Labor passes shared equity Help To Buy housing scheme in senate after Greens break deadlock

Labor has passed its signature shared equity scheme which will help up to 40,000 home buyers get into the property market with a lower upfront deposit and mortgage repayments, following a lengthy Senate stand off with the Greens.

Originally committed as an election promise in 2022, the Help To Buy Bill finally passed the Senate on Tuesday 36 ayes to 29 noes, after the minor party guaranteed safe passage of the bill.

The Bill will now go back to the House for a final vote and is expected to pass as Labor holds a majority.

While states and territories will need to pass their own legislation before the scheme commences, the policy will allow 10,000 first homebuyers a year over four years to buy a home with the Commonwealth stumping in 40 per cent of the purchase price for new homes and 30 per cent for existing homes.

Buyers must buy the home as owner-occupiers, and have a yearly income of less than $90,000 for individuals or $120,000 for couples.

Each state will also have individual price caps across metro and regional areas, and rural zones, which will range between $450,000 to $950,000 for homes in Sydney and its regional areas.

Labor’s Build to Rent Bill, which gives tax incentives to property developers to encourage the construction of rental-only dwellings will be voted on later today.

Both Bills were previously stalled by the Greens, who hamstrung the government in an attempt to reduce capital gains tax benefits and negative gearing for property investors, however the minor party conceded their stalemate on Monday.

Greens Leader Adam Bandt said the minor party had “pushed” as far it could get, but said they “couldn’t get there this time”.

“We’ll wave the housing bills through and take the fight to the next election, where we’ll keep Peter Dutton out and then push Labor to act on unlimited rent rises and tax handouts to wealthy property investors,” he said.

Housing Minister Clare O’Neil however accused the Greens of “relentless politicking” after their multiple campaigns to delay passing the Bills.

“Delay is costly and the Greens need to understand that,” she said.

“I’m glad they have finally seen the light but it doesn’t excuse the fact they have played politics for Two-and-a-half years, and the net effect of the Greens in this term of parliament is to delay action on housing and cause greater pains for Australians who are in housing distress.

More to come