other newly constructed dwellings, the construction of the dwelling must commence within 12 months of the day on which the applicant becomes the registered owner of the relevant property. This is referred to as the ‘transfer date’. Further, the construction must be completed within 36 months of the transfer date.

These requirements seek to ensure that places for Help to Buy are not provided to an applicant or joint applicants where settlement of the purchase or construction of the dwelling will not be completed in a timely manner. However, subsection 24(2) provides that Housing Australia can adjust these timeframes for a particular arrangement if it is satisfied that it is necessary or appropriate to adjust them based on a consideration of the specific circumstances of the case. A circumstance that might give rise to an adjusted timeframe is unavoidable construction delays outside of the control of the purchaser. If Housing Australia agrees to adjust the timeframes, it must provide the applicant or applicants with written notice of its decision.

Division 6 – Securing Housing Australia’s entitlement to a return

Section 25 defines the ‘Commonwealth share’ in relation to a property purchased under the Scheme. The Commonwealth share is the return to which the Commonwealth is entitled under the arrangement concerning that property. The Commonwealth share is expressed as a percentage of the value of the property from time to time. The percentage is defined as the ‘Commonwealth share percentage’. This provision is discussed in greater detail above.

PART 3 – PARTICIPATING IN THE HELP TO BUY PROGRAM

Division 1 – Introduction

Simplified outline of Part 3

The simplified outline of this Part, in section 26, provides a summary of the Part and describes its purpose. It is intended to assist readers to understand the substantive provisions and is not intended to be comprehensive. There are six Divisions in this Part (including Division 1):

•                 Division 2, in combination with Schedule 1, covers the participation requirements for a Help to Buy arrangement;

•                 Division 3 requires Housing Australia to monitor participants’ compliance with the participation requirements;

•                 Division 4 sets out how Housing Australia manages participants’ non-compliance with the participation requirements;

•                 Division 5 covers the circumstances in which Housing Australia may vary arrangements; and

•                 Division 6 requires Housing Australia to ensure that it can terminate arrangements in particular circumstances.

Application of Part 3

Section 27 provides that the provisions in Part 3 only apply to the performance of Housing Australia’s functions under the Act in respect to:

•                 participating States and the Territories (see section 10 of the Act); and

•                 cooperating States (see section 15 of the Act).

Division 2 – Participation requirements

Arrangements must require compliance with participation requirements

Section 28 provides that Housing Australia must ensure that a Help to Buy arrangement requires each Scheme participant to comply with the rules set in Schedule 1 to the Instrument for the period of the arrangement. To avoid doubt, these rules do not apply where the arrangement has been brought to an early end (for example, where the property has been sold by the participant or where the participant has voluntarily repaid the Commonwealth share in full). These rules are defined as the ‘participation requirements’ for each arrangement.

Note 1 clarifies that the Instrument does not impose legal obligations on Scheme participants and that the participation requirements will only have legal force by virtue of the arrangement. The participation requirements are intended to be reflected in Housing Australia’s contract with participants (i.e. the arrangement when it is entered into). Note 2 identifies that the participation requirements do not relate to the income thresholds but that Housing Australia is required to impose consequences where a participant exceeds the income threshold by virtue of Division 4 of Part 3 of the Instrument (see below for discussion of Division 4 of Part 3).

Exceptions to sale of existing property requirement

Section 29 requires Housing Australia to ensure that an arrangement allows a participant to not comply with the participation requirement under clause 1.1 of Schedule 1, which provides that a single parent must not continue to hold a disqualifying property interest more than four weeks after becoming the registered owner of a property under Help to Buy. This would only be on the grounds that the participant is experiencing hardship or on other compassionate grounds.

Housing Australia can extend the four-week time period if they consider this appropriate based on the participant’s hardship or other compassionate grounds. However, participants must provide satisfactory evidence to Housing Australia demonstrating the existence of acceptable hardship or compassionate grounds to enable Housing Australia to provide an appropriate extension to the period.

The Instrument does not prescribe relevant factors, or examples of factors, that Housing Australia may or must take into account in exercising discretionary powers. The provisions are principles‑based and it is expected that Housing Australia will apply appropriate judgement and take relevant circumstances and considerations into account in making decisions that allow the exercise of discretion by Housing Australia. It is expected that this would be informed by applying the ordinary meaning of terms ‘hardship’ and ‘other compassionate grounds’ to the context of the relevant circumstances. Under this approach, a circumstance such as a participant needing to travel overseas to be with a terminally ill parent, thus making them temporarily unable to satisfy clause 1.1 of Schedule 1 (the participation requirements) could constitute hardship or other compassionate grounds.

This principles-based approach to these provisions in the Instrument is also subject to appropriate safeguards. Decisions made by Housing Australia will be subject to a review process that initially involves internal review by Housing Australia and, if a participant remains unsatisfied, external merits review by the Administrative Review Tribunal. Section 43 of the Help to Buy Act 2024 provides a power for the making of regulations to enable applications to be made to the Administrative Review Tribunal for review of specified decisions made by Housing Australia in the performance of its functions under that Act. It is the Government’s intention to recommend to the Governor-General for the making of regulations under this power to allow the review of a range of discretionary decisions made by Housing Australia, having regard to the guidelines issued by the Administrative Review Council. Public consultation on these draft regulations was undertaken from 15 September to 26 September 2025.

Additionally, it is expected that Housing Australia will publish material for the Help to Buy Scheme, including terms and conditions that apply to individual participants with the principles that Housing Australia will consider, where relevant, for the discretionary decisions and also put in place policies and procedures to apply these key concepts.

Exceptions to the principal place of residence requirement: all properties

Section 30 includes exceptions to the principal place of residence requirement within the participation requirements. These exceptions can apply to all properties – i.e. existing dwellings and new dwellings constructed. The exceptions allow Housing Australia to exempt a program participant from clause 1.3 of Schedule 1 to the Instrument, which requires a program participant to live at the property, when it is satisfied having regard to satisfactory evidence provided by the participant that it is impractical for the participant to meet that requirement. Circumstances that give rise to the exemption are:

•                 The program participant is a member of the Australian Defence Force (ADF) and is required to live in a different property due to a posting. Naval Reserve, Army Reserve, and Air Force Reserve members are not covered by this exemption.

•                 The program participant is required by their employer to relocate as part of their employment, and the participant has been employed by that employer for at least 12 months. Housing Australia may grant the exemption despite the participant having worked for the employer for less than 12 months if it is satisfied that the lesser period is appropriate, having regard to the nature of the ongoing employment relationship between the parties.

–               For example, Housing Australia may determine it is appropriate to grant an exception in circumstances where the participant’s immediate previous employment was for a related employer, or where the participant is a key employee in a very small team.

•                 The program participant, or a person for whom a participant exercises carer responsibilities, is suffering from a serious illness.

–               For example, Housing Australia may determine it is appropriate to grant an exception in circumstances where a participant has acquired a property in a small country town that is a considerable distance from major medical facilities and they or a close family member needs daily intensive treatment in a capital city. 

•                 Housing Australia can also exempt a participant for other compassionate grounds.  

–               As discussed above (in relation to section 29), ‘other compassionate grounds’ is not a defined term. It is expected that Housing Australia will take a principles-based approach to determining whether an exemption for other compassionate grounds appropriate. An example where Housing Australia may determine it is appropriate to grant an exception in circumstances where participant needs to travel overseas to be with a terminally ill parent.  

Subsection 30(2) allows Housing Australia to extend the period of the exemption in relation to ADF members for such period as it considers appropriate based on evidence provided. Housing Australia may then extend that period for any period it considers appropriate.

Subsection 30(3) establishes limitations on the length of time that the exemption can be in place for participants other than ADF members. In the case of exempting non-compliance due to employment relocation, Housing Australia may extend the period by up to two further 12-month periods. In all other cases, Housing Australia may extend the period by one or more 12-month periods.

Further, subsection 30(4) allows Housing Australia to, at any time in a period it has allowed a participant to not meet a requirement, require the participant to comply with the principal place of residence requirement, if it is satisfied that the reasons for non‑compliance no longer apply.

Delayed application of principal place of residence requirement: new homes

Section 31 provides an exemption from the principal place of residence requirement for persons who have Help to Buy arrangements relating to the construction of new homes.

A participant does not breach clause 1.3 in Schedule 1 of the participation requirements if the property is unoccupied to facilitate construction taking place; the participant does not own the property that is their principal place of residence during the construction period; and the participant begins to treat the property as their principal place of residence within three months of the construction being completed. This is to encourage participants to move into their new properties as soon as possible.

Borrowing additional funds under a mortgage from participating lenders

Section 32 relates to clause 1.5 of Schedule 1 which prohibits a participant from borrowing additional funds under their current mortgage from their participating lender or taking out a new and larger mortgage with a participating lender to discharge the mortgage with their current participating lender unless they notify Housing Australia. Section 32 requires Housing Australia to ensure that arrangements provide that participants may only borrow additional funds from a participating lender (that is, increase the size of their mortgage):

•                 to make a repayment to reduce the Commonwealth share; or

•                 to undertake maintenance or capital expenditure on the property (including home improvements); or

•                 in line with the participating lender’s hardship policies.

The intent of this requirement is to support participants repay the Commonwealth share, if their circumstances permit. Where participants have increased financial capacity and are seeking to increase their mortgage, they should prioritise repaying the Commonwealth share.

Note 1 to the provision clarifies that section 32 does not limit a participant’s ability to take out a new mortgage with a participating lender, or with their current participating lender, if refinancing does not result in a larger mortgage.

Note 2 to the provision reminds readers that clause 1.5 of Schedule 1 provides details on when participants are required to notify Housing Australia about borrowing further funds from participating lenders.

Division 3 – Monitoring participants’ compliance

Housing Australia must monitor participants’ compliance

Section 33 requires Housing Australia to monitor participants’ compliance with the participation requirements for the duration of the arrangement.

Housing Australia must conduct five-yearly reviews

Section 34 imposes an additional requirement for Housing Australia to conduct a review of each arrangement every five years. The timing of the five-year review is based on when the arrangement was entered into. As part of this review, in addition to determining whether a participant met the participation requirements, Housing Australia must determine whether a single participant’s taxable income exceeded the single income threshold (see section 8) for each of the two most recent income years preceding the review where an income tax assessment has been given to the participant by the Commissioner of Taxation. The joint income threshold applies to sole parents (see below).

•               To illustrate, a single participant (who is not a single parent) applies for and enters a Help to Buy arrangement in 2025-26. Housing Australia will conduct its first 5-yearly review of that participant in 2030-31. In this review:

–              the participant’s taxable income from 2029-30 (as reflected in their 2029-30 notice of assessment) would be assessed against the single income threshold for 2030-31; and

–              the participant’s taxable income from 2028-29 (as reflected in their 2028-29 notice of assessment) would be assessed against the single income threshold for 2029-30.

Similarly, for joint participants, Housing Australia must determine whether the combined taxable income of joint applicants or the taxable income of sole parents (which includes a single person who is a legal guardian) exceeded the joint income threshold (see section 8) for each of the two most recent income years preceding the review where an income tax assessment has been given to the participant/s by the Commissioner of Taxation. The requirement to consider the taxable income for the two most recent income tax assessments balances maintaining the integrity of the Scheme while acknowledging that a participant’s taxable income can vary year-to-year, depending on their personal circumstances. This affords greater fairness to program participants as they will not be considered in breach of the arrangement if they exceed the relevant income threshold in one of the financial years being considered.

Housing Australia must review arrangement where mortgage with a participating lender is discharged

Section 35 requires Housing Australia to review the arrangement when a participant (or participants) discharges their mortgage with their participating lender. Specifically, Housing Australia must determine, within a reasonable time, whether the participant (or participants) has met the participation requirements, and whether the participant (or participants) should be required to undergo the assessment and repayment processes (see section 37). The review requirement does not apply to Housing Australia if the participant (or participants) have repaid the Commonwealth share in full or discharged the mortgage by refinancing with another participating lender.

Division 4 – Managing participants’ compliance

How Housing Australia is to respond where review identifies potential non-compliance

Subsection 36(1) requires Housing Australia to take action in accordance with section 37 (about repayment and termination of arrangement) if, upon undertaking a review (under section 34), it is satisfied that a sole participant who is not a single parent, a participant who is a single parent, or joint participants’ taxable income in the two financial years preceding the review exceeded the relevant income thresholds outlined in section 8. There are different income thresholds depending on the circumstances of the participant (or participants).

Subsection 36(2) further provides that Housing Australia may take action in accordance with section 37 if it is satisfied that the participant has, at any time, not met a participation requirement, and it considers it appropriate to take action under the arrangement in accordance with section 37.

Subsection 36(3) clarifies that Housing Australia may make provision in an arrangement to impose other compliance measures, except to the extent that the other compliance measure or measures would be inconsistent with the Instrument.

Housing Australia may require repayment and terminate arrangement

Section 37 supports the integrity of Help to Buy by providing a process to manage the exit of participants from the Scheme, where they become ineligible and their financial capacity permits. This process provides two different pathways, depending on the size of the Commonwealth share.

Assessment of capacity to repay Commonwealth share

Participants must obtain an assessment of their capacity to repay the Commonwealth share, and provide this assessment to Housing Australia when:

•                 Housing Australia is satisfied that the participant has exceeded the income thresholds; or

•                 Housing Australia is satisfied that the participant has breached one or more of the participation requirements, and Housing Australia considers it appropriate for the participant to obtain an assessment; or

•                 Housing Australia requires the participant to have subsequent assessments under the circumstances specified at subsections (5), (6), (9) or (12) of section 37.

Participants can obtain this assessment from their current participating lender or another participating lender.

Under subsection 37(2), it is intended that the lender makes the following assessment:

•               Where the Commonwealth share is greater than 5 per cent of the value of the property, the lender assesses either that the participant –

–              has the capacity to repay a minimum amount of 5 per cent of the property value (as assessed at the time of the assessment); or

–              does not have the capacity to repay a minimum amount of 5 per cent of the property value (as assessed at the time of the assessment).

•               Where the Commonwealth share is equal to or less than 5 per cent of the value of the property, the lender assesses either that the participant –

–              has the capacity to repay the Commonwealth share of the property value (as assessed at the time of the assessment) in full; or

–              does not have the capacity to repay the Commonwealth share of the property value (as assessed at the time of the assessment) in full.

Paragraph 37(2)(c) requires that Housing Australia must notify the participant in writing when any assessment of their capacity to repay all or part of the Commonwealth share should occur.

Period for further assessment

Under subsection 37(3), Housing Australia has flexibility in determining when participants must obtain assessments of their capacity to make a repayment which Housing Australia is required to notify a participant under paragraph 37(2)(c). In determining the dates at which assessments are undertaken, Housing Australia must consider:

•               the participant’s personal circumstances and financial capacity; and

–              The instrument does not define what can constitute a participant’s personal circumstances. It is expected that Housing Australia would consider matters directly affecting the participant, including close family members of the participant, health matters, such as serious personal illness or injury, or changes in financial circumstances.

•               the reason or reasons the participant was required to obtain an assessment and any required
re-assessments;

–              For example, Housing Australia must consider the extent to which the participant’s taxable income exceeded the income threshold. If the participant’s taxable income exceeded that threshold by a significant amount, it is expected that Housing Australia would require the participant to obtain another assessment sooner compared to a participant who exceeds the threshold by a small amount.  

Housing Australia cannot require a participant to obtain a new assessment within one year of the last assessment if the assessment is required due to subsections 37(5), (6), (9) or (12).

Housing Australia to require repayment of Commonwealth share

Under subsection 37(4), every arrangement that Housing Australia enters into must allow it to require a participant to repay the Commonwealth share in full or in part in any of the circumstances outlined in section 37

Commonwealth share greater than 5% of value of the property

Under subsection 37(5), where the Commonwealth share is greater than 5 per cent of the value of the property and the lender assesses the participant to have the capacity to repay a minimum amount of 5 per cent of the property value (as determined at the time of the assessment), and Housing Australia is satisfied that the assessment has been properly made:

•               Housing Australia must require the participant to repay a minimum amount of 5 per cent of the property value (as assessed at the time of the assessment and rounded to the nearest $1,000) within 90 days of the date the lender’s assessment was completed.

–              The participant could repay an amount of more than ‘5 per cent of the property value’ if the participant chooses voluntarily to do this (the participant only needs to pay a minimum of ‘5 per cent of the property value’).

–              Participants will not be required by Housing Australia to make the repayment if doing so would mean that they need to pay LMI, but are permitted to do so if they wish (as outlined in subsection 37(7).

•               Once a participant makes a repayment, Housing Australia is to recalculate the Commonwealth share of the relevant property. Where the Commonwealth share is greater than 0 per cent, Housing Australia must direct a participant to obtain another assessment from a participating lender in a particular timeframe (set at Housing Australia’s discretion – see the further information above in the commentary on subsection 37(3)). Where the Commonwealth share is 0 per cent, Housing Australia must terminate the Help to Buy arrangement.

Under subsection 37(6), where the Commonwealth share is greater than 5 per cent of the value of the property and the lender assesses that the participant not to have the capacity to repay a minimum amount of 5 per cent of the property value (as assessed at the time of the assessment), and Housing Australia is satisfied that assessment has been properly made, Housing Australia must require the participant to obtain another assessment from a participating lender in a particular timeframe (set at Housing Australia’s discretion – further information above in subsection 37(3)). For clarity, in this scenario, the participant does not need to make a repayment prior to the later assessment.

Commonwealth share equal to or less than 5% of value of property

Under subsection 37(8), where the Commonwealth share is equal to or less than 5 per cent of the value of the property, the lender assesses the participant to have the capacity to repay the Commonwealth share of the property value (as assessed at the time of the assessment) in full, and Housing Australia is satisfied that assessment has been properly made:

•               Housing Australia must require the participant to repay the Commonwealth share (as assessed at the time of the assessment) in full within 90 days of the date the lender’s assessment was completed; and

–              To avoid doubt, participants will not be required by Housing Australia to make the repayment, if doing so would mean that they need to pay LMI, but are permitted to do so if they wish (as outlined in subsection 37(10)).

•               Once a participant repays the Commonwealth share in full, Housing Australia must terminate the Help to Buy arrangement.

Under subsection 37(9), where the Commonwealth share is equal to or less than 5 per cent of the value of the property and the lender assesses the participant not to have the capacity to repay the Commonwealth share of the property value (as assessed at the time of the assessment) in full, and Housing Australia is satisfied that assessment has been properly made:

•                 Housing Australia must require the participant to obtain another assessment from a participating lender in a particular timeframe (set at Housing Australia’s discretion – further information above at subsection 37(3)). For clarity, in this scenario, the participant does not need to make a repayment.

Housing Australia may not require repayment

Under subsections 37(11) and (12), Housing Australia may, at a particular time, not enforce requiring a participant to make a repayment if it is satisfied it is reasonable given the circumstances, which Housing Australia can determine while considering the following matters:

•               the participant’s personal circumstances and financial capacity; and

–              As discussed above, the instrument does not define what can constitute a participant’s personal circumstances. However, an example of personal circumstances where Housing Australia would be expected to reach a decision to not enforce a requirement to repay an amount would be where the participant has been subject to domestic violence that has impacted their ability to make a repayment required by Housing Australia.

•               the reason or reasons the participant was required to obtain an assessment.

–              For example, Housing Australia must consider the extent to which the participant’s taxable income exceeded the income threshold. If the participant’s taxable income exceeded that threshold, it is expected that Housing Australia is more likely to waive the requirement if a participant’s taxable income had exceeded the income threshold by a small amount on a temporary basis, compared to if the participant’s taxable income had exceeded the threshold by a significant amount.

Under subsection 37(12), where Housing Australia does not enforce a requirement for a participant to repay, it must require the participant to obtain a further assessment from a participating lender of their capacity to repay the Commonwealth share, as mentioned in subsection 37(1). Information about the timing of the new assessment is provided in subsection 37(3), which includes that the new assessment cannot be within one year of the last assessment.

Division 5 – Varying arrangements

The purpose of Division 5 is to allow Housing Australia to vary certain aspects of a Help to Buy arrangement with a participant or joint participants.

Varying the participants in an arrangement

Section 38 allows Housing Australia to add or remove participants to any arrangement. However, an arrangement cannot have more than two participants or have all of the original participants removed. This provides flexibility to enable an arrangement to continue despite participants changing personal circumstances (for example, a single participant marries or enters into a de-facto relationship, and the new partner seeks to join the arrangement).

Under subsection 38(1), Housing Australia cannot vary an arrangement to have more than two participants or no original participants.

Under subsection 38(2), Housing Australia must be satisfied that any additional participant satisfies the applicant eligibility criteria (per section 17) to ensure the integrity of the Scheme. However, there are a few qualifications to this eligibility criteria, as follows:

•               the additional participant does not have to provide a deposit of at least 2 per cent of the purchase price of the property (where the variation occurs after the parties enter into the sale contract, but on before the settlement date); and

•               the additional participant does not have to provide a deposit of at least 2 per cent of the purchase price of the property and does not have to cover all additional costs associated with the purchase, including conveyancing costs, legal costs and stamp duty (where the variation occurs after the settlement date).

Additionally, Housing Australia must be satisfied that any transactions with the vendor or builder that involve the new participant would be undertaken at arm’s-length.

Under subsection 38(3), where an arrangement is varied to remove a participant, thus leaving a single participant, Housing Australia must be satisfied that a participating lender has determined that the single participant is able to meet their obligations under the mortgage with the lender. Housing Australia may also vary an arrangement to remove a participant if it is necessary to do so to comply with a court order.

Subsection 38(4) provides that these eligibility assessments do not apply if an arrangement needs to be altered due to the death of a participant. This circumstance is covered by section 45 of the Instrument.

Varying or entering into new construction contracts

Under section 39, if a program participant varies a construction contract, or enters into a replacement construction contract, Housing Australia cannot contribute more than 40 per cent of the purchase price under the varied or replacement contract. This applies where a participant has varied or entered into a replacement contract in circumstances allowed under clause 1.14 of Schedule 1 (which allows a participant to enter into a replacement or varied contract if the new purchase price does not exceed the price cap at the time the arrangement was entered into, amongst other requirements) and the purchase price under the varied or replacement contract is higher than the original purchase price.

•               For example, if Housing Australia agreed to support a participant in the Australian Capital Territory by providing 40 per cent of the purchase price of $500,000, which is $200,000, but the construction contract is subsequently varied and the purchase price is now $600,000, Housing Australia is permitted to contribute an additional amount of up to $40,000. The revised purchase price remains under the property price cap for the Australian Capital Territory ($1,000,000 at Scheme commencement). In this case, Housing Australia’s total contribution would be $240,000, which is 40 per cent of the revised $600,000 purchase price.

•               A participant may be required to pay lenders’ mortgage insurance, should the change in valuation result in the Commonwealth’s contribution plus the participant’s deposit being less than 20 per cent of the property’s value.

Division 6 – Terminating arrangements in specified circumstances

Section 40 requires Housing Australia to ensure that the arrangements with participants allow it to terminate arrangements in particular circumstances.

Subsection 40(3) provides that the circumstances in subsections 40(1) and (2) are not exhaustive and Housing Australia can include other terms and conditions in a Help to Buy arrangement to terminate the arrangement. For the avoidance of doubt, section 40 does not require Housing Australia to terminate an arrangement where one of the circumstances listed in section 40 occurs, only that Housing Australia must ensure that the arrangements with participants can be terminated if one of the listed circumstances occur.

The specific termination grounds that Housing Australia must ensure are in Help to Buy arrangements are:

•               Before the settlement date, Housing Australia must ensure that a Help to Buy arrangement can be terminated if:

–              A participant is not an eligible applicant (under section 17 of the Instrument) as a result of a change of circumstances (paragraph 40(1)(a)). For example, Housing Australia identifies that a participant holds a disqualifying property interest before the settlement date. In such a case, Housing Australia must ensure that the contractual arrangements allow it to terminate the Help to Buy arrangement prior to this date.

–              Housing Australia is no longer satisfied that the mortgage requirements (under section 22 of the Instrument) or new home contract requirements (under section 23 of the Instrument) will be met by the settlement date (paragraph 40(1)(b)). For example, the contract for a construction of a new home has not been entered into on an arm’s-length basis. In such a case, Housing Australia must ensure that the contractual arrangements allow it to terminate the Help to Buy arrangement prior to the settlement date.

•               At any time, Housing Australia must ensure that a Help to Buy arrangement can be terminated if: 

–              Housing Australia is no longer satisfied that the timeframe requirements (see section 24 of the Instrument) will be met, or if those timeframe requirements have not been met. For example, Housing Australia has an arrangement with a participant who has purchased a house and land package. The participant became the registered proprietor of the land on 1 July 2026 (transfer date). However, more than 12 months have lapsed since the transfer date and construction of the dwelling has not yet commenced. In such a case, Housing Australia must be able to terminate the Help to Buy arrangement. It is important to note that subsection 24(2) provides Housing Australia with the power to extend the timeframe requirements, where it is satisfied it is necessary or appropriate to do so.

•                 Paragraph 40(2)(c) further requires Housing Australia to ensure that a Help to Buy arrangement can be terminated at any time if Division 2 of Part 5 would require the Help to Buy arrangement to be terminated. Subsection 52(2) in Division 2 of Part 5 sets out the actions required when a State ceases to be a participating State. Paragraph 52(2)(b) provides that Housing Australia must terminate a Help to Buy arrangement where Housing Australia entered the arrangement in relation to a property located in the State, but settlement has not been completed at the withdrawal date (that is, the date on which the State ceased to be a participating State).

PART 4 – EXITING THE HELP TO BUY PROGRAM

Division 1 – Introduction

The simplified outline of this Part, in section 41, provides a summary of the Part and describes its purpose. The Part covers the manner in which participants exit the Scheme. However, readers should rely on substantive provisions as the outline is not intended to be comprehensive. The Part covers the additional ways in which the Scheme can be exited early, including voluntary early repayments or sale of the relevant property. The Part also covers how Housing Australia can manage Help to Buy arrangements in relation to the deceased estates of participants.

Section 42 provides that the provisions in Part 4 only apply to the performance of Housing Australia’s functions under the Act in respect of:

•                 participating States and the Territories (section 10 of the Act); and

•                 cooperating States (section 15 of the Act).

Division 2 – Exiting the program

Housing Australia must allow voluntary early repayments

Subsection 43(1) provides that Housing Australia is responsible for ensuring that every Help to Buy arrangement permits a participant to make one or more voluntary early repayments, where each repayment amount would:

•                 (rounded to the nearest $1,000) decrease the Commonwealth share percentage by at least 5 per cent of the value of the relevant property as at the time of the repayment (for example from 30 per cent to 25 per cent of the value of the property); or

•                 fully repay the Commonwealth share (as valued at the time of repayment).

Section 5 of the Instrument defines repayment as a payment made by a participant in a Help to Buy arrangement to lower the Commonwealth share in respect of the relevant property.

Section 25 of the Instrument defines Commonwealth share, and section 58 provides how Housing Australia ascertains the value of a relevant property. In accordance with sections 25 and 58, Housing Australia must value the relevant property where the participant wants to make a voluntary repayment.

Accordingly, subsection 43(2) provides that Housing Australia must ensure that every Help to Buy arrangement contains terms and conditions that permit Housing Australia to require the participant to pay the cost of obtaining any valuation, and any other administrative costs associated with the repayment.

Housing Australia must allow the relevant property to be sold

Section 44 provides that Housing Australia must ensure that every Help to Buy arrangement allows the participant to sell the property, at any time, subject to both the conditions specified in the arrangement as well as the following conditions:

•                 the participant must provide Housing Australia written notice of the sale immediately after the parties enter into the sales contract;

•                 Housing Australia is satisfied that the contract of sale has been entered into on an arm’s length basis; and

•                 the participant must bear the costs of obtaining any valuation, and any other administrative costs associated with the sale.

Arm’s length basis should be construed in terms of its ordinary meaning, being a transaction involving unaffiliated parties that are acting independently and in their own interests.

Options for deceased estates of participants

Section 45 sets out how Housing Australia is to manage Help to Buy arrangements where participants in a Help to Buy arrangement have died. It also requires Housing Australia to ensure the arrangement provides for Housing Australia’s ability to recover the Commonwealth share in these circumstances in accordance with section 45.

Subsection 45(1) deals with arrangements where there:

•                 is a sole participant and they die; or

•                 are two participants, they are joint tenants, and they both die.

Subsection 45(3) deals with arrangements where there are two participants, they are tenants in common, and one of them dies, and an individual other than the surviving participant inherits the deceased participant’s interest in the property.

Subsection 45(5) provides that, under the scenarios outlined in subsections 45(1) and 45(3), Housing Australia must recover the Commonwealth share under a provision of an arrangement required under section 45 (as valued at the time it is recovered) within:

•                 two years of the date of the last participant’s death (or the sole participant’s death); or

•                 a longer period that Housing Australia considers reasonable for dealing with and assisting participants experiencing hardship.

–               ‘Hardship’ is defined to include financial hardship. As discussed above (in relation to definitions), the term should otherwise take on its ordinary meaning. 

The recovery of the Commonwealth share within a reasonable period of a participant’s death ensures that the benefit of the Commonwealth’s equity interest in the dwelling does not continue to be available for an extended time for subsequent owners of the property. The initial limit of two years aligns with the capital gains tax exemption that beneficiaries receive upon inheriting a principal place of residence.

For the avoidance of doubt, subsection 13(2) obliges Housing Australia to ensure that terms and conditions are contained in Help to Buy arrangements that allow it to comply with the requirements of the Instrument. This includes ensuring that the terms and conditions permit it to comply with the requirements in subsection 45(1), which states that Housing Australia must ensure each arrangement provides for Housing Australia to recover the Commonwealth share when a participant or joint participants die in accordance with section 45.

Subsections 45(2) and (4) provide for exceptions to the requirement for Housing Australia to recover the Commonwealth share upon the death of participants, which also must be covered in the Help to Buy arrangements. This is where:

•                 the beneficiary otherwise referred to as a successor (a beneficiary of the estate of one or both of the deceased participants) or the beneficiaries (two beneficiaries jointly) inherit the property;

•                 each beneficiary applies to be accepted as a participant in the Help to Buy arrangement where the application is in the manner and form required by Housing Australia;

•                 the following requirements (see section 17 of this Instrument regarding eligible applicants) are met by each beneficiary at the time of the application –

–               the beneficiaries are an Australian citizen aged 18 years or over;

–               the beneficiaries satisfy the income test set out in section 19 where there:

:                 is one beneficiary, their taxable income for the income year of their last income tax assessment preceding the lodgement of their application is less than or equal to the single income threshold;

:                 is one beneficiary and they are a single parent, their taxable income for the income year of their last income tax assessment preceding the lodgement of their application is less than or equal to the joint income threshold;

:                 are two beneficiaries, their combined taxable income for the income year of their last income tax assessment preceding the lodgement of their application is less than or equal to the joint income threshold;

–               the beneficiaries satisfy the financial capacity test set out in section 20:

:                 Housing Australia considers that based on the beneficiary’s (or beneficiaries’) financial capacity, which includes the value of their assets, their liabilities and their income at the time, it is unlikely that they could acquire the relevant property without assistance of the Help to Buy Scheme and they will live in the relevant property as their principal place of residence;

–               the beneficiaries are not receiving assistance from a home-buyer guarantee that is funded or provided by a Commonwealth entity or company, a shared equity scheme, or State or Territory loan or guarantee to support home ownership (this excludes home buyer assistance such as first home owner grants or tax concessions, or the First Home Super Saver scheme); and

–               the beneficiaries do not hold a disqualifying property interest (see section 18 for exceptions); and

•                 Housing Australia agrees to substitute each beneficiary as a party to, and participant in the Help to Buy arrangement in relation to the inherited property.

In this case the Commonwealth share is not recovered and the beneficiary or beneficiaries become participants in the Help to Buy arrangement instead of the deceased prior participants. There is still a limit of two participants in the Scheme with respect to one property. This is because administering the Scheme with multiple beneficiaries inheriting one part of the Help to Buy place could become unwieldy and complex. 

Where a participant (who owns the property with another participant as tenants in common) has died and the surviving participant inherits the deceased participant’s interest in the property, the surviving participant becomes the sole participant in the arrangement.

Subsection 45(6) provides that the beneficiary must pay any other administrative costs associated with a substitution as participants in lieu of the deceased person or persons.

PART 5 – MISCELLANEOUS

Division 1 – Introduction

The simplified outline of Part 5, in section 46, provides a summary of the Part and describes its purpose. Part 5 sets out the allocation of Help to Buy places across the participating jurisdictions. The Part also covers miscellaneous matters relevant to the administration of the Scheme, including Housing Australia’s ability to charge fees under Help to Buy arrangements. However, readers should rely on substantive provisions as the outline is not intended to be comprehensive.

The provisions in Part 5 are relevant to the performance of Housing Australia’s functions under the Act in respect to participating States and the Territories (see section 10 of the Act). Some of these provisions are also relevant to the performance of Housing Australia’s functions under the Act in respect to cooperating States (see section 15 of the Act).

Division 2 – Allocating Help to Buy places

Division 2 provides directions for the allocation of places in the Help to Buy Scheme.

Section 47 of the Instrument provides that Division 2 applies to the performance of Housing Australia’s functions in relation to the Territories and participating States. This is consistent with Housing Australia being unable to allocate places in the Help to Buy Scheme in states that are cooperating States or withdrawn States.

Allocation, commitment and use of places in the first year of the Scheme

Subsection 48(1) establishes that 10,000 places are to be made available in the period starting on 1 July 2025 and ending on 30 June 2026 (referred to as the initial period). Subsection 48(2) provides that places are to be allocated between participating States and the Territories according to the following framework:

•                 each participating State and all Territories are allocated a number of places on 1 July 2025; and

•                 each State that is not a participating State on 1 July 2025 but becomes a participating State before 1 March 2026 is allocated a number of places on the day it becomes a participating State.

The note to subsection 48(2) clarifies that the section operates subject to section 52, which prevents places from being allocated in certain circumstances once a participating State has given notice of its intention to stop participating.

Subsection 48(3) has the formula for determining the number of places allocated to a participating State or a Territory in the initial period of the Scheme. The formula is:

If the result of the formula is not a whole number, the number is rounded down to the nearest whole number. For example, where the population of a participating State or a Territory is 2.5 million and the total population of Australia is 25 million, the participating State or territory would receive

1000 places in the initial period of the Help to Buy Scheme.

Section 49 deals with committing and using places in the Help to Buy Scheme in the 2025-26 financial year. Subsection 49(1) provides that once a place (which is defined in section 5 to be the opportunity to enter into an arrangement) has been allocated to a particular State or Territory, Housing Australia may, on or after the allocation date, commit or use (which note 1 clarifies refers to Housing Australia approving an application to enter into an arrangement) the place for an arrangement in respect of property in that State at any time before 1 March 2026. This enables Housing Australia to complete its allocation per the formula in subsection 48(3) for places for participating States and all the Territories.

However, in the event that a place remains unallocated or uncommitted on 1 March 2026, subsection 49(2) allows Housing Australia to commit or use the place for any arrangement in respect of property in any participating State or Territory before the end of the 2025‑26 financial year. This maximises the opportunity to utilise all 10,000 places in the first year of the Scheme.

Despite this, subsection 49(3) provides that if not all places are committed before the end of 30 June 2026, those places are to be treated as unused places for the next financial year for the purposes of subparagraph 50(1)(b)(i).

Subsection 49(4) provides for the circumstance where a place is committed but the arrangement between the program participant and Housing Australia is not entered into before the end of 30 June 2026. In this scenario, paragraph 49(4)(a) allows Housing Australia to only use the place and enter into an arrangement in respect of the place before the end of 30 June 2027. Paragraph 49(4)(b) provides for the situation where the relevant place is not used before the end of 30 June 2027. In that case, the place is treated as an unused place for the purposes of subparagraph 50(1)(b)(i). Again, this maximises the opportunity to utilise all 10,000 places.    

Allocation, commitment and use of places in subsequent years of the Scheme

Section 50 provides for the allocation of places in subsequent years of the Scheme – i.e. after the 2025-26 financial year. Subsection 50(1) provides that 10,000 places are to be made available in each financial year after the 2025-26 financial year. Additionally, if there are unused places from previous financial years of the Scheme, all of those unused places are rolled over and added to the 10,000. Consequently, there will be at least 10,000 places available in each financial year after the first year of the Scheme.

Subsection 50(2) establishes the allocation of places between participating States and the Territories for a financial year. If a state is a participating State before the start of the relevant financial year, the State is allocated a number of places on 1 July of that year. Each Territory is allocated a number of places on 1 July of each financial year starting with 1 July 2026. Subsection 50(3) contains the formula that provides for the annual number of places for participating States and the Territories. The formula is:

As in subsection 48(3), if the result is not a whole number, the result is rounded down to the nearest whole number. For example, where 100 places have been rolled over from a previous year, the population of a participating State or Territory is 2 million and the total population of Australia is 25 million, but the total population of all States participating in the Scheme and the Territories is only 10 million, the participating State or Territory will receive 2020 places in subsequent years of the Help to Buy Scheme.

Subsection 50(4) provides that the maximum number of places that can be allocated under the Help to Buy Scheme is 40,000 places. To avoid doubt, the subsection provides that the annual number of places for a financial year is to be reduced so that the total number of used places, for all financial years, does not exceed 40,000 places. Where this subsection applies, Housing Australia must pro rata the allocation for each participating State and each Territory for the financial year.

•                 To illustrate, if 39,000 places were used in the first four financial years, and 1,000 places were rolled over into the fifth financial year, only 1,000 places could be allocated in the fifth financial year, and they would be allocated on a pro rata basis to each participating State and Territory.

Section 51 provides for committing and using places in the subsequent years of the Scheme. As in subsection 49(1), subsection 51(1) provides that once a place has been allocated to a particular State or Territory under subsection 50(2), Housing Australia may, on or after the allocation date, commit or use the place for an arrangement in respect of property in that State or Territory at any time before 1 March of the relevant financial year.

Subsection 51(2) deals with circumstances where a place is unallocated as of 1 March of the relevant financial year due to the calculations in subsection 50(3) producing results that are not whole numbers and are therefore rounded down. In such circumstances, Housing Australia may commit or use that place in any participating State or a Territory before the end of the financial year. The Note clarifies why places may be unallocated.

Subsection 51(3) deals with the circumstance where a place remains uncommitted as of 1 March of the relevant financial year. As in subsection 49(2), Housing Australia may commit or use that place in any participating State or a Territory before the end of the financial year.

Subsection 51(4) mirrors subsection 49(3) in that it provides that if any place remains uncommitted on 30 June of the relevant financial year, that place is to be treated as an unused place – that is, rolled over to the following financial year.

Subsection 51(5) states that where a place is committed, an arrangement need not be entered into before the end of the relevant financial year. Paragraph 51(5)(a) provides that Housing Australia may use the place, and enter into an arrangement in respect of the place at any time before the end of 30 June of the next financial year.

However, paragraph 51(5)(b) provides that, at the end of the next financial year, the place may no longer be used, and an arrangement may no longer be entered in respect of the place, and the place is to be treated as an unused place for the next financial year. Note 1 clarifies that this enables the unused place to be rolled over. Note 2 reminds readers that Housing Australia’s ability to enter into arrangements is subject to paragraph 14(1)(c), which provides that Housing Australia may only enter into an arrangement where Division 2 of Part 5 allows.

Where a State intends to cease being a participating State

Section 52 of the Instrument covers the situation where a participating State gives notice that it intends to stop being a participating State. In these circumstances, no further places can be allocated to the relevant State after the date Housing Australia becomes aware that notice has been given. However, paragraph 52(1)(b) enables Housing Australia to still use a place for an arrangement, or enter into arrangement, in the relevant State if the following circumstances apply:

•                 Housing Australia had committed the place before the date of Housing Australia becoming aware that notice was given; and

•                 the relevant State has not ceased to be a participating State as of the date the place is used or the arrangement is entered into.

The note to section 52 refers the reader to subsection 35(4) of the Act, which provides for the circumstances in which a State stops being a participating State, and reiterates that the Act prevents Housing Australia from entering into an arrangement in a State that is no longer a participating State.

Subsection 52(2) provides that Housing Australia cannot use a place in a State that was a participating State from the date upon which that relevant State ceased being a participating State. The term ‘withdrawal day’ in paragraph 52(2)(a) refers to this circumstance or alternatively the day the participating State becomes a cooperating State. This prohibition applies even if Housing Australia had committed the place before the withdrawal day. Where Housing Australia has entered into an arrangement in the relevant State but settlement has not been completed as of the withdrawal day, Housing Australia must terminate the arrangement.

If Housing Australia is required to terminate an arrangement, thus not using the place, subsection 52(3) allows Housing Australia to commit or use that place in any other participating State or a Territory at any time between 1 March in the financial year in which the relevant State provided notice of its intent to cease being a participating State and the end of that financial year. Subsections 52(4) and (5) provides that subsections 51(4) and (5), which relate to rolling over unused places in subsequent years, apply, and that section 52 applies despite anything in sections 48 or 50. This means that opportunities to access the Help to Buy Scheme are maintained.

Managing places where purchase does not settle

Subsections 53(1) and (2) provide for Housing Australia’s obligations where a place has been committed but the settlement does not occur because the participating lender has withdrawn their mortgage approval prior to settlement of the purchase of the relevant property, or fails for any other reason. In addition, Housing Australia must also be satisfied that the participating lender, or another participating lender will not enter into a mortgage over the relevant property within a reasonable time. In such circumstances, these obligations are that:

•                 Housing Australia must not approve an application to enter into an arrangement in respect of that place;

•                 if Housing Australia has provided approval but an arrangement has not been entered, Housing Australia must revoke the approval;

•                 Housing Australia must not enter into an arrangement in respect of the place (whether or not an approval has already been granted); and

•                 if an arrangement has already been entered into, Housing Australia must terminate the arrangement.

Subsection 53(3) allows Housing Australia to commit or use the place for an arrangement in a participating State or a Territory at any time between 1 March in the financial year in which the withdrawal or failure occurred and the end of that financial year. This means that opportunities to access the Help to Buy Scheme are maintained.    

Division 3 – Administrating the Help to Buy program

Subdivision 1 – Application of this Division

Section 54 provides that the provisions in Division 3 to Part 5 only apply to the performance of Housing Australia’s functions under the Act in respect to:

•                 participating States and the Territories (section 10 of the Act); and

•                 cooperating States (section 15 of the Act).

Subdivision 2 – Financial matters

Indexation

Sections 55 and 56 includes how the threshold for home improvements, and when the participants need to notify Housing Australia of property damage, apply under Help to Buy. For the first financial year of Help to Buy, the threshold is $20,000, which will be indexed annually to the Consumer Price Index. This ensures that the real value of the threshold does not decline over time.

Fees

Under the rules for the Home Guarantee Scheme in section 29J of the Housing Australia Investment Mandate Direction 2018, Housing Australia is not entitled to charge a fee for issuing a guarantee. To align the Help to Buy Scheme with the Home Guarantee Scheme, section 57 of the Instrument provides that Housing Australia is also not entitled to charge a fee for an equity contribution, including for an application for a Help to Buy arrangement, other than a valuation fee or other costs related to obtaining the valuation. This ensures that the equity contributions and financier loans are provided to eligible participants at the lowest possible cost to maximise the benefits to homebuyers from Help to Buy.

However, Housing Australia may pass on the compliance costs or costs associated with enforcing an arrangement to an applicant or participant. It is intended that participants will be responsible for paying the mortgage registration fees for both the participating lender and Housing Australia. Therefore, while Housing Australia is not prevented from seeking a payment under an arrangement, agreement or contract, it cannot charge participants interest or rent on the Commonwealth share.

Valuation

The purpose of section 58 is to ensure that where valuations are required to support Housing Australia’s administration of the Scheme, they are conducted by appropriately qualified and authorised independent experts who operate at arm’s length to applicants and participants.

However, paragraphs 58(2)(b) and (c) allow Housing Australia to exercise some discretion in relation to the valuation determination. A situation where it may be appropriate for Housing Australia to exercise this discretion would be where it has obtained two recent valuations that value a property at slightly different amounts. In this situation, it is intended to be open to Housing Australia to select a value at the median point between the two valuations. Housing Australia could also have regard to the types of valuations undertaken.

This approach avoids the Instrument specifying specific classes of valuers and the regulatory framework in each jurisdiction or being dependent on professional body standards which might vary from time to time while leveraging appropriate professional expertise. 

Timing of Housing Australia’s financial contributions to purchase price

Section 59 deals with when Housing Australia must pay the Commonwealth’s contribution to support participants to purchase or build homes. For new homes, Housing Australia must pay the Commonwealth’s contribution at the time of settlement of the purchase of the land, and at times Housing Australia considers appropriate to assist with the funding of construction progress payments but at no later time than when the progress payment is required under the construction contract. For these homes, the contribution will be determined based on the percentage Housing Australia has agreed to provide under an arrangement.

•                 For example, if Housing Australia agrees to provide 40 per cent of the purchase price under an arrangement relating to a house and land package, it would pay 40 per cent of the purchase price of the land at the settlement date, followed by 40 per cent progressively of the value of the construction contract (subject to the property price cap) to assist with the funding of progress payments in the course of the construction.

Housing Australia must ensure that participants are supported during the construction process by Commonwealth contributions while ensuring that the Commonwealth’s financial interests are preserved. This support should ensure that construction is not delayed due to the timing of Commonwealth contributions. For all other homes, including existing homes and off-the-plan dwellings, Housing Australia must pay its contribution upon settlement.

Home improvements

Under section 60, participants can make any home improvements (i.e. renovations) at their own expense to the property purchased with the assistance of Help to Buy. This is to ensure that, like other home owners, Scheme participants are free to improve their property as they see fit. As these home improvements are at the participant’s expense, it is intended that they will receive the sole benefit of any increase in property value because of the improvement.

The circumstances in subsection 60(2) must be met for Housing Australia to reduce the Commonwealth share percentage and make any necessary amendments to the arrangement, or contracts, or agreements relating to the arrangement. These circumstances are that the participant notifies Housing Australia of the improvements; the improvements cost more than the threshold ($20,000 on Scheme commencement, to be indexed annually in accordance with sections 55 and 56); the participant obtained any necessary approvals; and the property is valued before and after the home improvements take place disregarding the impacts of other factors like market movements, repairs or maintenance.

•                 For example:

A participant wants to renovate their home, in which the Commonwealth share percentage is 30 per cent. The participant notifies Housing Australia and obtains a pre‑valuation of the property before they commence renovations. Under this valuation the participant’s property is worth $500,000, meaning the Commonwealths share is worth $150,000.

After obtaining any necessary approvals, the participant spends $25,000 on renovations (above the threshold in paragraph 60(3)(d)), and soon after the renovations obtains a further valuation of the property. This valuation finds that the participant’s property is now worth $540,000.

The participant provides their pre- and post-valuations to Housing Australia, which reduces the Commonwealth share in the property from 30 per cent to 27.8 per cent (i.e. $150,000 divided by $540,000). This maintains the value of the Commonwealth share at $150,000 and ensures that the Commonwealth is not entitled to any part of the $40,000 increase in the value of the property arising from the improvements funded by the participant.

Notification by the participant is a necessary part of the home improvement process as it informs Housing Australia that a valuation must be conducted and ensures that any increase in property value is promptly addressed by reducing Housing Australia’s equity share and increasing the participant’s equity share. The cost of the valuation is borne by the participant.

To avoid doubt, the note to subsection 60(2) provides that if the cost of the home improvements is less than $20,000, the Commonwealth will share in any resultant increase in property value.

Sometimes home improvements are conducted in stages, and so subsection 60(3) clarifies that a continuous series of separate improvements carried out over a period of up to 12 months is to be treated as one set of improvements.

•                 For example, if a participant purchases a property in the first year of the Scheme and made two separate improvements, costing each $15,000, one after the other, within a 12 month period, then this would be treated as one set of improvements and therefore reach the $20,000 threshold.

Subdivision 3 – Governance

Housing Australia must have an internal complaints review mechanism

Section 61 requires Housing Australia to set up and maintain an internal complaints review mechanism. The mechanism should allow applicants and participants to make complaints about actions taken or decisions made by Housing Australia under the Instrument or a Help to Buy arrangement. Among other things, reviewable actions or decisions could include Housing Australia withdrawing an exemption granted to a participant from the principal place of residence requirement, and Housing Australia terminating a Help to Buy arrangement. The mechanism should further allow Housing Australia to consider and respond to each complaint.

Ensuring that actions and decisions are reviewed internally by Housing Australia allows reviews to be cost‑effective, quick and accessible for applicants and participants. The mechanism should assist with safeguarding the integrity of the Scheme.

Housing Australia must establish arrangements for approving participating lenders

Subsection 62(1) provides that Housing Australia may approve, in writing, a lender to provide mortgages in relation to Help to Buy arrangements. Only a participating lender can provide a mortgage to a participant to assist the participant to purchase a property under Help to Buy.

Under subsection 62(2), Housing Australia may also revoke an approval, by providing a written notification to the lender. 

The Government expects that the approval of lenders as participating lenders will involve commercial negotiations between Housing Australia and lenders to ensure that the objectives of Help to Buy and the Government’s expectations for the operation of the Scheme are achieved.

Under subsection 62(3), in approving participating lenders and in revoking approvals of lenders as participating lenders, Housing Australia can determine the criteria and processes it adopts to approve participating lenders and revoke approvals. However, this ability to establish the criteria and processes is subject to paragraphs 62(3)(a) to 62(3)(h), which requires Housing Australia to take into account all of the following criteria to ensure that Help to Buy operates in accordance with the Government’s expectations:

•                 the lender’s standard of customer care, including their treatment of borrowers in financial hardship;

•                 the competitiveness of mortgage products offered by the lender for the purposes of the Help to Buy Scheme, including interest rates and other fees;

•                 the quality of the lender’s loan origination processes (including the quality of distribution origination channels for loans (e.g. mortgage brokers)) and the associated level of financial risk to the Commonwealth;

•                 the reputation of the lender—informed by, for example, the lender’s appropriate treatment of customers, and any offences, breaches, and conduct matters that may materially adversely impact on the lender’s standing in the community;

•                 the extent to which the decision to approve the lender as a participating lender will promote competition in lending markets and related markets—including, for example, by reference to the pricing of the products offered by the lender in the markets in which it operates;

•                 the extent to which all the lenders approved as participating lenders when considered together can undertake credit activities (including through other entities providing credit services) across Australia;

•                 whether the lender holds all the licences and approvals required to provide mortgages in relation with the Help to Buy arrangements; and

•                 the lender’s capacity to work with Housing Australia over the life of Help to Buy arrangements and the Help to Buy Scheme—as Help to Buy arrangements and the Help to Buy Scheme may be operational for a long period of time.

–               Housing Australia must assess the lender’s ability to work alongside Housing Australia in providing mortgages to participants and overseeing participants in the Scheme (including determining whether a participant has capacity to repay the Commonwealth share).

Housing Australia may rely on information

Under section 63, Housing Australia can rely on information provided to it directly or indirectly by a participant, participating lender, or any other person or third party (for example, a mortgage broker) in administering Help to Buy. This reliance is limited to information that Housing Australia reasonably believes to be accurate.

It is intended that Housing Australia having a reasonable belief in the accuracy of the information does not require it to undertake independent checks of the information provided to it so long as it is reasonable in the circumstances to consider that the information is accurate. What is reasonable will depend on the facts and circumstances. An example of where it would be appropriate for Housing Australia to have a reasonable belief in the accuracy of information is where it relies on a bank valuation of a property that an applicant is purchasing and that valuation confirms that the property is being purchased at market value and the purchase has not occurred at an excessive price that might otherwise suggest a non-arm’s length arrangement.

It is considered that this is appropriate as requiring Housing Australia to independently verify information it received in these circumstances would add significantly to the administrative cost of the program and delay decisions.

How Housing Australia must manage arrangements where participant is experiencing hardship

Section 64 outlines how Housing Australia must establish policies and procedures for dealing with participants in hardship circumstances. To ensure Housing Australia is able to exercise judgement in determining the most appropriate course of action for participants experiencing hardship, Housing Australia must consider individual circumstances when administering the Scheme.

The intention of section 64 is to enable Housing Australia to address issues of hardship through its internal policies and procedures, and its contractual arrangements with participants. This recognises there are exceptional circumstances where it is appropriate for participants to not be required to comply with obligations under the Help to Buy Scheme.

For example, if a participant no longer receives assessable income and they have no primary mortgage remaining with a participating lender, Housing Australia could cancel the review process required at section 35, if it was Housing Australia’s opinion that the participant should be excused from that process.

Principles for operation of the Help to Buy Scheme

Section 65 provides principles under which Housing Australia must operate Help to Buy. This is consistent with current practice for the Home Guarantee Scheme, where Housing Australia is guided by principles listed in section 29K of the Investment Mandate.

The Government expects Housing Australia to administer Help to Buy with integrity; to promote the object of the Scheme, which is to improve housing outcomes for Australians by assisting low and middle-income individuals to buy homes; and in a manner consistent with the Help to Buy Intergovernmental Agreement between the Commonwealth and participating and cooperating States and the Territories.

The Help to Buy Intergovernmental Agreement is incorporated into the Instrument. Consistent with subparagraph 14(1)(b)(i) of the Legislation Act 2003, the Agreement is incorporated as in force at the commencement of the Directions. The Help to Buy Intergovernmental Agreement can be accessed on the Treasury Department website for supporting people into home ownership.

Housing Australia is subject to the Public Governance, Performance and Accountability Act 2013 which requires it to achieve value for money in its operational expenses.  

The Government also expects Housing Australia to administer the Scheme in a manner designed to effectively manage risks associated with the Scheme, including by managing the risk of fraud and non-compliance in relation to arrangements and other agreements; to give applicants as much flexibility as possible in their choice of home and in decisions relating to the relevant property; to ensure that the Scheme is consistent with the industry and community standards and expectations that exist at the time Housing Australia is acting; encourage participants to repay the Commonwealth share as early as their financial circumstances permit; to protect the Commonwealth’s financial interest from loss; and raise awareness and educate interested parties about the Scheme.

SCHEDULE 1 – PARTICIPATION REQUIREMENTS

Section 28 of the Instrument directs Housing Australia to ensure that the terms and conditions of Help to Buy arrangements oblige participants to comply with participation requirements noted in Schedule 1. To avoid doubt, Schedule 1 does not impose any legal obligations on participants directly as the Instrument is a direction to Housing Australia.

Imposing ongoing obligations on participants supports the integrity of the Scheme and ensures that funding is provided to Australians who are most in need of housing assistance.

If a participant breaches any of the requirements, they may be required by Housing Australia to undergo the assessment and repayment process under section 37. This will ensure that integrity of the Scheme is maintained and Help to Buy continues to be targeted to the intended demographic of low and middle-income Australians.

Participants in and applicants for the Help to Buy Scheme are required to provide personal information, including financial information, if they wish to participate in the Help to Buy Scheme. Participating lenders will also seek a range of similar information with the express consent of individuals seeking home loan finance secured by a first mortgage and also support from the Commonwealth under the Help to Buy Scheme to be secured by a second mortgage.

It is critical given the level of Commonwealth homebuyer support under the Help to Buy Scheme provided to individuals that it is appropriately targeted to qualifying persons. In particular, individuals’ personal and financial circumstances must require that they need support to achieve home ownership and they do not have significant income or assets that would enable them to purchase or construct a residence without Commonwealth support. Accordingly, a range of information is sought to establish if an individual is an eligible applicant. 

Clause 1.5 of Schedule 1 to the Directions requires participants to notify Housing Australia about their intention to borrow additional funds from a participating lender. Participants must provide additional information if required to enable Housing Australia to confirm they maintain the relevant property as their principal place of residence (Clause 1.3 of Schedule 1 to the Directions); have not acquired a disqualifying property interest (Clause 1.7 of Schedule 1 to the Directions), are maintaining the property to preserve its value (Clause 1.8 of Schedule 1 to the Directions); have maintained adequate insurance and paid ongoing costs (Clauses 1.11 and 1.12 of Schedule 1 to the Directions); and have notified Housing Australia of any change of circumstances, including ceasing to be an Australian citizen, refinancing or discharging their mortgage, or if progress payments on a contract to build a new home have become due and payable (Clause 1.13 of Schedule 1 to the Directions). 

Information on individuals’ personal and financial circumstances is sought pursuant to the following provisions in the Directions:

•                 Section 17 provides for how to determine who is an eligible applicant. To be satisfied that an applicant is an eligible applicant, Housing Australia is required to collect information regarding a person’s age and citizenship (paragraph 17(a)); taxable income and any assets and liabilities (paragraph 17(b)); place of residence (paragraph 17(c)); receipt of any other home buyer assistance (paragraph 17(d)); any other property holdings (paragraph 17(e)); and relationship status (paragraph 17(f)). Section 17 also requires an applicant to provide information to evidence that they will, either individually or jointly with another applicant, upon settlement, be the only registered owner of the property (paragraph 17(g)).

•                 Section 18 allows single parents to obtain more concessional treatment under the disqualifying property test. Accordingly, Housing Australia will need to be satisfied of the sole parent status of applicants to ensure that this concession is not improperly accessed by individuals who do not satisfy this requirement but still seek to claim it.

•                 Section 19 sets out how the income test is satisfied. To be satisfied that the income test is met, Housing Australia is required to obtain information regarding the applicant’s taxable income.

•                 Section 20 sets out how the financial capacity test is satisfied. To be satisfied that the test is met, Housing Australia is required to have regard to the value of an applicant’s assets, liabilities, income, and any other financial assistance they receive from the Commonwealth, a state or territory.

•                 Subsection 22(1) provides for requirements relating to mortgages. Housing Australia will need information regarding mortgages to be satisfied that an applicant or applicants are the only counterparties to the mortgage, the mortgage is not a line of credit, the mortgage requires scheduled repayments of principal and interest, the mortgage does not exceed 30 years, and the applicant or applicants have granted a second mortgage over the relevant property in favour of the Commonwealth.

•                 Section 23 provides for requirements relating to the construction of a new home. Housing Australia will need information to confirm that the construction contract is for a fixed price and does not exceed the relevant price cap, the builder holds all required licences and registrations to perform the work, necessary insurance policies are in place, the contract is at arm’s length, and the contract requires the construction of a fully completed dwelling that is certified as fit for occupation.

•                 Under section 24, Housing Australia will need information regarding the construction timeframes for new homes.

•                 Under section 25, Housing Australia requires information on the participating lender’s assessed valuation of a property supported by the Scheme. This is to ensure that if the assessed value at settlement is lower than the purchase price or where the participant’s negligence, fraudulent behaviour or other unreasonable deliberate or reckless act or omission impacts the value of the property, Housing Australia can adjust the Commonwealth’s equity share to protect the Commonwealth’s interests.

•                 Under section 29, Housing Australia must have regard to hardship and other compassionate grounds that a participant communicates to Housing Australia when considering the time within which a participant must sell an existing property. Under section 30, Housing Australia must have regard to information provided to it by participants concerning defence force postings, required employment relocations, carer responsibilities or personal serious illness, or other compassionate circumstances.

•                 Section 33 requires Housing Australia to monitor participants’ compliance with the participation requirements, and section 34 requires Housing Australia to conduct 5-yearly reviews of each Help to Buy arrangement. This will require Housing Australia to obtain information regarding the participant’s taxable income, and whether they continue to meet the participation requirements set out in Schedule 1 to the Direction. The requirements are that the participant does not hold a disqualifying property interest for more than four weeks after becoming the registered owner of a relevant property; they remain the only registered owner of the property; the property remains their principal place of residence; they have not taken out further mortgages except in accordance with clause 1.4; they have not borrowed additional funds without notifying Housing Australia; they have not received assistance from other Commonwealth, state or territory housing support schemes; they have not acquired a disqualifying property interest; they have maintained the property; they have not leased the property; they have not used the property for business purposes; they have maintained adequate insurance for the property; they have paid costs associated with owning the property (rates, strata etc.); they have notified Housing Australia of relevant changes to their circumstances; and they have not varied or entered into new construction contracts except in accordance with clause 1.14.    

•                 Section 64 provides that Housing Australia must have arrangements to deal with participants that are experiencing hardship, and this will require personal and financial information to be provided to allow Housing Australia to assess the merits of the hardship claim by participants.

The above information is required to ensure that the Help to Buy Scheme is appropriately targeted to eligible applicants given the significant Commonwealth support under the Scheme, and that the Commonwealth’s share in properties is appropriately protected. The protection and safeguarding of personal information that is collected for the purposes of establishing the eligibility of applicants for the Help to Buy Scheme and the ongoing compliance with required obligations is an important element of the operation of the Scheme. Any decision to seek support under the Help to Buy Scheme is a matter for prospective home buyers in the knowledge that the Commonwealth needs to obtain a range of personal and financial information to ensure that the Commonwealth directs support to those most in need.

Housing Australia has an obligation to and is expected to manage, safeguard and use personal information consistent with the requirements of the Privacy Act 1988. Housing Australia has completed a preliminary privacy impact assessment and will finalise the assessment shortly once the administrative systems for the operation of the Scheme are completed.

Sale of existing property (clause 1.1)

Clause 1.1 applies to single parents (which includes single legal guardians) and limits the length of time they can hold a disqualifying property interest after becoming the registered owner of the Help to Buy property to four weeks. This is to allow simultaneous settlement. For example, settlement of the sale of the family home in which the single parent had an interest, and settlement of the purchase of the new Help to Buy property by the single parent on their own can occur concurrently. Once the single parent has settled on the purchase of the Help to Buy property, they have four weeks to settle on the sale of the other property. As noted above in section 29, Housing Australia can extend the four-week period if it considers that this is reasonable in the circumstances and the participant is experiencing hardship or on other compassionate grounds.

The intended policy outcome is that a participant in an arrangement who is a single parent (which includes single legal guardians) will not need to find temporary accommodation after the family home (in which the single parent has an interest) is sold to then be eligible to access Help to Buy. Where the family home is being sold, and the single parent has an interest in it, this interest should not preclude a single parent from applying for a Help to Buy arrangement.

Registered ownership of the property (clause 1.2)

Clause 1.2 requires a participant to remain the only registered owner of the property. In the case of joint participants, both joint participants must remain the only registered owners of the property. The only exception to this requirement is provided by section 45 of the Instrument which applies where a deceased participant’s interest in the property is inherited by a beneficiary of the estate of the deceased or the surviving participant.

Principal place of residence, leasing and business (clauses 1.3, 1.9 and 1.10)

The purpose of Help to Buy is to support home ownership of residential property. Therefore clauses 1.3, 1.9 and 1.10 ensure that the Scheme’s scope is limited to owner occupiers rather than enabling participants to buy property for income earning or business purposes, or as an investment property.

Clause 1.10 is not intended to preclude an employee or business owner from working from home if they otherwise meet the eligibility requirements. However, using the property as a place of business or place of conducting a commercial activity, including registering the property as a place of business, would not be permitted.

Further mortgages over property (clause 1.4)

Section 22 of the Instrument sets out the mortgage requirements in relation to a Help to Buy arrangement. The Instrument provides that a Help to Buy arrangement will be structured with two mortgages over the property. These are the first mortgage that a participant takes with a participating lender and the second mortgage (in favour of Housing Australia) that secures the Commonwealth share in the property.

Housing Australia must require that a participant does not take out any further mortgages over the property. Housing Australia will set out this requirement in the terms and conditions of each arrangement.

This requirement means that a participant can only hold a single mortgage with a participating lender at any time. To avoid doubt, a participant is able to discharge their mortgage with their current participating lender by taking out a new mortgage with another participating lender.

A participant can refinance with a non-participating lender if they first repay the Commonwealth share in full.

Notification obligations when borrowing additional funds (clause 1.5)

Housing Australia must impose limits on borrowing additional funds from a participating lender. Participants are required to notify Housing Australia if they wish to borrow additional funds under their mortgage with their participating lender or take a new and larger mortgage with a new participating lender to discharge their mortgage with their current participating lender.

To avoid doubt, the note to subsection 1.5(1) provides that Housing Australia must ensure that a Help to Buy arrangement allows a participant to increase the size of their mortgage only where the proposed increase is for a specified purpose (as set out in section 32). This provision is not intended to require a participant to notify Housing Australia of any other borrowing or place limits on the participant’s ability to borrow additional funds from a lender on non-mortgage types of debt (for example, a credit card, a personal loan, or a car loan).

Assistance from other relevant schemes and acquiring a disqualifying property interest (clauses 1.6 and 1.7)

If a participant receives assistance from other schemes or acquires a disqualifying property interest then they will no longer be eligible for Help to Buy. The other schemes are:

•                 a home-buyer guarantee provided by a Commonwealth entity or Commonwealth company;

•                 a shared equity scheme (as defined in section 5);

•                 a loan or guarantee provided by or on behalf of a State or Territory to support home ownership.

Disqualifying property interest is defined in section 5. These prohibitions ensure that Help to Buy is appropriately targeted and meets its objectives of supporting those who cannot otherwise access homeownership by other means.

There is a grace period of two years if a participant inherits a disqualifying property interest as a beneficiary of a deceased estate.

Property maintenance (clause 1.8)

Housing Australia must require a participant to maintain their property to a standard that is adequate to preserve its value. This is to ensure the property is fit for occupation. Housing Australia is to specify the adequate standard to which the property must be maintained in the terms and conditions of each arrangement. Subject to the terms and conditions, maintenance activities could include cleaning, garbage disposal, pest control and repairs.

Insurance (clause 1.11)

It is important that a participant maintain adequate insurance over the relevant property to protect their interest and the Commonwealth’s interest in the property. Participants are required to keep the relevant property adequately insured over the life of the Scheme and provide evidence to Housing Australia of their insurance arrangements each year. Insurance requirements are intended to be flexible and therefore contained within the contractual arrangement with Housing Australia, which can be adjusted over time.

Ongoing costs (clause 1.12)

Participants are responsible for ongoing costs associated with the property. Housing Australia must oblige a participant to ensure all ongoing costs (such as council rates, strata fees and utility bills) are paid. The terms and conditions of Help to Buy arrangements will impose this requirement on participants.

Change of circumstances (clause 1.13)

The proposed list of change in circumstances that participants are required to report to Housing Australia assists Housing Australia to be aware of whether participants continue to be compliant with the requirements of the Scheme. Housing Australia would be expected to consider the change of circumstances and administer the arrangement in line with the principles outlined at section 65. This may include varying or terminating the arrangement, subject to its powers under Part 3 of the Program Directions.

There is a notification timeframe of 90 days from when the participant became aware, or should have become aware, of the relevant event. A participant must give notice to Housing Australia in a form approved by Housing Australia. 

Vary or enter new construction contracts (clause 1.14)

The ability to vary the contract enables changes to the original contract where the participant decides to make a change during the construction process which impacts the contract price (e.g. installing a different kitchen). However, this is still subject to limits listed in clause 1.14(1), including that the varied contract would result in the construction of substantially the same dwelling as the original contract, and the varied purchase price will not exceed the price cap.

Replacement or new construction contracts can be entered where Housing Australia is satisfied that the original contract has been terminated for reasons outside of the participant’s control, or that it is otherwise appropriate for the participant to terminate the original contract given the circumstances (as outlined in clause 1.14(2)(a)) and the list of conditions is met from clause 1.14(2)(b) to (g)).

Prior to varying or replacing the original contract, the participant must notify Housing Australia so that it can assess whether the varied or replacement contract is eligible (for example, it falls under the price caps, and there are no changes to the construction timeframe). The notice period is 21 days before the contract variation is executed or the original contract was terminated. Where it is not possible for a participant to give the 21 days’ notice, the participant must give notice as early as possible in the circumstances.

ATTACHMENT B

Impact Analysis

See pages 53 to 95 below.

Impact Analysis

Help to Buy Shared Equity Scheme

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Contents

Executive Summary...............................................................52

1. What is the policy problem Help to Buy is trying to solve?.................................55

2. Why is Government action needed?.................................................63

3. Policy options: Status quo versus Help to Buy..........................................67

4. What are the likely net benefits of Help to Buy.........................................71

5. Consultation..................................................................81

6. Chosen option and implementation.................................................85

7. Measuring success..............................................................88

Executive Summary

This Impact Analysis has been prepared by the Department of the Treasury (Treasury) to support the Government’s decision to implement the Help to Buy scheme (the scheme) 2022 election commitment. The proposed scheme will support eligible Australians who would otherwise not be able to enter the housing market, including low- and middle-income earners, key workers, single parents, mature aged women, and long-term renters, to purchase a home of their own.

While an impact analysis is not required by the Help to Buy Act 2024, a preliminary draft of this Impact Analysis was provided to the Government to inform initial consideration of the scheme. Extensive targeted and public consultation has been undertaken as part of the policy design process. Information from these consultation processes has been incorporated into this Impact Analysis.

Policy problem and Scheme design

Australia has seen a decades long fall in home ownership, falling from 71.4 per cent in 1994 to 66.3 per cent in 2021.[1] This has resulted in more households renting for longer, increasing pressure on the rental market and preventing many Australians from achieving the benefits offered by home ownership. The average age of first homebuyers has increased significantly, between 1991 and 2021 the number of Australians aged between 40 and 44 who owned their own home fell from 75.1 per cent to 64.9 per cent.[2]

To assist more Australians, and particularly low- and middle-income households, into home ownership, the Government committed to establishing the Help to Buy shared equity scheme as part of its 2022 election platform. The Help to Buy scheme will assist 10,000 Australian households each year for 4 years to purchase a home by providing an equity contribution from the Government. This equity contribution will be capped at 30 per cent for existing homes and 40 per cent for new homes, with a minimum deposit requirement of 2 per cent.  No interest will be charged on the Commonwealth’s equity contribution, while the financial risk and benefit will be shared between the participant and the Commonwealth proportionate to their interests.

The scheme will be available to eligible Australians who earn up to $100,000 for single and $160,000 for joint applicants to purchase properties at or below the relevant price cap in each area. The financial capacity of applicants will also be assessed by lenders and Housing Australia to ensure the scheme is targeted to Australians who would not otherwise be able to purchase a home. As much as possible, participants in the scheme will be treated as owners, particularly in relation to the right to make modifications and renovate their property. Additionally, participants will be able to repurchase the Government share over time, increasing their share of the home and proportionally reducing the Government’s.

The purpose of the scheme is to make home ownership achievable for more Australians. By significantly lowering both the deposit and ongoing mortgage repayments required to purchase a home, the scheme will directly assist 40,000 Australian households to achieve home ownership compared to the status quo.

The scheme will be managed by Housing Australia, alongside a number of other Government housing programs, in particular the Home Guarantee Scheme (HGS) and the Housing Australia Future Fund. Housing Australia will leverage the experience of establishing HGS to minimise additional implementation costs where possible. Housing Australia will also be responsible for selecting the panel of participating lenders who will play a key role in facilitating prospective applicants to enter the scheme.

The scheme is a key part of the Government’s Homes for Australia agenda and will provide significant direct support to aspiring homebuyers.

The Impact Analysis has found that implementing the scheme will provide material benefit in assisting Australians into home ownership compared to maintaining the status quo. As the scheme is a Government election commitment, this Impact Analysis only compares the policy against the status quo, in accordance with Office of Impact Analysis guidance.

Background to the Impact Analysis

This final version of the Impact Analysis has been prepared for the Government in June 2025, and will inform the Minister’s decision to approve the Help to Buy Program Directions that will allow Housing Australia to commence delivery of the scheme.

Key milestones in the development of the Help to Buy scheme, informed by the draft and final analyses provided in this Impact Analysis, include:

• announcement of the Help to Buy scheme as an election commitment in May 2022
• initial announcement of the Help to Buy scheme as part of the October 2022-23 Budget
• agreement by states and territories at National Cabinet to implement the Help to Buy scheme nationally in August 2023
• passage of the Help to Buy Bill 2023 and the Help to Buy (Consequential Provisions) Bill 2023 through the House of Representatives on 28 February 2024, following introduction on 30 November 2023
• release of exposure draft of the Help to Buy Program Directions and explanatory materials for public consultation between 23 April 2024 and 21 May 2024
• passage through the Queensland Parliament on 11 June 2024 of the Queensland Help to Buy (Commonwealth Powers) Bill with Royal Assent on 19 June 2024, following introduction on 2 May 2024
• introduction of the Help to Buy Bill 2023 and the Help to Buy (Consequential Provisions) Bill 2023 into the Senate on 29 February 2024 with passage on 26 November 2024. Passage through both houses following House agreement to Senate amendments on 27 November 2024 with Royal Assent on 10 December 2024
• final state and territory agreement to the Help to Buy Program Directions on 22 April 2025 following the completion of the statutory consultation period as required under the Help to Buy Act 2024.

1. What is the policy problem Help to Buy is trying to solve?

1.1 Rates of home ownership in Australia are declining

Home ownership rates have been falling in Australia over recent decades. While a variety of factors, including changing societal attitudes and norms, have impacted home ownership rates, the relative affordability of housing has fallen substantially over the past 4 decades. Strong and sustained increases in housing prices, particularly compared to growth in incomes, have made both saving for a deposit and servicing a mortgage significantly more challenging, particularly for low-income households. Between 1994 and 2021 rates of home ownership declined from 71.4 per cent to 66.3 per cent.[3]

Figure 1.1: Rates of Home ownership 1994-2020

Source: 2024-25 Budget, Budget Paper 1, p.137

There have been considerable falls in home ownership rates across most working-age groups. Between 1981 and 2021, home ownership rates for households aged 25-34 fell from 52 per cent to 32 per cent among the lowest two income quintiles, compared to 10 percentage points for households in the top income quintile. Although the decrease in home ownership rates is smaller for older age groups, the size of the drop across groups remains much larger for households in the bottom income quintiles compared to households in the top. For example, for 45-54 year old households, home ownership rates dropped by 18 percentage points in the lowest two quintiles, whilst remaining largely unchanged for those in the top quintile.[4]

While home ownership rates have fallen across age groups, the substantial reductions in rates for all income quintiles amongst younger cohorts demonstrates that achieving homeownership is no longer a challenge solely for lower income quintiles, but extends to most young Australians.

Figure 1.2: Home ownership rates by age and income, 1981 and 2021

Source: Grattan Institute[5]

Overall, however, home ownership rates are lower for low-income households. Australian Bureau of Statistics (ABS) data show that 60.7 per cent of households in the lowest income quintile own their home, compared to 74.1 per cent of households in the highest income quintile.[6]

1.2 Saving a deposit and servicing a mortgage have become more difficult

A combination of factors over the past three decades have contributed to home ownership in Australia becoming increasingly out of reach for low- and middle-income households in particular.

The factors contributing to strong and sustained increases in housing prices are well documented and include, declining nominal interest rates, financial liberalisation, higher rates of population growth and rising incomes.[7] Housing price growth has, on average, significantly exceeded income growth.[8] As a result, the ratio of both housing prices and household debt to household disposable incomes has increased substantially in Australia over recent decades (Figure 1.3).

Figure 1.3: Housing prices and household debt to income

Deposit hurdle

As a result of rising housing price to income ratios, the ‘deposit hurdle’ – the challenge of accumulating a sufficiently-sized deposit to purchase a home (and to support a home loan application) – has grown significantly (Figure 1.4). The average time needed for a median household to save a 20 per cent deposit remains at elevated levels, with the national figure currently at 10.6 years as of September 2024. This has fallen from peak levels of 11.4 years in the March quarter 2022 but remains well above the average of the past two decades (9.0 years).[9]

Figure 1.4: Years required to save a 20 per cent deposit

Source: CoreLogic, ANU

Large and increasing deposit hurdles over recent years have made the challenge of attaining home ownership more difficult, and while this challenge is faced across the income spectrum, observed home ownership outcomes indicate that the challenges have been particularly acute for low- to middle-income households.[10]

Serviceability hurdle

Another challenge facing homebuyers is the ‘serviceability hurdle’, which measures the ratio of income to mortgage repayments. Rapidly increasing house prices have seen this ratio increase substantially, for prospective homebuyers, the portion of income required to service a loan has increased to over 50 per cent in 2024,[11] significantly above the long-run average of 36.6 per cent (figure 5.1).[12]

Figure 1.5: Share of income to service new loan

Source: CoreLogic, ANU

PropTrack also tracks this hurdle through its PropTrack Affordability Index, which summarises the capacity for households of different incomes to afford homes across Australia, based on a household spending 25 per cent of their pre-tax income on mortgage repayments. A measure of 1.00 means all households can afford homes in proportion to their income.

The index had previously been at historically high levels, likely due to sustained low interest rates, particularly over the pandemic, which have put downward pressure on serviceability challenges. However, since 2021 the index has fallen precipitously and is now at its lowest level since records began in 1994-95 (Figure 1.6), with a median-income household able to afford just 14 per cent of homes sold across Australia in 2024.[13]

Figure 1.6: PropTrack Affordability Index

Source: PropTrack, ABS, RBA

Alongside this decrease in affordability, the official cash rate has increased from 0.1 to 3.85 per cent as of May 2025, reducing the borrowing power of prospective home buyers.[14] While the increased difficulty of servicing a mortgage will affect all home owners, the impact will be particularly acute for low- to middle- income households who may be priced out of home ownership altogether. This is reflected in the results from the four major banks and the number of loans being issued at various income levels.

As an illustrative example, according to Commonwealth Bank disclosures, in the six months to 30 June 2024, there were 2.4 times as many owner-occupied mortgages written to households with incomes over $200,000 than to households with incomes below $100,000, despite the fact that median household income is approximately $115,000.[15]

1.3 Existing Government support predominantly targets the deposit hurdle

The significant challenges faced by many prospective homebuyers can be alleviated by targeted Government support. The existing support provided by HGS provides an example of Government support that directly assists Australians in purchasing a home.

Under HGS, a home buyer’s loan is guaranteed by Housing Australia up to a maximum of 15 per cent of the value of the property (with the Family Home Guarantee, which is specifically targeted at single parent households, allowing for a maximum guarantee of 18 per cent). This allows Australians to purchase a home with as little as a 5 per cent deposit (or 2 per cent for the Family Home Guarantee) without the need to obtain Lenders Mortgage Insurance.

As of March 2025, HGS has provided support to over 150,000 Australians since May 2022, including around 1 in 3 first home buyers in 2023-24.[16] Participants in HGS were generally low to middle income, with the typical recipient of the First Home Buyers Guarantee (the largest single guarantee scheme) having an income of $83,000 for singles and $132,000 for joint borrowers. The average purchase price was similarly modest at $482,000 for single and $624,000 for joint borrowers. Additionally, HGS has been particularly important for key workers including teachers, nurses and social workers, with over a quarter of guarantees issues under the First Home Buyers Guarantee Scheme going to workers in these professions.[17]

The effect of HGS is also significant, with Housing Australia estimating that the First Home Loan Deposit Scheme, a predecessor of HGS, brought forward the average home purchase by an average of four years.[18] Given the rapid growth in house prices in Australia, and the difference between house price and income growth, for many participants this could be critical in allowing them to achieve home ownership.

The success of HGS demonstrates the role targeted Government support can play in helping Australians into home ownership. However, it should be noted that HGS only provides support to overcome the deposit hurdle, this means individuals may still be constrained by their ability to service a loan.

1.4 Help to Buy is part of a broader housing reform agenda

Help to Buy is part of the Government’s Homes for Australia plan, a broad suite of policies designed to address pressures across all parts of the housing system, working together in a complementary manner. While each housing measure is designed to target a very specific problem in the housing system, some of the major policies can be broadly grouped into four categories.

Measures to support first home ownership

•                    The Home Guarantee Scheme has helped more than 150,000 people into home ownership. The scheme has now been expanded significantly - changes will see friends, siblings, and other family members eligible for joint applications under the First Home Guarantee and the Regional First Home Buyer Guarantee, as well as extend the Regional First Home Buyer Guarantee and Family Home Guarantee to 30 June 2029.

Measures to support new supply

•                    On 16 August 2023, National Cabinet agreed to a new national target to build 1.2 million homes over five years from 1 July 2024. This is an additional 200,000 new homes above the National Housing Accord agreed by states and territories in 2022. As part of the National Cabinet meeting, the Government announced:

      $3 billion for a New Homes Bonus, for states and territories that achieve more than their share of the one million well-located homes target under the National Housing Accord

      $500 million for a Housing Support Program, a program for local and state and territory governments to kick-start housing supply in well located areas

      a National Planning Reform Blueprint with planning, zoning, land release and other measures to improve housing supply and affordability.

•                    Tax incentives have been provided to encourage more build-to-rent developments to boost new supply in the private rental market.

Measures to support low-income and vulnerable households

•                    The Housing Australia Future Fund (HAFF) and Accord will support the delivery of 40,000 new social and affordable homes and fund a range of acute housing needs over its first five years.

•                    The $2 billion Social Housing Accelerator is a direct payment to the states and territories to help deliver thousands of new social homes across Australia.

•                    Commonwealth Rent Assistance has been increased, with a 15 per cent increase in the maximum rates in the 2023-24 Budget from 20 September 2023, followed by a further 10 per cent increase to maximum rates in the 2024-25 Budget.

Measures to support homelessness and other acute housing needs, including crisis and transitional housing

•                    National Cabinet has agreed a new, 5-year $9.3 billion National Agreement on Social Housing and Homelessness (NASHH) for states and territories to combat homelessness, provide crisis support and build and repair social housing.

2. Why is Government action needed?

2.1 Home ownership benefits individuals and society

Access to affordable and quality housing provides significant benefits both to individuals and society more broadly. While many of these benefits can also be provided by affordable and high-quality rental accommodation, home ownership can increase the extent of these benefits.[19]

In particular, home ownership provides greater security of tenure, providing significant benefits to owners as well as minimising disruptions to established social networks. Additionally, giving owner occupiers more control over the property can help promote health outcomes and physical wellbeing, reduce the incidence of socially disruptive behaviour, support better access to aged care and disability services, and generally provides stronger incentives for civic involvement.[20]

Home ownership is also important for Australians’ retirement outcomes. Treasury’s retirement income review found that “the home is the most important component of voluntary savings and is an important factor influencing retirement outcomes and how people feel about retirement”.[21] Homeowners generally have lower housing costs in retirement and an asset that can be drawn on as necessary. This generally translates into lower dependence on Government support as well as better outcomes for retired Australians.[22]

2.2 Low- and middle-income households are not achieving home ownership without support

The private housing market in Australia has becoming increasingly unaffordable for many low- and middle-income Australians. As discussed in Section 1, rapid growth in house prices, particularly compared with income growth, has made it significantly more difficult both to save a deposit and to afford repayments, particularly given the significant increases in interest rates since April 2022. Micro level analysis conducted for the Australian Housing and Urban Research Institute (AHURI) estimated that, in 2023, only 11 per cent of aspiring homebuyers would be able to become homeowners without assistance from Government or other sources.[23] This demonstrates that the existing private housing market is failing to support home ownership for many low- and middle-income Australians.

Aspiring homebuyers in Australia face two principal constraints, the deposit hurdle and the serviceability hurdle. As discussed in Section 1, the deposit hurdle represents the difficulty many Australians face in saving a 20 per cent deposit. The serviceability hurdle represents the difficulty in affording the regular repayments on a standard mortgage. Households who are unable to satisfy one or both hurdles will be unable to purchase a home.

While these constraints may often both be applicable, AHURI analysis indicates that while 84 per cent of aspiring homebuyers are constrained by the deposit hurdle, 71 per cent are constrained by the serviceability hurdle.[24] The private market has provided a solution to the deposit hurdle in the form of lenders mortgage insurance (LMI). LMI covers a lender against the risk of a property being sold for less than the outstanding balance of a loan. By providing lenders with insurance against risks of depreciation and default it allows households with a deposit of less than 20 per cent to purchase a home, providing a market solution to the deposit hurdle.

However, as homebuyers must generally pay the premiums associated with LMI it does not provide a general solution to the deposit hurdle. For a first home buyer purchasing a $700,000 property with a 5 per cent ($35,000) deposit, the typical upfront LMI premium would be almost $28,000.[25] While LMI provides a private market solution to the deposit hurdle for some homebuyers, it may not be appropriate for many low- and middle-income Australians and will generally increase the number of households who are constrained by the serviceability hurdle, as well as substantially increasing the costs associated with home ownership.

2.3 Existing Commonwealth programs do not provide assistance to households in overcoming the serviceability hurdle

To address the barrier to home ownership posed by the deposit hurdle, the Government has expanded support available under HGS. HGS provides up to 50,000 loan guarantees to eligible households to assist those buyers overcome the deposit hurdle which, as noted above, constrains approximately 84 per cent of aspiring homebuyers.

As discussed in Section 1, HGS has provided significant support to Australians in overcoming the deposit hurdle and achieving home ownership. HGS is targeted at home buyers on higher incomes than Help to Buy with current income caps of $125,000 for single and $200,000 for joint applicants. Modelling conducted for AHURI suggests that around 16 per cent of aspiring homeowners are eligible for HGS and it would assist approximately 22 per cent of these by removing all relevant constraints and allowing them to achieve home ownership.[26]

While HGS assists home buyers on moderate to higher incomes overcome the deposit hurdle – having successfully supported more than 200,000 Australian as of March 2025 – it does not address the serviceability hurdle. Mortgage guarantees generally support households that can afford the cost of servicing the debt required to purchase a home – applicants still need to have sufficient means to service a high loan-to-valuation ratio loan. For those on lower incomes, the barriers to home ownership are both on the deposit and serviceability side, making mortgage guarantees less useful for lower income households who do not have the financial means to service a mortgage, particularly one at a high loan-to-valuation ratio. As noted above, the serviceability hurdle constrains 71 per cent of aspiring homebuyers.[27]

2.4 What is the objective and how will success be measured

The primary policy objective that Government is seeking to address is to provide targeted assistance that will allow low- and middle- income Australian households to achieve home ownership in cases where this would not otherwise be possible.

3. Policy options: Status quo versus Help to Buy

Implementing the Help to Buy scheme is a Government election commitment. As such, the two options considered are maintaining the status quo (option 1) or implementing the Help to Buy scheme (option 2).

3.1 Status quo

The status quo would be for the Government to not provide a shared equity scheme to support first homebuyers. The Government will continue to provide support to eligible homebuyers through the First Home Guarantee, Family Home Guarantee and the Regional First Home Buyer Guarantee.

These schemes will collectively provide up to 50,000 guarantees each year until 20 June 2029, and 35,000 thereafter, to eligible buyers to buy a home with a deposit as low as 5 per cent (or 2 per cent for the Family Home Guarantee) without needing to pay LMI.

While these schemes assist homebuyers on moderate incomes (income caps of $125,000 for singles and $200,000 for joint applicants apply) to overcome the deposit hurdle, they do not address the serviceability hurdle. As noted above, this would leave a gap in support and constrain low- and middle-income Australians from achieving home ownership.

As the Help to Buy scheme provides direct assistance to 40,000 aspiring homebuyers, the Government not providing support through Help to Buy would result in those 40,000 Australians being less likely to achieve home ownership.

3.2 Implementing the Help to Buy Scheme

The Help to Buy scheme will address both the deposit and serviceability hurdles to home ownership. Under the proposed scheme, the Government would help to meet the upfront capital cost of purchasing a home, thus reducing the size of the mortgage required by an eligible home buyer.

Help to Buy has lower income caps ($100,000 for single applicants and $160,000 for joint applicants) than HGS. These lower caps are intended to target low- and middle-income earners who lack the borrowing power required to service a typical mortgage for a modest home.

Help to Buy will be open to 10,000 Australian households each year (over four years). Eligible homebuyers will need a minimum deposit of 2 per cent, and the Government will provide an equity contribution of up 40 per cent of the purchase price of a new home and up to 30 per cent of the purchase price of an existing home.

Price caps for eligible properties under Help to Buy has been set at the median of all house prices in relevant areas, with the exception of the capital city and regional centre area of New South Wales, which has been set with reference to the purchasing capacity of two joint applicants under the scheme. Caps have been set with reference to median prices consistent with the Government’s policy direction to make the scheme available to low- and medium-income earners. Lower property caps may have the effect of excluding these participants from significant portions of the housing market, undermining the central purpose of the scheme. It is intended that the price caps will continue to be reviewed and updated as appropriate, based on market conditions. Current price caps for the scheme are:

Interaction with participants

While the precise nature of the roles and responsibilities of Housing Australia, lenders and participants will be finalised during implementation, the Program Directions provide detail on how these interactions will be managed.

Income caps, refinancing and exit from the scheme

Under the Program Directions, when participants exceed the income caps, they will be expected to work with their bank to determine how much, if any, of the Commonwealth’s share they can repay. The Commonwealth will empower Housing Australia to consider whether the participant should be required to repay all or part of the Commonwealth contribution based on: their financial capacity at that time, as assessed by a lender, and; the participant’s personal circumstances. This legislated requirement will ensure participants repay the Commonwealth share, as appropriate for their financial circumstances, alongside their regular mortgage repayments. Participants will also be able to make voluntary repayments of the Commonwealth’s contribution at any time to increase their stake in the property, including by refinancing.

Sale of the property

Participants will be the sole owner of their property and as such will be able to decide to sell at any time. In such circumstances, sale will proceed as with any other sale of residential property. The capital gains and losses received by the Commonwealth will be calculated with reference to the size of its equity share in the property. Regardless of circumstances, the Commonwealth will not be able to unilaterally force sale.

Renovations and revaluations

The Program Directions provide for participants to benefit from renovations they undertake to their property. For participants to claim the full value uplift of the renovation, the Program Directions require the property be valued both before and after the renovation is undertaken. The Commonwealth’s share of the property will then be adjusted to reflect the change in value due to the renovation.

Inheritance

Where a scheme participant passes away and their beneficiary would be eligible under the Program Directions, the beneficiary will be able to participate in Help to Buy. Alternatively, beneficiaries (or their executors) may opt to instead repay the Commonwealth’s equity contribution.

Delivery through Housing Australia and lenders

The Help to Buy scheme will be implemented by Housing Australia working closely with selected lenders. Housing Australia is the primary delivery agency for Commonwealth Government housing programs and has considerable experience with the delivery of schemes such as HGS. In contrast to HGS, however, the Help to Buy scheme will require direct interaction between Housing Australia and participants. While details of these processes will be determined by Housing Australia during the implementation process, it is expected that Housing Australia will provide dedicated IT systems for the scheme, ensuring that all necessary interaction is as simple as possible for participants and lenders.

Lenders will also play an important role in the implementation of Help to Buy. As with HGS, it is expected Housing Australia will engage in a formal procurement process to select a panel of participating lenders who will assist in the delivery of Help to Buy. While the ongoing eligibility requirements in the Help to Buy Program Directions will necessitate some additional information gathering and verification procedures by lenders, it is expected that Housing Australia will engage closely with lenders to limit any disruptions and ensure any additional costs are minimised for all parties.

The Help to Buy scheme is intended to operate as a national scheme. As such, places will be allocated to participating States and Territories according to population. Additionally, Housing Australia will report on the share of places allocated to regional areas.

Governance model

The Help to Buy scheme will be implemented by Housing Australia subject to Directions given by the responsible Minister to the Housing Australia Board. These Ministerial directions are the Help to Buy Program Directions and include the detailed parameters and criteria for the scheme, while ensuring Housing Australia retains the flexibility to manage implementation or operational challenges.

Housing Australia will also be required to act in accordance with the requirements of subsections 10(3), 15(2) and 20(2) of the Help to Buy Act 2024. These provisions require Housing Australia to act in a proper, efficient and effective manner whilst undertaking its functions under the Act.

Housing Australia will also be required to provide regular reporting on a variety of aspects of the scheme. This will ensure that the principal objectives outlined in section 3 of the Help to Buy Act 2024 are being achieved, and the scheme framework is operating effectively.

4. What are the likely net benefits of Help to Buy

The analysis of the net benefit of the Help to Buy scheme compared to the status quo focuses principally on the direct financial benefits to participants. While home ownership has significant long-term economic and social benefits for individuals and benefits to society more broadly, these are often difficult to quantify.

It is expected that Housing Australia will, where possible, seek to minimise differences between the Help to Buy shared equity product and those of a standard residential mortgage product for lenders. As a result, consideration of regulatory burden focuses on areas where Help to Buy imposes potential additional costs when compared with a standard mortgage. Importantly, lenders have the choice of whether to participate in the scheme.

4.1 Status quo

Under the status quo option, the many homebuyers who have the borrowing power to service a mortgage but lack a sufficient deposit (or cannot afford LMI costs), can be supported into home ownership through HGS. HGS supports up to 50,000 Australian households each year to purchase a home. However, HGS can only support homebuyers who have the financial capacity to service a high loan-to-valuation ratio mortgage (up to 98 per cent of the value of the home). 

While there would be no Commonwealth-supported shared equity program under this option, a number of similar schemes are currently operated by state and territory governments.[29] However, these schemes are not available nationally, have small numbers of places and generally support a narrower cohort than the proposed Commonwealth model.

It should also be noted that one of the larger state shared equity schemes in Australia – the Victorian Homebuyer Fund – will receive one final year of funding in 2024-25 before ceasing. This will significantly reduce the aggregate level of support provided by states.

As Help to Buy is targeted specifically to individuals who would otherwise be unable to purchase a home, the cohort that will benefit from this scheme would not be able to achieve homeownership under the status quo. This has a wide variety of impacts which are outlined in the section below. While it is likely that some proportion of this cohort would be able to achieve homeownership in future, the evidence indicates that only around 30 per cent of the difference in homeownership rates between cohorts is made up within 10 years, and only around 50 per cent is made up within 20 years.[30] This indicates that, under the status quo option, of the cohort of 40,000 households, approximately 28,000 fewer would have achieved homeownership after 10 years, and 20,000 fewer would have achieved homeownership after 20 years.

Opting for the status quo and not implementing the Help to Buy shared equity scheme will result in low- and middle-income Australians continuing to face significant challenges in overcoming the deposit and serviceability hurdles.

4.2 Implementing the Help to Buy Scheme

The Help to Buy scheme would complement the Government’s existing Home Guarantee Scheme. Help to Buy will support 40,000 low- and middle- income households to purchase a home of their own and realise the social and economic benefits associated with home ownership. While the program will not target specific cohorts it is expected the program will support a range of vulnerable cohorts who are disproportionately represented amongst low- and middle- income earners, including single parents, mature aged women, First Nations Australians and long-term renters.

It is estimated that the Commonwealth will contribute $6.3 billion in equity investments through the Scheme. Actual investment will depend on a number of factors including property prices and interest rates. Costs will be subject to periodic updates, including to reflect the timing of the roll-out of the scheme, and actual program data including uptake, participant behaviour and other parameters.

Help to Buy will only be available to applicants who do not own any other property, either in Australia or overseas. Help to Buy also has lower income caps than the HGS. While households who are earning above the income caps will not be able to make use of Help to Buy, they will remain eligible for support under HGS, and approximately 50 per cent of dwellings would be accessible to these households given current market conditions and interest rate settings.

It is also possible the Help to Buy scheme may result in individuals who would otherwise purchase a relevant property being displaced by participants who are able to purchase them with the support of Help to Buy. However, as the scheme impacts at most 10,000 dwellings each year for 4 years, in the context of a market with around 530,000 residential property transactions in 2024,[31] the vast majority of these individuals are likely to be able to purchase a different dwelling. As the property price caps under the scheme have generally been set at the median house price in each housing market, the impact of the scheme will be concentrated in the entry level section of the market. However, given Treasury estimates that more than half of all transactions would be below the Help to Buy price caps, the total impact of the additional 10,000 transactions on prices in this subset of the market is also likely to be modest.[32]

The limited demand-side impact of the scheme is reflected in previous modelling by the Grattan Institute which estimated the scheme would increase prices by less than 0.02 per cent.[33] Additionally, the Help to Buy Program Directions require Housing Australia to satisfy itself that it is unlikely that the applicant (or joint applicants) could acquire the relevant property without the assistance of the Commonwealth through Help to Buy.

4.3 Help to Buy complements existing programs by providing targeted support

As has been discussed in Sections 1 and 2, the intersection of the deposit and serviceability hurdle faced by lower income households justifies government intervention. While many aspiring homeowners are constrained by both the deposit and serviceability hurdle, existing Government programs assist only with the former. AHURI modelling indicates that approximately 22 per cent of aspiring homebuyers who may be eligible for the scheme are able to achieve home ownership with the support of HGS, 55.8 per cent of eligible homebuyers remain constrained by one of the two hurdles even with the support of HGS.[34]

This demonstrates the need for Government support that is also able to assist aspiring homebuyers with the serviceability hurdle to achieve the policy goal of home ownership. According to AHURI modelling, approximately 31 per cent of aspiring homebuyers may have been eligible for a shared equity scheme modelled on the Help to Buy scheme in May 2023, noting that this does not take into account the increase to the income caps and property price caps in the 2025-26 Budget.

AHURI estimates this scheme could remove the relevant constraint for 41 per cent of eligible aspiring homebuyers. This represents a significant increase in the number of potentially eligible homebuyers that could be assisted into home ownership by the Help to Buy scheme in addition to those who could be assisted by HGS.[35] This clearly demonstrates the role that a shared equity scheme complementing existing Government programs could have in supporting home ownership in Australia.

Figure 4.1: Impact of Mortgage Guarantee and Shared Equity Schemes on constraints to home ownership among aspiring first homebuyers.[36]

4.4 Shared equity schemes have proven effective

This has been demonstrated through the strong take-up of shared equity schemes in various state and international jurisdictions. While the take-up of a scheme can vary depending on the eligibility criteria applied, evidence shows that appropriately designed shared equity schemes implemented by state governments have effectively supported home ownership for lower income households in Australia. In particular, as of November 2024 the Victorian Homebuyer Fund had assisted 13,700 households to purchase a home.[37]

Similar schemes are also relatively common overseas where there is a strong record of support for targeted household cohorts. Shared equity schemes operate in some US states, the United Kingdom, Canada, and New Zealand. Canada has a $1.25 billion shared equity program for first home buyers and a separate $100 million fund which supports equity mortgage providers.[38] In England, there were approximately 202,000 households living in shared ownership homes in 2021 and the use of shared ownership programs has increased in recent years. Approximately 76,500 new shared ownership homes were delivered between 2016 and 2021 and 90,000 new shared ownership homes are expected between 2021 and 2026 under the new £11.5 billion Affordable Homes Programme.[39] The successful administration of shared equity schemes in various state and international jurisdictions supports the position in this Impact Analysis that the Government has the capacity to intervene successfully.

4.5 Benefits to Scheme Participants

Lowered mortgage and rent repayments

Scheme participants will benefit from lower ongoing repayments from a smaller home loan – as the Commonwealth would share the up-front cost of purchasing a home – with the financial risk and benefit (capital gains and losses) to be shared between the participant and the Commonwealth proportionate to their interests.

The Government’s contribution – up to 40 per cent – will significantly reduce the mortgage required by the participant to facilitate the purchase, and it is expected that mortgage repayments would reduce by a similar order of magnitude. It is important to note that the exact size of each participant’s saving will be dependent on factors such as the precise terms of their loan, the size of the Commonwealth equity share. Participants will also benefit from any savings associated with no longer needing to participate in the rental market, as of December 2024 the median rent in Australia was $643 per week.[40]

Additional wealth accumulation

One of the principal benefits of home ownership is the additional equity created by the appreciation of home values over time. The Help to Buy scheme will assist 40,000 Australians to purchase a home that they would not otherwise be able to buy, allowing participants to benefit from the appreciation in value of their property. While a proportion of this equity appreciation will be shared with the Commonwealth, homeowners will still receive significant benefits from participating in the scheme. It is also important to note that no interest will be charged on Commonwealth’s equity contribution.

While the precise impact of this effect will be heavily dependent on property markets, the terms of a participant’s mortgage and the size of the Commonwealth’s equity stake, a potential quantification can be ascertained by considering the impact such a scheme would have had on an individual purchasing a property 30 years ago.

If an individual had been able to purchase a median dwelling through the use of a shared equity scheme in December 1994 at the median price of $123,411, and assuming that dwelling tracked price growth, that property would now be valued at approximately $820,331.[41] With a Government equity contribution of 30 per cent, the participant’s capital gain would be approximately $450,000, without factoring in further interest savings.

Benefits associated with home ownership

As discussed in Section 2, access to affordable and quality housing provides significant economic and social benefits both to individuals and society more broadly.[42] While many of these benefits can also be provided by affordable and high-quality rental accommodation, home ownership can increase the extent of these benefits. It can offer stable tenure, which supports long-term planning around work, education, and staying connected to your community. Financially, it can act as a form of savings, with mortgage repayments building equity over time, which is particularly important in improving retirement outcomes.[43] While these effects are difficult to quantify, they will provide real benefits to participants in the scheme.

Impact on house prices

Help to Buy increases the purchasing capacity of eligible applicants. Policies that increase the purchasing capacity of buyers can put upward pressure on housing prices by adding to demand, without a corresponding increase in supply. However, Help to Buy is expected to have a limited impact on the aggregate level of housing prices as support under the scheme is capped at 10,000 property purchases each year, which is a small proportion of the 530,000 residential property transactions that occurred in Australia in 2024.[44] While the scheme’s property price caps will result in the impact of Help to Buy being concentrated in the entry level section of the market, it remains a very small proportion of the total annual transactions.

While the limited scale of Help to Buy is unlikely to significantly impact housing supply, the scheme may encourage eligible buyers to choose new dwelling construction where possible by offering more support for this type of dwelling (40 per cent rather than 30 per cent). Long‑term housing affordability relies on the provision of new supply. As such, measures that encourage new dwelling supply will generally deliver a net benefit for homebuyers in the long term. Capacity constraints and labour shortages in the construction sector mean that any measure that increases demand for new dwellings in the current environment may not meaningfully increase overall supply. Rather, bringing forward demand for new dwellings when construction capacity is fully utilised may only result in price increases for all buyers.

As with the broader price impacts of the scheme, the impact on new constructions is likely to be limited, at most the scheme would be able to support the construction of 10,000 additional dwelling each year. This represents a relatively small proportion of the approximately 180,000 new dwellings completed in Australia in 2024. While the scheme property price caps mean the impact of the scheme will be concentrated in the entry level section of the market, as with the broader impact of the scheme, it is unlikely this will have a significant impact on the market. Moreover, by splitting demand between existing and new dwellings, the potential impact on aggregate dwelling prices will be further moderated by encouraging a portion of purchased dwellings to be new supply.

Impact on lenders and LMI providers

Participating lenders will assist with the delivery of Help to Buy. Importantly, Help to Buy is not mandatory for lenders and they have the choice of whether to apply to participate. For those lenders already involved in delivery of the First Home Guarantee (formerly the First Home Loan Deposit Scheme) which has been in operation since January 2020, should they elect to implement Help to Buy, they will be able to leverage from their experiences. Housing Australia will seek to align its implementation, where possible, with industry practice to minimise additional compliance and regulatory burden.

The Help to Buy scheme is targeted at homebuyers who would otherwise not be able to enter the property market, which by design should mean it is not displacing demand for private LMI products, where homebuyers would need to be able to service high loan-to-valuation ratio mortgages. That said, a proportion of Help to Buy places may go to households who may have otherwise been able to enter the market within a few years. Some of these, in turn, may have entered the market with the support of the Home Guarantee Scheme. As such, the implementation of Help to Buy would not necessarily represent foregone future demand for LMI-supported loans.

Additionally, some of the properties purchased under the scheme would have otherwise been purchased by individuals making use of LMI. However, as has been previously noted, given Help to Buy will assist in the purchase of 10,000 dwellings each year for 4 years in the context of a market that had 530,000 residential property transactions in 2024, the total impact of this is likely to be negligible.

Conclusion

Overall, the benefits of enabling 40,000 additional low- and middle-income households to achieve home ownership, including obtaining the social and economic benefits that home ownership entails, outweigh the potential disadvantages. As discussed in this section, Help to Buy is not expected to have significant impacts on established housing prices and demand in the residential construction and LMI sectors, nor impose significant additional compliance costs on participating lenders.

4.6 Regulatory Burden Estimate

Table 4.1: Regulatory burden estimate (RBE) table - Average annual regulatory costs (from status quo)

Methodology used to estimate costs to individuals

Regulatory costs to individuals from implementing the Help to Buy scheme come from the additional time it takes individuals to understand the requirements of the Help to Buy scheme during the application stage, compliance requirements associated with Housing Australia’s five yearly-reviews, and the ongoing cost of considering when to exit the scheme through refinancing or sale of the property. Additionally, participation in the scheme is entirely discretionary. Individuals will be able choose whether or not to participate in the scheme. This means individuals will be able to take into account both the potential benefits of the scheme, as well as any potential regulatory costs, before deciding to participate.

Based on feedback from industry and the Government’s experience with HGS, the following assumptions were made to determine the regulatory costs to individuals under Option 2:

• 10,000 places per year as outlined in section 3 above.
• Individuals spend 2 additional hours to understand the requirements of the scheme in the application stage, then one additional hour each year until scheme exit.
  • These additional costs each year are derived from the additional requirements of participation in the scheme above those of a standard mortgage. In particular, the 5 yearly review, and the yearly insurance checks required under the Program Directions.
• Using the Office of Impact Analysis estimate for individual costs at $37 per hour.

The total estimated average regulatory costs to individuals under Option 2 is $0.74 million in the first year of the scheme, followed by $1.11 million in the second year, $1.48 million in the third year, $1.85 million in the fourth year, before falling to $1.48 million per year for the remainder of the scheme’s operation. This results in an average yearly cost to each successful applicant of $41 a year.

Methodology used to estimate costs to businesses

Regulatory costs to lenders from implementing the scheme come from the additional time it takes to educate front-line lenders on the requirements of the Help to Buy scheme, system updates, and ongoing administrative costs to lenders through processing additional loans. Only requirements of the scheme that impose additional costs beyond those of a standard mortgage represent additional regulatory costs.

As the Scheme will be delivered by a panel of lenders selected by a competitive procurement process undertaken by Housing Australia, any regulatory costs associated with the Scheme will be discretionary. Lenders will be able to choose whether or not to participate in the Scheme, taking into account the regulatory costs associated with participation. However, as the panel of lenders has yet to be selected, it is not possible to determine the number of lenders that will participate in the Scheme on commencement, additionally this number may change over the four years that applicants will be able to enter the Scheme.

Given the uncertainty regarding the number of lenders that will participate, this assessment will consider the costs to a single lender administering all 40,000 participants. These cost estimates are based on initial general feedback from industry and the Government’s experience with HGS. As a result, the following assumptions were made to estimate the regulatory costs associated with the education of front-line lenders, including system updates:

• Total of 100 relevant employees
  • 16 hours of additional training per employee
• Total of 1000 additional hours to update systems
• Using the Office of Impact Analysis estimate for business costs at $85.17 per hour, as the precise final design and delivery of the scheme by frontline lenders has not been finalised and will be dependent on decisions by lenders and Housing Australia, it is not possible to develop a more specific business cost estimate.

Estimated average regulatory costs associated with the education of front-line lenders, including systems updates, is $0.221 million per year over the first year of the Scheme. 

The following additional assumptions were made to estimate the regulatory costs associated with ongoing administrative costs to lenders through processing Help to Buy applications.

• Additional four hours for a lender to process a Help to Buy application, including reserving a scheme place with the Scheme administrator.

Estimated average regulatory costs associated with ongoing administrative costs to lenders through processing additional loans is therefore four hours per applicant, using the OIA estimate for business cost of $85.17 per hour this represents total costs of $3.407 million per year for the first four years of the scheme.

Ongoing costs relating to existing Scheme participants for lenders compared to a standard mortgage is limited, as most ongoing compliance checks will be undertaken by Housing Australia. As such the ongoing cost to lenders is estimated at 1 hour per participant per year. This equates to ongoing costs of $0.852 million in the second year, $1.703 million in the third year, $2.555 million in the fourth year and $3.407 million per year thereafter.

This results in an estimated regulatory cost of $3.628 million for the first year of the Scheme, $4.259 million for the second year, $5.111 million for the third year, $5.963 million for the fourth year and $3.407 million thereafter.

The total estimated average regulatory costs to lenders is $4.474 million per year for the first five years of the scheme. However, as previously noted, participation by lenders in the scheme is voluntary and it is expected that lenders will only seek to offer the Help to Buy product where expected revenue outweighs any additional regulatory burden. The Help to Buy Program Directions additionally require Housing Australia to consider the competitiveness of a lender’s mortgage products as a criteria when approving entities to become participating lenders. It is expected that this will ensure participating lenders do not pass additional costs on to scheme participants.

5. Consultation

Treasury has undertaken extensive consultation with a number of commercial lenders, housing industry representatives, state and territory governments, financial regulators and other impacted stakeholders, and has drawn on this feedback to inform the detailed design of the proposal.

Consideration has been given to the interactions with other home ownership schemes, including similar state-run schemes, the Commonwealth support offered by HGS and the first home buyer grants and stamp duty concessions offered by state and territory governments.

5.1 Consultation rounds

Public consultation on the Help to Buy Program Directions

Treasury released an exposure draft version of the Help to Buy Program Directions for public consultation between 23 April 2024 and 21 May 2024. The Program Directions set out the detailed requirements of the program, including income and price caps, eligibility requirements for participants and rules surrounding contracts.

Stakeholders were given an opportunity to provide written feedback on the Program Directions, with a total of 51 written submissions on 8 key topics from a wide range of stakeholders including lenders, States and Territories, the development and construction sectors and community organisations. Treasury also met directly with 32 organisations over 20 meetings.

Public feedback on the broader design of the scheme was also provided through the Senate Economics Committee inquiry on the Help to Buy Bill 2023. Feedback from this process was considered by Government during the final policy development process for the Help to Buy Program Directions.[45]

Key themes

Stakeholder feedback focused principally on the key themes set out below. The Government considered each of these recommendations and several were incorporated into the final Program Directions. Detail on changes to the Program Directions as a result of consultation is set out in the Response and Consideration section below.

Increasing the Scheme’s income caps

Stakeholders suggested that the scheme income caps should be raised and could limit the ability of Australians to participate in the scheme and purchase a dwelling within the property price caps.

Increasing the Scheme’s property price caps

Stakeholders suggested that the Scheme property price caps should be raised as the current price caps were under median prices in several markets.

Modifying the requirements for off-the-plan dwellings

Stakeholders suggested that the requirement for off-the-plan dwellings to be near completion to qualify under the Scheme was overly restrictive and would limit the ability of participants to use off-the-plan dwellings under the Scheme.

Increase the timeframe for completion of new builds

Stakeholders suggested that the requirement that construction of a dwelling under the Scheme be completed within 24 months be extended to 36 months to provide additional certainty to participants in the Scheme.

Allow the Commonwealth to provide additional funds as necessary to ensure new builds are completed

Stakeholders suggested Housing Australia be given the ability to contribute additional funds to a new construction where costs increase, and participants and lenders are unable to provide additional funds. This would ensure new builds are completed.

Provide greater flexibility on the application of eligibility requirements

Stakeholders suggested that Housing Australia be given additional flexibility on certain eligibility requirements in the Program Directions to ensure individual circumstances could be catered to more effectively.

Increase the size or length of the Scheme

Stakeholders suggested expanding the number of places offered under the Scheme either by expanding the number provided each year and/or extending the number of years in which places would be offered to support more Australians into home ownership.

Reserve places for priority cohorts

Stakeholders suggested reserving a certain number of places each year for a variety of priority cohorts to ensure sufficient uptake of the Scheme amongst relevant target groups.

Response and Considerations

In response to feedback from stakeholders during the public consultation process, the Government has made several changes to the parameters of the scheme, to ensure participation is as simple as possible for individuals and lenders.

Increasing income caps

Stakeholders considered that the proposed income caps were overly restrictive. Given the increases in both incomes and house prices since the Government’s initial election commitment in 2022, the Government considered that increases to the scheme income caps would improve the ability of Australians to participate in the scheme.

Enabling single parents and legal guardians to access the joint income cap

As dependents may reduce the ability of individuals to access mortgage finance, allowing single parents and legal guardians to access the higher income cap for joint applicants ensure that they are not disadvantaged compared to dual income families.

Changes to support the construction of new homes

Providing Housing Australia with flexibility to assist participants to finish new constructions will assist in ensuring as many homes as possible that are started under the scheme are completed. This is important both to improving participant outcomes and protecting the Commonwealth’s financial interests, and these suggested changes were included.

Feedback that was not incorporated

Changes to scheme requirements in relation to off-the-plan dwellings were considered to present too significant a risk to participants being exposed to losses and with the potential to end up in financial hardship, so were not adopted. Also not adopted were proposals to reserve a portion of scheme places for target cohorts, as it was considered that this could limit overall uptake of the scheme.

Consultation with states and territories

Treasury engaged in detailed discussions over an extended period with states and territories to finalise the terms of the referrals of power that form the Constitutional basis of the scheme. Additionally, Treasury worked closely with state and territory housing officials on the final design of the scheme.

Consultations with other Commonwealth Departments and Agencies

Treasury consulted with a range of Commonwealth departments and agencies in developing options for Help to Buy, including Housing Australia, the Department of Finance, and the Department of the Prime Minister and Cabinet.

Further, legal advice was sought from the Australian Government Solicitor on the Constitutional basis of the scheme as well as certain parameters of the scheme design.

Targeted consultations

Feedback from lenders and other market participants indicated that the scheme should be simple to understand and provide confidence to potential buyers. In response to this feedback, the design of the scheme seeks to align with existing housing market and mortgage lending practices.

Feedback from lenders, regulators and others informed the design of the terms of the shared equity arrangements, including with regards to loan terms and the administration of the Government’s equity stake. Feedback from lenders has also informed the development of the scheme’s operational design and ongoing responsibilities of scheme participants, including the design and implementation of oversight and review mechanisms.

Contributions from commercial lenders on scheme eligibility and the number of eligible properties has guided the Government’s understanding of the scope and potential impact of the scheme on housing markets in Australia, which has in-turn guided this assessment of the potential impacts of the Help to Buy scheme.

6. Chosen option and implementation

Implementing the Help to Buy Scheme (option 2) is the preferred option. The scheme enables additional low-to middle-income households to achieve home ownership, and all the benefits home ownership entails, with limited impacts on housing prices, lenders, and the residential construction and LMI sectors.

Given the difficulties that many low- to middle-income households face in attempting to enter the property market, particularly given recent increases in dwelling prices and rising interest rates, there are strong arguments in favour of Government assistance to those households.

The barrier to home ownership created by the time it takes to save for a deposit is addressed under the status quo through the Government’s existing Home Guarantee Scheme. However, HGS does not support buyers who do not have the financial means to service a typical mortgage. 

There is currently no nation-wide scheme designed to assist low- to middle-income households to purchase a property, that they otherwise would not be able to purchase. As demonstrated, this represents a significant gap in Government support to low- and middle-income first homebuyers.

Access to secure and affordable housing confers significant economic and social benefits, including improved health and education outcomes and greater workforce participation.[46] Home ownership is linked to long term economic security, including in retirement where it acts as a store of capital.[47] Retiree homeowners generally have lower housing costs and an asset that can be drawn on in retirement which generally translates into lower dependence on Government support in retirement.[48]

6.1 Implementation details

While the broad policy was established by the Government’s election commitment, the focus of the detailed policy design and implementation process has been based on ensuring that the following objectives are met:

•                    That Housing Australia is able to effectively support 40,000 low- and middle-income Australians over four years into home ownership.

•                    That supported households are those who would genuinely not be able to buy or build a home without the Government's equity contribution. This will be assessed by Housing Australia through the financial capacity test required by the Help to Buy Program Directions.

•                    That Help to Buy support is distributed appropriately across Australia. In particular, the share of places used in regional areas, compared with those used in metro areas and capital cities. This will be achieved by allocating places to participating States according to population and requiring regular reporting from Housing Australia.

•                    That target cohorts, such as single parents, mature aged women, key workers such as teachers, nurses and social workers, First Nations Australians, and long-term renters are able to benefit from the scheme. This will be achieved by requiring regular reporting from Housing Australia.

•                    That participants are supported in repaying the Commonwealth equity share as appropriate for their financial circumstances. This has been achieved by providing for participants to repay the Commonwealth equity share according to their financial capacity, and allowing Housing Australia to take relevant personal circumstances into account during this process.

Review mechanism

The Help to Buy Act includes a statutory review provision which requires a detailed review of the effectiveness of the scheme in supporting Australians into home ownership. Additionally, Housing Australia will be required to provide regular and detailed reporting on a variety of aspects of the scheme to ensure Treasury is able to regularly assess the targeting of the scheme and any difficulties with implementation.

6.2 Implementation challenges

State uptake and Constitutional basis

As the Help to Buy scheme relies on State referrals of power for its constitutional basis, the success of the scheme will rely on all States passing adoption legislation that will enable the scheme to achieve the policy intent. To provide States with flexibility surrounding the timing of passage, the Program Directions provides for places to be reserved for all States for the first 8 months following commencement of the scheme.

Lender interest

The Help to Buy scheme will be offered as a mortgage product via a panel of lenders. To ensure the product is offered broadly and at competitive rates, it will be important for the lender panel to be sufficiently diverse. The Program Directions provide Housing Australia with the necessary flexibility to work closely with lenders to limit the additional costs associated with providing Help to Buy, ensuring that the scheme remains attractive to lenders.

Interest rate environment

The Help to Buy scheme relies on participants being able to afford a standard mortgage loan on a significant portion of the relevant property. This will be impacted by the interest rate environment and where repayment costs rise significantly the ability of the scheme to support particularly low-income Australians into home ownership may become more limited.

7. Measuring success

Robust data reporting requirements are critical in ensuring the Help to Buy scheme is achieving its principal objectives. These requirements have been put in place principally through the Housing Australia Act 2018, the Help to Buy Act 2024 and the Help to Buy Intergovernmental Agreement.

Section 44 of the Help to Buy Act 2024 requires that the Board of Housing Australia provide an annual report to the Minister in accordance with section 46 of the Public Governance, Performance and Accountability Act 2013. These reporting requirements will ensure the impact of any modifications made to the Help to Buy Program Directions are adequately scrutinised.

The Housing Australia Act 2018 also requires that a review of Housing Australia’s support for first home buyers be conducted every 12 months, which must be tabled in each House of the Parliament.

The Help to Buy Intergovernmental Agreement requires more detailed reporting be provided by Housing Australia to the States and Territories. This reporting will be released publicly and will provide detailed information on uptake numbers and the demographic and geographic breakdown of participation in the scheme. This information will allow Treasury and Housing Australia to monitor the effectiveness of the scheme and ensure it is providing appropriate support to all Australians, and particular to select target cohorts.

Section 45 of the Help to Buy Act 2024 requires that a review of the operation of the Help to Buy scheme be undertaken as soon as possible after 3 years. This statutory review will provide an additional opportunity to evaluate the effectiveness of the scheme.

7.1 Monitoring, Reporting and Evaluation

The primary policy objective of the Help to Buy scheme is to support 40,000 low- and middle-income Australian households to achieve home ownership by providing support in the form of a shared equity contribution from Housing Australia on behalf of the Commonwealth.

•                    Secondary measures to be monitored include:

•                    Supported households are those who would genuinely be unable to buy or build a home without the Government's equity contribution;

•                    Support under the Help to Buy scheme is distributed appropriately across Australia. For example, an appropriate share of places is used in regional areas, compared with those used in metro areas and capital cities;

•                    Participants are supported in repaying the Commonwealth equity share as appropriate given their financial circumstances;

•                    High proportion of participants are in stable accommodation, either remaining in a scheme property or transitioned to other stable accommodation;

•                    Homes purchased under the scheme reflect a diverse range of housing types to account for varying community needs;

•                    The proportion of houses that are new builds; and

•                    The impact of the scheme on dwelling prices.

The success of the Scheme will be assessed in relation to achievement of the primary objective, supported by consideration of these secondary measures.

Reporting Requirements

The Help to Buy Act 2024 requires:

Section 44

1.       The annual report prepared by the Board and given to the Minister under section 46 of the Public Governance, Performance and Accountability At 2013 for a period of time must include particulars of:
   1.        Any changes to the Help to Buy Program Directions during the period; and
   2.       The impact of the changes on the operation of Housing Australia

Section 45

1.       The Minister must cause a review of the operation of the Help to Buy program to be undertaken as soon as possible after the end of 3 years after the commencement of this Part.
2.       The persons undertaking the review must give the Minister a written report of the review. The report must not include:
   1.        personal information (within the meaning of the Privacy Act 26 1988); or
   2.       information that is commercially sensitive.
3.       The Minister must cause a copy of the report of the review to be tabled in each House of the Parliament within 15 sitting days of that House after the report is given to the Minister.

Similarly, the Housing Australia Act 2018 includes the following reporting requirements:

Section 57A

1.       The Minister must cause a review of Housing Australia’s activities assisting additional first home buyers to enter the housing market to be commenced within 3 months after the end of
   1.        the period beginning on the date when the first guarantee is issued by the NHFIC and ending 12 months after that date; and
   2.       each subsequent 12 month period.
2.       The persons undertaking the review must give the Minister a written report of the review within 3 months of the commencement of the review.
3.       The Minister must cause a copy of the report to be tabled in each House of the Parliament within 15 sitting days of that House after the report is given to the Minister.

Help to Buy Intergovernmental Agreement

The Help to Buy Intergovernmental Agreement requires that Housing Australia report on:

•                    the number of new participants in each 12-month period

•                    basic demographic data for those new participants (including age, gender, median income and number of Aboriginal/Torres Strait Islander participants);

•                    median shared equity contribution and median purchase price

•                    number of discharges of the Commonwealth equity investment (Help to Buy scheme exits) during each 12-month period;

•                    key trends and insights, including location of participants (with a split between metropolitan and regional

Monitoring

As the agency responsible for the delivery of Help to Buy, Housing Australia will collect data to support monitoring of the scheme. Housing Australia and Treasury will develop ongoing data sharing processes to facilitate effective monitoring practices.

In addition to Housing Australia’s internal monitoring practices, Treasury will monitor Housing Australia’s data on an ongoing basis. Treasury’s monitoring approach can be divided into 3 main categories – uptake, trends and risks. Treasury’s focus will be on ensuring; that the program meets its objectives; the settings in the program remain fit for purpose, and; the program does not expose the Commonwealth or participants to undue risk.

•                    Uptake: Uptake data may provide insight into whether the program has sufficient market coverage to support the number of places the Government wishes to support and may provide an early indicator of potential issues with program settings. An example may be demographic analysis related to cohorts, such as single parents, mature aged women, key workers such as teachers, nurses and social workers, First Nations Australians, long-term renters, and regional Australians more broadly, may also be monitored.

•                    Trends: Trends data, such as purchase price distributions or purchases by states, may be useful as an early indicator of program impacts, including by income, geography and age.

•                    Risks: Data such as defaults and hardship rate and compliance events may be used to identify emerging risks.

Evaluation

As described above, various legislative instruments require annual reviews of the Help to Buy scheme, with an additional requirement under the Help to Buy Act 2024 for a three-year review into the operation of the scheme. The annual report legislative requirements are likely to be met by one annual report, however multiple reports may be commissioned instead.

The annual HGS Trends and Insights Report provides an example of what a Help to Buy annual report may include both to fulfill the legislative requirements and to provide additional reporting. The HGS report provides information on the performance of the scheme in the previous financial year, as well as broader trends since the scheme’s initial implementation. The report specifically provides insights on the profile of scheme participants, the properties purchased under the scheme and where they are located, and how the portfolio is performing. It may be appropriate to include similar analysis in a Help to Buy annual report. These types of analyses may help provide evidence as to whether the scheme is achieving its principal objective, as well as providing reporting with respect to secondary measures of success.

In addition to the reviews required by legislation, Treasury will conduct:

•                    Reviews of the property price and income thresholds and will report to the Minister on whether changes are recommended, and

•                    Ad hoc reviews of policy parameters when identified via monitoring processes.

Treasury may consider additional evaluative tools as the scheme progresses, such as qualitative surveys to provide greater insight into participant experience.

[1] Australian Bureau of Statistics, Survey of Income and Housing, https://www.abs.gov.au/statistics/people/housing/housing-census/latest-release.

[2] Australian Bureau of Statistics, 2021 Census, https://www.abs.gov.au/statistics/people/housing/housing-census/latest-release.

[3] Australian Bureau of Statistics, Survey of Income and Housing, https://www.abs.gov.au/statistics/people/housing/housing-census/latest-release.

[4] Grattan Institute (2022), The Great Australian Nightmare report, https://grattan.edu.au/news/the-great-australian-nightmare/.

[5] Grattan Institute (2022), The Great Australian Nightmare report, https://grattan.edu.au/news/the-great-australian-nightmare/.

[6] Australian Bureau of Statistics, Survey of Income and Housing, https://www.abs.gov.au/statistics/people/housing/housing-census/latest-release.

[7] See page 4, Reserve Bank of Australia (2021), Submission to the Inquiry into Housing Affordability and Supply in Australia, https://www.aph.gov.au/Parliamentary_Business/Committees/House/Former_Committees/Tax_and_Revenue/Housingaffordability/Submissions;

Also, See Kohler and van der Merwe (2015), Long-run Trends in Housing Price Growth, https://www.rba.gov.au/publications/bulletin/2015/sep/pdf/bu-0915-3.pdf.

[8] See graph A1 in Reserve Bank of Australia (2021), Submission to the Inquiry into Housing Affordability and Supply in Australia, https://www.aph.gov.au/Parliamentary_Business/Committees/House/Former_Committees/Tax_and_Revenue/Housingaffordability/Submissions.

[9] ANZ – CoreLogic (2024), https://www.anz.com.au/content/dam/anzcomau/bluenotes/documents/ANZ_CoreLogic_%20Housing_Affordability%20Report_November-2024.pdf.

[10] Other factors, beyond a large deposit hurdle, that have contributed to declining home ownership rates, include social and demographic factors (RBA, 2015; Burke, Nygaard & Ralston, 2020), rising intergenerational income inequality (Yates, 2011), and financial innovation (RBA, 2015; Yates, 2011).

[11] ANZ – CoreLogic (2024), https://www.anz.com.au/content/dam/anzcomau/bluenotes/documents/ANZ_CoreLogic_%20Housing_Affordability%20Report_November-2024.pdf.

[12] 2024-25 Budget Paper No. 1, Statement 4: Meeting Australia’s Housing Challenge, p. 136, https://archive.budget.gov.au/2024-25/bp1/download/bp1_bs-4.pdf.

Note: Income refers to median gross disposable household income. Data is for national dwellings, reported quarterly.

[13] PropTrack Housing Affordability Report 2024, https://cdn.rea-group.com/wp-content/uploads/2024/09/21004733/PropTrack-Housing-Affordability-Report-August-2024.pdf.

[14] Reserve Bank of Australia (2025), https://www.rba.gov.au/statistics/cash-rate/.

[15] Mr Johnathan Mott, Founding Partner, Barrenjoey, Proof Committee Hansard, 16 October 2024, p. 25.

[16] Housing Australia, Home Guarantee Scheme Trends and Insights Report 2023-24, https://www.housingaustralia.gov.au/research-data-analytics/hgs-trends-and-insights-report-2023-24

[17] Housing Australia, Home Guarantee Scheme Trends and Insights Report 2023-24, https://www.housingaustralia.gov.au/research-data-analytics/hgs-trends-and-insights-report-2023-24.

[18] National Housing Finance and Investment Corporation, First Home Loan Deposit Scheme and New Home Guarantee Trends and Insights Report 2020-21, https://www.housingaustralia.gov.au/research-data-analytics/fhlds-trends-and-insights-report-2021-22.

[19] Productivity Commission (2004), First Home Ownership - Productivity Commission Inquiry Report, https://www.pc.gov.au/inquiries/completed/first-home-ownership/report/housing.pdf.

[20] Productivity Commission (2004), First Home Ownership - Productivity Commission Inquiry Report, https://www.pc.gov.au/inquiries/completed/first-home-ownership/report/housing.pdf.

[21] Treasury (2020), Retirement Income Review, https://treasury.gov.au/sites/default/files/2021-02/p2020-100554-udcomplete-report.pdf.

[22] Treasury (2021), Intergenerational Report, https://treasury.gov.au/publication/2021-intergenerational-report.

[23] Ong ViforJ, R., Graham, J., Cigdem-Bayram, M., Phelps, C. and Whelan, S. (2023) Financing first home ownership: modelling policy impacts at market and individual levels, AHURI Final Report No. 398, Australian Housing and Urban Research Institute Limited, Melbourne, https://www.ahuri.edu.au/sites/default/files/documents/2023-05/AHURI-Final-Report-398-Financing-first%20home-ownership-modelling-policy-impacts-at-market-and-individual-levels.pdf.

[24] Ong ViforJ, R., Graham, J., Cigdem-Bayram, M., Phelps, C. and Whelan, S. (2023) Financing first home ownership: modelling policy impacts at market and individual levels, AHURI Final Report No. 398, Australian Housing and Urban Research Institute Limited, Melbourne, https://www.ahuri.edu.au/sites/default/files/documents/2023-05/AHURI-Final-Report-398-Financing-first%20home-ownership-modelling-policy-impacts-at-market-and-individual-levels.pdf.

[25] Based on a 30-year mortgage term for an owner occupier, excluding stamp duty (https://helia.com.au/the-hub/calculators-estimators/lmi-fee-estimator).

[26] Ong ViforJ, R., Graham, J., Cigdem-Bayram, M., Phelps, C. and Whelan, S. (2023) Financing first home ownership: modelling policy impacts at market and individual levels, AHURI Final Report No. 398, Australian Housing and Urban Research Institute Limited, Melbourne, https://www.ahuri.edu.au/sites/default/files/documents/2023-05/AHURI-Final-Report-398-Financing-first%20home-ownership-modelling-policy-impacts-at-market-and-individual-levels.pdf.

Note: These estimates do not account for the 50,000 place cap currently legislated for HGS.

[27] Ong ViforJ, R., Graham, J., Cigdem-Bayram, M., Phelps, C. and Whelan, S. (2023) Financing first home ownership: modelling policy impacts at market and individual levels, AHURI Final Report No. 398, Australian Housing and Urban Research Institute Limited, Melbourne, https://www.ahuri.edu.au/sites/default/files/documents/2023-05/AHURI-Final-Report-398-Financing-first%20home-ownership-modelling-policy-impacts-at-market-and-individual-levels.pdf.

[28] Regional Centres are defined in the Help to Buy Program Directions s7(2).

[29] For example, see State Revenue Office Victoria, Annual Review 2023-24, https://annualreview2324.sro.vic.gov.au/delivering-for-victorians/helping-victorians-own-their-homes.

[30] Atalay, K. Edwards, R. Han, F. (2024) Lost in Transition: A Cohort Analysis of Catch-Up in Homeownership in Australia, Economic Record, Vol. 100, No. 331, December 2024, 513-532, https://onlinelibrary.wiley.com/doi/full/10.1111/1475-4932.12831.

[31] ABS Lending Indicators, December Quarter 2024, https://www.abs.gov.au/statistics/economy/finance/lending-indicators/dec-quarter-2024.

[32] Treasury estimate using CoreLogic data.

[33] Grattan Institute (2023), Opening remarks to the Senate Economics Committee inquiry into the Help to Buy Bill 2023, https://grattan.edu.au/news/pass-the-help-to-buy-bill/.

[34] Ong ViforJ, R., Graham, J., Cigdem-Bayram, M., Phelps, C. and Whelan, S. (2023) Financing first home ownership: modelling policy impacts at market and individual levels, AHURI Final Report No. 398, Australian Housing and Urban Research Institute Limited, Melbourne, https://www.ahuri.edu.au/sites/default/files/documents/2023-05/AHURI-Final-Report-398-Financing-first%20home-ownership-modelling-policy-impacts-at-market-and-individual-levels.pdf.

[35] Ong ViforJ, R., Graham, J., Cigdem-Bayram, M., Phelps, C. and Whelan, S. (2023) Financing first home ownership: modelling policy impacts at market and individual levels, AHURI Final Report No. 398, Australian Housing and Urban Research Institute Limited, Melbourne, https://www.ahuri.edu.au/sites/default/files/documents/2023-05/AHURI-Final-Report-398-Financing-first%20home-ownership-modelling-policy-impacts-at-market-and-individual-levels.pdf.

[36] Ong ViforJ, R., Graham, J., Cigdem-Bayram, M., Phelps, C. and Whelan, S. (2023) Financing first home ownership: modelling policy impacts at market and individual levels, AHURI Final Report No. 398, Australian Housing and Urban Research Institute Limited, Melbourne, https://www.ahuri.edu.au/sites/default/files/documents/2023-05/AHURI-Final-Report-398-Financing-first%20home-ownership-modelling-policy-impacts-at-market-and-individual-levels.pdf.

[37] State Revenue Office Victoria, Annual Review 2023-24, https://annualreview2324.sro.vic.gov.au/delivering-for-victorians/helping-victorians-own-their-homes.

[38] Canada Mortgage and Housing Corporation, https://www.cmhc-schl.gc.ca/professionals/project-funding-and-mortgage-financing/funding-programs/all-funding-programs/shared-equity-mortgage-providers-fund

[39] House of Commons Library (2021), Shared ownership (England): the fourth tenure?, https://commonslibrary.parliament.uk/research-briefings/cbp-8828/.

[40] CoreLogic Quarterly Rental Review Report, Q4 2024, https://www.corelogic.com.au/__data/assets/pdf_file/0027/25569/2501-CoreLogic-RentalReview-DecQtr-Report-FINAL.pdf.

[41] CoreLogic Hedonic Home Value Index, March 2025, https://www.corelogic.com.au/__data/assets/pdf_file/0015/26214/CoreLogic-HVI-March-2025.pdf.

[42] Productivity Commission (2004), First Home Ownership - Productivity Commission Inquiry Report, https://www.pc.gov.au/inquiries/completed/first-home-ownership/report/housing.pdf.

[43] Treasury (2020), Retirement Income Review, https://treasury.gov.au/sites/default/files/2021-02/p2020-100554-udcomplete-report.pdf; Treasury (2021), Intergenerational Report, https://treasury.gov.au/publication/2021-intergenerational-report.

[44] Grattan Institute (2023), Opening remarks to the Senate Economics Committee inquiry into the Help to Buy Bill 2023, https://grattan.edu.au/news/pass-the-help-to-buy-bill/; ABS Lending Indicators, December Quarter 2024, https://www.abs.gov.au/statistics/economy/finance/lending-indicators/dec-quarter-2024.

[45] Senate Economics Legislation Committee Inquiry into the Help to Buy Bill 2023 and the Help to Buy (Consequential Provisions) Bill 2023 [Provisions], https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Economics/HelptoBuyBills2023/Submissions.

[46] Productivity Commission (2004), First Home Ownership - Productivity Commission Inquiry Report, https://www.pc.gov.au/inquiries/completed/first-home-ownership/report/housing.pdf.

[47] Treasury (2020), Retirement Income Review, https://treasury.gov.au/sites/default/files/2021-02/p2020-100554-udcomplete-report.pdf. The Retirement Income Review found that “the home is the most important component of voluntary savings and is an important factor influencing retirement outcomes and how people feel about retirement.”

[48] Treasury (2020), Intergenerational Report,  https://treasury.gov.au/publication/2021-intergenerational-report.