Albanese, Dutton each roll out $10b commitments
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The news: Anthony Albanese and Peter Dutton will each make separate $10 billion commitments on Sunday as they launch their election campaigns on opposite sides of the country, with Labor promising first home buyers a 5% housing deposit and the Coalition unveiling a one-off tax offset of up to $1200.
The details: Launching the Labor campaign in Perth, Albanese will announce a commitment of $10 billion to build up to 100,000 new properties for first-home buyers and guarantee up to 5% of deposits for all Australians trying to get into their first home.
Dutton, who will launch the Coalition campaign in western Sydney, will announce a policy to Australians earning up to $144,000 a tax offset of up to $1200 when they lodge their tax return for the upcoming financial year. The proposal, dubbed the “cost of living tax offset", is modelled on the low and middle income tax offset (LMITO) provided under the former Coalition government between 2019 and 2022.
About 85% of taxpayers will benefit from the offset.
The full $1200 will be available to workers earning between $48,000 and $104,000, roughly half of all taxpayers. The policy will cost $10 billion.
Meanwhile, Albanese will announce a re-elected Labor government would give all first home buyers access to 5% deposit guarantees.
It is a significant expansion of an existing Home Guarantee Scheme which has strict income and property price caps.
Under the existing scheme, 15% of the property’s value is guaranteed by the federal government. Now Labor is vowing to make every first home buyer eligible to buy with a 5% deposit guaranteed with no income caps or caps on places.
Property price limits will be raised to average house prices in each city and region.
Changes will be implemented on 1 January 2026, following further consultation with industry.
Separately, Albanese will announce a $10 billion commitment to build up to 100,000 homes for first home buyers by working with states and industry partners to identify suitable projects, including use of government land that is vacant or underutilised. Labor says states and territories will be in incentivise to fast-track land release, upzoning and planning approvals.
The $10 billion investment will be made up of $2 billion in grants and $8 billion in zero-interest loans or equity investments primarily to states and territories, who will be required to match the $2 billion grant contribution.
Construction on the first projects will start in 2026-27, with buyers moving in from 2027-28.
What they said: "I want to help young people and first home buyers achieve the dream of home ownership,” Albanese said.
“When a young person saves a 5 per cent deposit, my government will guarantee the rest with their bank.
“This will help people buy their first home faster, without paying the burden of Lenders Mortgage Insurance.
"We will also invest $10 billion to build 100,000 homes to be set aside and kept affordable for first home buyers.
"We have a plan to get more Australians into their own homes – this is in stark contrast to Peter Dutton who wants to cut billions from housing.”
Peter Dutton said: “Australians are hurting – and Anthony Albanese isn’t listening,” Dutton said. “The Coalition is stepping up with a plan that provides real help.
“Families are getting smashed under the Albanese Government, and they need help now.
“A Coalition government will first provide help to families by cutting fuel by 25 cents a litre - a saving of about $1,500 a year for a two car family. And then by giving back up to $2,400 per family whilst we clean up Labor’s mess. Labor’s 70 cents a day is a bandaid on a bullet wound.
“Our Cost of Living Tax Offset will put more money back into the pockets of millions of Australians at a time when they’re being crushed by skyrocketing grocery bills, rent, mortgage repayments and insurance costs.
“Labor’s so-called tax cut – just 70 cents a day – is a slap in the face to hardworking Australians and an insult to families trying to make ends meet.
“It shows just how out of touch Mr Albanese really is.”
The sources: Labor Party, Coalition campaign, Sydney Morning Herald
