Labor has reactivated its Help to Buy scheme, which means you can move into a “home” with just a 2 per cent deposit.

It is what’s known as a “shared equity scheme” and was part of the 2022 federal government election commitment.

It means you can co-buy a home, with the government offering a helping hand.

The scheme will give people an “equity contribution” of up to 40 per cent of the cost of a new home, or 30 per cent for existing homes.

It can be a house, unit or townhouse.

The buyer won’t need to pay rent on the stake owned by the government.

But you will have to pay a component of any capital gain back to the government.

The capital gains will be calculated in reference to the size of the government’s equity share in the property.

For example, if the government holds a 30 per cent share in the property, then it would be entitled to 30 per cent of the proceeds of sale, which includes 30 per cent of any capital gains earned.

Seems like an interesting idea, though I get the feeling this is just going to keep inflating property prices right? It’s not doing anything to address the increased cost of housing, just helping more people enter the overpriced market.

  • AutoTL;DR@lemmings.worldB
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    1 year ago

    This is the best summary I could come up with:


    The scheme will run for four years, beginning some time in 2024, and support 40,000 low- and middle-income families to finally secure a place to call home.

    Making the announcement this week at the Labor Party’s national conference in Brisbane, Prime Minister Anthony Albanese said:

    Director of Economic Research at REA Group Cameron Kusher said: “Taxpayer-wise, it is basically a free loan that is being given to help people get into the market.”

    Cameron Kusher said there’s a risk: if property prices drop, the purchaser could end up owing the government more than what they borrowed.

    If your income exceeds the annual threshold for two years in a row, you may need to repay the government’s contribution — in part or in full.

    All Australian states and territories agreed at the cabinet meeting to pass legislation this year, to implement the scheme.


    I’m a bot and I’m open source!