‘Taking a cut’: Scott Morrison slams Anthony Albanese’s housing plan

The Prime Minister has slammed Anthony Albanese’s $329m home ownership pitch to voters, saying it will allow a Labor government to ‘take a cut’.

Scott Morrison has accused Anthony Albanese of trying to “take a cut” from prospective homebuyers under a radical $329m plan that would allow the government to purchase a slice of people’s property.

Labor argues its “Help to Buy” scheme will get more low-to-middle income earners into the market with a smaller deposit and mortgage.

But the Prime Minister suggested it was a money-making exercise.

“Our plan is for Australians to own their own home, not for the government and Anthony Albanese to own your home,” Mr Morrison told reporters on Sunday.

“Under Mr Albanese’s plans, he’s taking a cut.”

The Prime Minister added Labor was “looking to make money” out of the proposed scheme.

“They will have equity in your home ... I don’t have a plan to make money off of people buying their own home,” he said.

“Quite the opposite – I want them to own their own home.”

Mr Morrison said while housing affordability was a “tough issue”, in the past three years his government’s various programs had helped 300,000 Australians into their own home.

“Those policies, despite rising house prices, have been incredibly effective,” he said.

“On every single one of those occasions, it’s those Australians who own their home – not the government.”

Labor says it’s scheme would give people looking to build their first homes a leg up.

Mr Albanese will expand on his proposed scheme at Labor’s campaign launch in Perth on Sunday.

Under the plan, a Labor government would provide an “equity contribution” of up to 40 per cent of the price of a new home and 30 per cent for existing dwellings.

The owner would not have to pay rent on the government’s share of the property.

The government would recoup its share of the investment when the house was eventually sold.

Owners would also be able to buy further stakes during their ownership period.

“After nine long years in government, housing affordability has only got worse under the Liberal-National government,” Mr Albanese said.

“Help to Buy is part of Labor’s plan to tackle the housing crisis.”

The proposed scheme is similar to a Grattan Institute pitch from earlier this year.

To qualify, the buyer would need just two per cent deposit and be eligible for a loan for the rest of the purchase price.

It would be open to individuals on up to $90,000-per-annum and couples with an income of $120,000 per year.

There would also be a cap on the value of the property which could be purchased under the scheme – up to $900,000 in Sydney, $850,000 in Melbourne, $650,000 in Brisbane and less for other states and regional areas.

The policy is aimed at young people who have been locked out of home ownership due to skyrocketing house prices amid low interest rates.

From 1981 to 2016, home ownership rates among 24 to 34-year-olds fell from 60 per cent to 45 per cent, according to census figures.

The Morrison government earlier this year expanded its First Home Guarantee scheme, under which prospective home buyers can purchase a property with as little as a five per cent deposit.

Labor leader Anthony Albanese has launched a radical policy aimed at struggling first home buyers.

Earlier on Sunday, Mr Albanese took aim at Mr Morrison for likening West Australian to cave people over hard border closures.

Mr Morrison sparked outrage in WA when he was pushing for states to stick to the national reopening plan in August last year.

“Now it’s like that movie The Croods,” he told the Today show, in reference to the children’s film about cavemen.

“Some wanted to stay in the cave and the young girl wanted to deal with the challenges of living in a different world. Covid is a different world … we can’t stay in the cave.”

While the Prime Minister has since denied the comment was specifically about WA, Mr Albanese is refusing to let it go.

“Western Australians often feel, understandably, that the east coast doesn’t give them respect that they deserve,” he told Sky News, which is available to stream on Flash, on Sunday.

“Over the last couple of years if you look at how the Australian economy has kept going, Western Australia and Queensland in particular have done exceptionally well to keep people in jobs.

“Here in WA when the Prime Minister was referring to cave people they were scratching their heads.”

Prime Minister Scott Morrison’s reference to cave people ruffled feathers in WA where Premier Mark McGowan’s tough border stance was popular. Picture: AAP Image/Richard Wainwright

The Labor leader said people were going to work, school, dining out and drinking in pubs when Mr Morrison made the comment.

Attorney-General Michaelia Cash – the most senior WA minister in the Morrison government – hit back at Mr Albanese’s pitch to voters in her home state.

“Oh please. The mere fact that you touch down on Western Australian soil does not mean that you support Western Australia,” she told Sky.

“The fact that Anthony Albanese is prepared to campaign with Kevin Rudd – neither of them are friends of Western Australia.”

Senator Cash pointed to the previous Labor government’s super profits tax on miners and infrastructure funding as reasons West Australians should be wary of Mr Albanese.