What the re-elected Labor government means for Victorians

Teleisha Thomas

May 2025

Housing policy was a defining issue in the 2025 federal election, and Labor’s return to government signals an ongoing focus on affordability and access to home ownership.
The Albanese Government will prioritise direct investment in housing, shared equity schemes, and low-deposit loans for first-home buyers. Here is a closer look at what a re-elected Labor government means for Victoria’s residential property market.

Expanded housing supply for first-home buyers
Labor has pledged $10 billion to build 100,000 homes exclusively for first-home buyers over the next decade.
The initiative relies on fast-tracked land release and planning approvals in partnership with state governments.
It aims to boost the supply of affordable housing in growth corridors, ease price pressure in the entry-level market, and help younger buyers enter the market sooner.

Broader access to low-deposit loans
The government will widen eligibility for its 5% deposit home loan scheme, which exempts buyers from paying lenders mortgage insurance (LMI).
Currently income-tested, the scheme will be made available to all first-home buyers, significantly reducing upfront costs and making it easier for new buyers to secure a foothold in the property market.

1 Cawkwell 7 — **More social and affordable housing**
The Albanese Government will continue rolling out the Housing Australia Future Fund, a $10 billion program to deliver 55,000 social and affordable homes over five years. The fund targets low-income earners, people experiencing homelessness, and other vulnerable groups. In the broader market, this additional supply could ease pressure on lower-cost rentals by reducing demand at the bottom end of the private rental sector.

Shared equity for lower-income buyers
Labor plans to expand its Help-to-Buy scheme, allowing eligible first-home buyers to purchase a property with the government contributing up to 40% of the home’s value in exchange for an equity stake.
Participants can buy out the government’s share over time.
This initiative lowers both upfront costs and monthly repayments, improving access to home ownership for lower-income earners.

Temporary ban on foreign purchases
Labor has proposed a two-year ban on foreign investors and temporary residents buying existing residential properties.

This measure is intended to reduce speculative investment, ease market pressure, and improve access for local buyers.

Greater crossbench influence
With more independents and minor parties elected to Parliament, Labor may need crossbench support to pass its key housing reforms.
This shift gives smaller parties and independents greater leverage to shape the legislation, and negotiations could result in policy amendments or delayed implementation.
It also means housing is likely to remain front and centre in parliamentary debate throughout this term of government.