‘Help to buy’ housing plan: $7 billion figure Anthony Albanese doesn’t want to admit

As the ALP prepares to reveal its full election costings, Anthony Albanese has tried to dodge the big price Australia will need to borrow for his housing plan.

EXCLUSIVE

It’s the one question Labor leader Anthony Albanese isn’t keen to answer - how much does he need to borrow to pay for the “help to buy” housing plan to buy a 40 per cent stake in thousands of low income families’ homes.

During a 30-minute interview exclusive interview with news.com.au’s podcast I’ve Got News For You, the man who could be Australia’s next Prime Minister by Sunday described the money as “an investment” that is likely to see the government make money - if property prices rise.

But he’s not keen to say the figure that will be revealed in Labor’s costings, to be released on Thursday.

Those official costings will reveal that the help to buy scheme will secure the Commonwealth a $7.28 billion stake in the housing market by 2025-26.

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Anthony Albanese said his ‘help to buy’ housing plan was ‘an investment’ in Australia’s future. Picture: Lisa Maree Williams/Getty Images

While the policy has been described as “costing” the budget $389 billion, Mr Albanese confirmed it would involve significant borrowings.

The figure previously nominated as the cost to the budget involves administrative costs to run the scheme and does not include the borrowings.

“It’s an investment. We are talking about shared equity which is shared ownership,’’ he said.

“And it’s one that has operated effectively, both here in Australia and internationally. So this is a very positive measure.”

Mr Albanese declined repeated requests to name the borrowings required. But news.com.au has confirmed the figure is $7.28 billion.

That’s how much Australians will need to borrow to buy the homes.

“These programs make money. In Western Australia, it’s been very successful. In Victoria, it’s been successful. This operates in the United Kingdom. It operated in Canada.”

Mr Albanese said the contrast with Prime Minister Scott Morrison’s plan to allow workers to raid their own super was clear.

“They now have a plan to not only cut real wages, but also to cut superannuation, which will leave people worse off,” Mr Albanese said.

“That’s a choice that people have to make at this election.”

Scott Morrison’s plan to improve housing affordability would see people withdrawing part of their super to bolster their home deposit. Picture: Asanka Ratnayake/Getty Images

Under Mr Morrison’s plan, there are no income limits that apply if you wish to raid your super piggy bank.

The only limit is you can only take out 40 per cent or up to $50,000 – whichever is the lesser amount.

That means you would need $125,000 in super to take out $50,000 – something many Australians don’t have until they are in their early 40s.

By contrast, over the next four years Labor’s scheme would be limited to 40,000 families with income caps, meaning it will only be available to singles earning up to $90,000 a year and couples earning $120,000.

For existing homes, the government would cover up to 30 per cent of the value and for new homes, up to 40 per cent.

This means the government would cover up to $380,000 of the value of a property, depending on where people live, and reduce their mortgage by the same amount.

Listen to Samantha Maiden’s full interview with Anthony Albanese tomorrow on news.com.au’s daily podcast I’ve Got News For You

Mr Albanese said other policy measures would also deliver more affordable housing for essential workers.

In the program’s first five years, Labor says it will build 20,000 social housing properties.

Of these, 4000 would be allocated to women and children fleeing domestic violence, and low-income older women at risk of homelessness.

Mr Albanese said a further 10,000 affordable housing properties would be for “frontline workers” who he described as “the heroes of the pandemic, those nurses, police, emergency service workers and cleaners that are keeping us safe”.

“Well, our policy includes housing Australia Future Fund, and that will assist 20,000 additional social housing dwellings,’’ he said.

“Affordable housing units for essential workers, additional funding for emergency housing.

“And then we have on top of the government’s existing schemes, our Help to Buy scheme that will make a difference for 10,000 people. It is a very positive scheme aimed at lower middle income earners.”

The issue of affordable housing has become a big issue in the election promises made by both parties. Picture: NCA NewsWire/Joel Carrett

With less than a week until polling day, Mr Albanese said he was campaigning to win a majority and was confident he could win.

“I’m certainly not taking anything for granted,’’ he said.

“My job is to ensure that Labor maximises the vote, I am committed to working for a majority Labor government because of the stability that that brings.

“So I’ll be campaigning to get at least 76 Labor members of the House of Representatives elected next Saturday.”

Labor’s debt and deficits are expected to be higher than the Coalition’s when Labor’s costings are released on Thursday.

Speaking in Queensland, Mr Chalmers said Labor’s election commitments would cost the budget a “fraction” of what the Coalition has “rorted and wasted over almost a decade in office”.

“The most important thing here is not whether deficits are a couple of million dollars each year better or worse than what the government is proposing,” Mr Chalmers said.

“What matters most is the quality of the investments. We’d be inheriting $1 trillion in debt and no plan to grow the economy the right way.”