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April 13, 2025
Sunday 13 April 2025
Oscar Godsell
Sky News
Opposition Leader Peter Dutton has planned to allow first-time buyers of newly built homes to deduct mortgage interest payments from their income taxes in a new election promise.
Opposition Leader Peter Dutton has planned to allow first-time buyers of newly built homes to deduct mortgage interest payments from their income taxes.
In a policy aimed at improving housing accessibility, Mr Dutton's proposal would see an average family benefit by approximately $11,000 annually, or $55,000 over five years.
The scheme would be limited to the first $650,000 of a mortgage on new homes, and would be means tested at $175,000 for singles and $250,000 for couples.
Shadow home affairs Minister James Paterson told Sky News Sunday Agenda that the Coalition has a broad approach to housing affordability.
“We've outlined a lot in this space already. We're going to take pressure off demand by reducing migration and banning foreign investors from buying homes for two years,” he said.
“We're going to reform the building industry, which Labor cannot do, by deregistering the CFMEU and introducing new laws to deal with the lawlessness and corruption that has flourished in that industry under Labor's watch."
Mr Paterson also highlighted the Coalition's commitment to infrastructure through its $5 billion infrastructure fund to unlock private development of about 500,000 homes.
The Coalition has also said it would allow first home buyers to access their own superannuation accounts to meet deposit requirements.
In contrast, the Labor Party has promised $10 billion to build 100,000 homes exclusively for first-time buyers.
This has been coupled with a guarantee to cover the remainder of the mortgage for those who can put down at least a five per cent deposit.
Prime Minister Anthony Albanese’s plan would also eliminate the need for lenders mortgage insurance, which is typically required when the deposit is under 20 per cent.
“This is more failed policy from a government that hasn't delivered a single home under its signature housing policies,” Mr Paterson said in response.
“The Housing Australia Future Fund hasn't delivered one new home, despite promising to do so.
“And it was reported yesterday will need a taxpayer-funded bailout just to stay solvent. I mean, this is how bad things have got on this government's watch.”
The housing policies from both major parties are expected to dominate much of the political debate heading into the election on May 3.
The latest Newspoll revealed the Albanese-led party ahead 52-48, up one point, which mirrors the 2022 election result when Labor won majority government.
The remaining question for many observers is whether the party can secure another majority or will need to govern in minority.
Voting opens on Tuesday ahead of the May 3 election.