Labor conference: Anthony Albanese reveals shared equity scheme

Anthony Albanese has revealed Labor’s help-to-buy scheme will begin rolling out from 2024, two years after it was promised at the election, but is facing a potential battle to win support.

Anthony Albanese at the ALP national conference in Brisbane on Thursday. Picture: Dan Peled / NCA NewsWire

Anthony Albanese has outlined a plan to roll out the help-to-buy scheme from 2024 – two years after it was promised at the election – but is facing a potential battle to win support in parliament for the shared equity proposal.

The announcement was made at the national conference on Thursday, where a much-anticipated push from the powerful CFMEU for a super profits tax to fund thousands of affordable homes was watered down to an amendment ultimately implemented in the party’s platform.

Labor’s “shared equity scheme” will see the government essentially co-purchase properties with first-home buyers, contributing up to 40 per cent equity to allow those struggling to enter the property market to do so with deposits as little as 2 per cent.

The Prime Minister told the national conference that following lengthy negotiations with states and territories, the scheme was ready to be launched in the first half of next year.

“Our government will step up and put in our share, opening the door of home ownership to tens of thousands of hardworking people,” he said. “We are the party of the great Australian dream – and we are going to keep that dream in reach for the next generation of Australians.”

Mr Albanese’s announcement followed plans out of national cabinet on Wednesday for an additional 1.2 million homes to be built across the country over five years in an effort to boost supply.

The CFMEU predicted earlier this year a shortfall of 750,000 social and affordable homes in Australia, arguing the best way to quickly fill this hole was through a super profits tax that would generate half a trillion dollars.

Despite confirming on Wednesday the union would seek to move a motion for a super profits tax at the conference, the final wording of the CFMEU amendment was vague,

The platform will now bind Labor to “a progressive and sustainable tax system, including corporate tax reform”.

“This is not everything that the union is demanding … but it is a very significant first step,” CFMEU national secretary Zach Smith said.

Despite the absence of a super profits tax motion – which The Australian understands was expected to be voted down – the union is viewing the inclusion of “corporate tax reform” in the platform as a significant win.

CFMEU national secretary Zach Smith. Picture: NCA NewsWire / Gary Ramage

Mr Albanese’s revelation that the help-to-buy scheme would launch next year prompted backlash from the opposition and crossbench, which raised questions over why the policy had not been canvassed since the election.

The Australian understands the scheme first needed the approval of the states and may still require state and territory legislation to implement before it heads to federal parliament.

Opposition housing spokesman Michael Sukkar said he had expected the help-to-buy scheme to begin earlier this year and had “no explanation” as to why the policy was so late. “Labor’s housing crisis is getting worse by the day and this is another example of their lack of urgency in addressing housing affordability,” he said.

Mr Sukkar also raised concerns with challenges such as the decline in dwelling approvals and the booming population being left largely unaddressed, bringing into question whether the Coalition would support the legislation.

“While first-home buyers are down, new home starts are down and dwelling approvals are down, Labor wants to bring in 1.5 million migrants with no idea of where they will live,” he said.

Greens leader Adam Bandt also criticised the “reheated election policy” and said there were too few places in the scheme. “These new places being offered by Labor will be rarer than Willy Wonka golden tickets,” he said.