How Election 2025 Could Open New Doors for First Home Buyers?

With Australians heading to the polls on May 3, housing affordability is front and centre, and both major parties are zeroing in on first home buyers in their election pitches.

The message is loud and clear: owning your first home is tougher, and both Labor and the Coalition say they’ve got a plan to fix it.

But how do their plans stack up? And what could it mean for you if you're hoping to get your foot in the property market?

Let’s break it down.



Labor’s Vision: More homes, fewer barriers

Housing demand is expected to outstrip supply by 163,400 dwellings over the next seven years. Labor’s answer? Build more homes.

They’re promising a $10 billion investment to construct up to 100,000 new homes dedicated solely to first home buyers. That’s a bold move, aimed squarely at long-term supply.

Labor also wants to supercharge the First Home Guarantee scheme, which lets first home buyers purchase a property with just a 5% deposit and no lenders' mortgage insurance (LMI)—a massive cost saver.

Currently, there's an income cap to access the scheme. But under Labor’s plan, that cap would be scrapped, opening up access to buyers of all income levels. They’re also planning to lift the property price caps, so buyers aren’t as restricted by location or property type.

Another major promise is the expansion of Labor’s Help to Buy scheme, which allows the government to chip in up to 40% of the purchase price. You’d then have the option to buy out the government’s share later.

The Coalition’s Offer– a tax deduction on home loan interest

The Coalition’s focus is different. Rather than helping with deposits or supply, they’re offering tax perks and flexibility for first home buyers.

Their headline policy? A new First Home Buyer Mortgage Deductibility scheme.

This would allow first home buyers to claim their mortgage interest as a tax deduction—but only under certain conditions:

• 
  The property must be newly built or under construction.
• The deduction applies to the first $650,000 of the loan.
• It’s limited to the first five years of the loan term.
• And it's only available to individuals earning up to $175,000, or couples earning up to $250,000.

Like Labor, the Coalition is also planning to tweak the First Home Guarantee scheme, increasing both the income eligibility and property price thresholds.

But they’re going a step further by removing the annual cap on the number of people who can access the scheme.

Finally, one of their more eye-catching proposals is letting first home buyers tap into their superannuation. Up to $50,000 could be withdrawn and put toward a home deposit—but that amount must be paid back into your superannuation account when you eventually sell the property.

What does this mean for you?

No matter which party wins the election, some big changes are coming for first home buyers.

But with so many schemes, limits, and conditions to consider, it helps to have expert guidance on your side.

That’s where Osinski Finance can help.

Whether you're looking into becoming a first home buyer exploring low deposit home loans, or considering refinancing your home loan, we’re here to guide you through it all with personalised advice and support.

Get in touch with us today and let’s explore how you can take that first step toward home ownership, whoever takes office after May 3.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.