In this blog/video we discuss the upcoming Federal Election housing polices promised by both the Liberal and Labor Governments.

From promises for first home buyers being able to access their superannuation early to purchasing a property, to making first home buyers mortgage interest tax deductible, to $10 billion dollars allocated for 100,000 new homes for first home buyers, we unpack it all....

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Hi everybody - George Sourris, Empire Legal.

Today's topic: Federal Election 2025: What you need to know about proposed Housing Policy

Yes, it's 6:00am and it's freezing cold this morning. My social media and marketing manager is sick, so shout out to my wife for holding the camera this morning.

Alright. Housing is front and center in the lead up to the 2025 Federal Election. Yes, the democracy sausages are only two weekends away, and with both major parties promising big reforms for first home buyers, real estate in Queensland is right in the spotlight. But as any experienced property professional knows, policy announcements don't just shift headlines. They shift by behavior, market demand, and the pace and pressure of conveyancing.

Here's what you need to know about how Labor and the Coalition are approaching the housing crisis and what it could mean for you and your clients, especially here in Queensland.

Labor's approach.

Deposit help and supply boost. The Labor government is doubling down on a two-prong strategy.

Number one - eligible first home buyers can purchase a property with as little as a 5% deposit, without needing to pay Lender's Mortgage Insurance (LMI). So, the government acts as guarantor for up to 15% of the property's value. Places in the scheme are limited and often fill quickly. 

Number two - a $10 billion Housing Australia Future Fund. Labor is pledging $10 billion towards building 100,000 new homes over 8 years, exclusively available to first home buyers, by way of grants to States and Territories and zero interest loans or equity investments. The goal? To ease pressure on the housing market and improve affordability over time, especially in high growth regions like South East Queensland.

What does this mean for agents and conveyancers?

Well, we're likely to see more first home buyers entering the market with lower deposits, less financial buffer, and more urgency to "lock something in" before they're priced out, or miss their scheme allocation, because there's only limited numbers. That can translate into faster contract turnarounds, tighter finance clauses - that's for you mortgage brokers and bankers. And put more pressure on both agents, conveyancers and  financiers to move quickly.

All right. Now let's compare this to the Coalition's plan.

Tax deductions and super access. The opposition's strategy focuses more on boosting buyer capacity through financial relief.

Number one - mortgage interest tax deductions. Yes, you heard that right! First home buyers could deduct up to 100% of the mortgage interest from their taxable income for the first five years. That's huge on a principal place of residence. And for a buyer on a 30% tax rate, this could mean around $12,000 in savings over that period.

Number two - superannuation for deposits. So the Coalition wants to allow first home buyers access to their superannuation to help fund a home deposit. Whilst also controversial, the policy appeal is for younger Australians struggling to save a full deposit under current lending rules and getting into the housing market.

Number three - relaxing lending rules. So there's also a push to reduce serviceability buffers by the Coalition, making it easier to borrow more with the same income. What this means on the ground - buyers may have a stronger borrowing position on paper, but potentially without a long-term safety net.

There's risk here, especially in Queensland's regional markets, where property values can swing more dramatically, and it also puts additional stress on conveyancers to provide crystal clear, fast advice when buyers are navigating more complex financial arrangements. 

Now guys, these are politicians we're talking about. So these promises should hopefully come true whoever gets in. But again, it's all part of the game of politics, right?

What the experts are saying. 

Plenty of economists are waving red flags. Why? Because boosting demand without fixing supply almost always leads to price increases, not affordability. Some forecasters predict the current housing policies could inflate prices by 8 - 15%, putting even more strain on buyers and leading to riskier borrowing behaviors.

Economist Chris Richardson called the entire housing policy debate, a "dumpster fire of dumb stuff", while Saul Eslake labeled the Coalition's mortgage deduction plan "the dumbest policy decision of the 21st century". Ouch.

Okay, some final thoughts quickly.

We are not politically charged at Empire Legal. We are just here to give you the latest facts and Queensland Property news. As always, Empire Legal is across the fine print, so you don't have to be. Whether you're a first time buyer using the latest scheme or a seller wondering if now is a good time to make your move, our team is ready to help navigate the legal side -  clearly, confidently, and quickly.

If you've got a client with questions, or you yourself have questions trying to decode these new policies, get in touch with us.

I would love to hear your thoughts on these new policies - whether they're smart, a "dumpster fire", or otherwise. Head over to our Instgram or YouTube and drop us a comment please.

Also, a reminder to email me if you have any blog suggestions where we can help this audience. What do you want to know? Please email me and I will continue to create helpful, informative, free, easy to digest content. You can catch me at george@empirelegal.com.au.

Guys, that's it for this week. Thank you so much. As you know, there's not too many property lawyers in Queensland getting out in front of a camera every week, bringing the latest breaking property news to you. It's all free, doesn't cost you a dollar. Just want you to subscribe - so we can help more people get found.

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Ladies and gentlemen, please keep in mind that all advice is general in nature and does not constitute legal advice. This is authorised by George Sourris, Empire Legal, Brisbane, Queensland, Australia.

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Note: all information is general in nature and as each matter is unique please contact our office for tailored advices: the above does not constitute legal advice.