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Details of the federal government’s shared equity scheme – including eligibility criteria and region-specific price caps – have been made public.
While the legislation to bring the program into practice is still winding its way through Parliament, the federal government is moving ahead with nailing down how the scheme will operate.
It’s requesting public feedback on a draft of the Help to Buy Program Directions, which outlines elements like eligibility criteria for applicants, how much equity the government will contribute based on the type of housing, and the maximum purchase price for a dwelling depending on its location.
While the details are open for discussion, Housing Minister Julie Collins affirmed that the program still intends to cut the cost of home ownership by up to 40 per cent for purchasers of a new home, and 30 per cent for buyers of an existing home. It is still intended to limit the number of applicants to 40,000 over four years.
The price caps currently range from $400,000 for buyers intending to purchase in Christmas Island and the Cocos (Keeling) Islands, to $950,000 for Sydneysiders. As currently proposed, participants of the scheme must make the property their principal place of residence.
The draft also outlines that Housing Australia will undertake five yearly reviews to ensure that participants of the scheme are complying with their obligations, and that the government’s investment is being maintained. This includes how the body intends to require repayment and terminate the arrangement if the applicants are found to no longer be eligible or have breached the agreement.
In releasing the draft Program Directions, Collins asserted that the program has the potential to be “life-changing, bringing home ownership back into reach for thousands of Australians, particularly renters”.
“The Liberals and Greens should stop standing in the way of Help to Buy and support it in the Senate,” she added.
The Greens are asking that the government make significant changes to negative gearing and the capital gains tax discount in return for the party’s support of the bill.
ABOUT THE AUTHOR
Juliet Helmke
Based in Sydney, Juliet Helmke has a broad range of reporting and editorial experience across the areas of business, technology, entertainment and the arts. She was formerly Senior Editor at The New York Observer.
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