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Help To Buy Scheme legislation introduced

Article published on: 30-11-2023

Further to a media release on 27 November, the Government has introduced legislation to give effect to the ‘Help to Buy Scheme’, which was originally announced as part of the 2022 Federal Election campaign.

The Bill has been referred to the Economics Legislation Committee. A report is expected by 15 April 2024.

The Help to Buy Scheme is a shared equity program which will help up to 40,000 (up to 10,000 a year) low and middle-income families to purchase a home with as little as a 2% deposit. While States will need to pass their own legislation to enable the Scheme to operate in their respective jurisdictions, all States have agreed at National Cabinet to legislate the Scheme to run nationally from next year. The Scheme will be administered and monitored by Housing Australia (previously NHFIC), who also administer the various Home Guarantee Schemes.

How Help to Buy will work

The legislation introduced to Parliament provides authority to Housing Australia to implement and administer the Scheme, and details the way in which States will become participating States. More information will follow regarding specific eligibility requirements and rules. The Scheme will not limit access to other State-based support measures, such as First Homebuyer Grants, or the First Home Super Saver Scheme. Applications will be made via an approved lender at the time of the home loan application. The Commonwealth’s equity will be secured by a second mortgage or other enforceable right against the property. The Commonwealth’s contribution towards the purchase of the property will be up to:

40% for new homes, and
30% for existing homes.

Under the Scheme, eligible home buyers and Housing Australia (on behalf of the Commonwealth) will enter a contract which will set out the Government’s:

payment for a portion of the purchase price for a residential property, and
entitlement to a return on this contribution, based on the value of the relevant property.

The Government will have security over the relevant property through a mortgage or right. We will provide more information about eligibility rules and the operation of the scheme once it becomes known.

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