Income and property price caps increased ahead of federal budget
The Australian government has expanded eligibility for its Help to Buy scheme, lifting income thresholds and increasing property price caps in a move expected to draw in thousands more potential first-home buyers.
Initially announced in 2022, the scheme allows eligible Australians to enter the housing market with as little as a 2% deposit, supported by a government equity contribution of up to 40%. Up to 10,000 places will be available annually over four years. To qualify, applicants must be at least 18 years old and must not currently own property in Australia or overseas.
Income limits have now been raised to broaden access. Individuals earning up to $100,000 annually – up from $90,000 – are now eligible. The cap for couples has risen from $120,000 to $160,000. Single parents are also assessed against the $160,000 threshold.
New figures from the Australian Bureau of Statistics show the average full-time wage sits just under $103,000 per year, meaning a larger share of the workforce now falls within the scheme’s eligibility.
The Help to Buy scheme’s expansion comes just days before the government’s 2025 federal budget is due. In addition to the income changes, the government has raised property price caps, tailoring them to local market conditions across the states and territories.
Buyers in Sydney and parts of regional New South Wales can now purchase properties up to $1.3 million. The cap in Melbourne has been set at $950,000, while Brisbane and the ACT both have a $1 million limit. Perth and Adelaide have been set at $850,000 and $900,000, respectively.
While the broader eligibility will likely increase demand, it also adds to the program’s overall cost. The government’s equity contribution is projected to rise by $800 million, bringing the total investment to $6.3 billion.
“We’re tackling the housing crisis head-on by building more homes, using new technologies, and making it easier for Australians to buy them,” said housing minister Clare O’Neil (pictured above).
"I’ve got a pretty straight-forward goal here – to make sure that ordinary, working class Australians can buy a home of their own. That’s why we’re expanding Help to Buy so that most first home buyers are eligible.”
The scheme is expected to begin accepting applications later this year, with 40,000 buyers expected to benefit by the end of its four-year rollout..
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