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As the new financial year kicks off, a spate of new and expanded housing schemes is set to come online.
Several major changes are scheduled to come into effect as the new financial year begins, including the incoming new shared equity scheme, Help to Buy.
Help to Buy details
First announced in 2022, the long-delayed shared equity scheme will see the government contribute up to 40 per cent of the purchase price for new homes or 30 per cent of existing homes for eligible borrowers.
Under Help to Buy, eligible low- to middle-income earners would only need a 2 per cent deposit to qualify for a standard loan with participating lenders and wouldn’t be required to pay lenders mortgage insurance (LMI).
While the commencement date for Help to Buy has not yet been determined, it is expected to open for applications later this year, given that the program directions were registered last month.
The program directions outlined that 10,000 places are to be made available in the period starting on 1 July 2025 and ending on 30 June 2026. Each participant must treat the relevant property as their principal place of residence and cannot lease the property.
To be eligible, a participant cannot be receiving other forms of home ownership assistance. This includes home buyer guarantees from Commonwealth entities, participation in a shared equity scheme, or any loan or guarantee provided by a state or territory to support home ownership. Participants will also need to have in place adequate insurance.
As announced earlier this year, once established, the scheme will have larger price caps and higher income limits applied than originally announced. The price caps are as follows:
Income limits will be $100,000 for single borrowers and $160,000 for joint borrowers. Income limits will be indexed on the first day of each financial year starting on or after 1 July 2026 by multiplying them by their indexation factor for 1 June in the preceding financial year.
To be eligible for a loan under a Help to Buy arrangement, a single first mortgage must be obtained from a participating lender, with the applicants as the sole counterparties. This mortgage must be a variable or fixed-rate loan, requiring scheduled principal and interest payments over a maximum of 30 years, though exceptions exist for hardship or new home construction. Additionally, applicants must grant a second mortgage to the Commonwealth.
For new home construction, a fixed-price contract with a licensed builder is required, ensuring the dwelling is fully completed and insured and adhering to specific construction and settlement time frames; construction must commence within 12 months of the transfer date and be completed within 36 months; while for off-the-plan dwellings, construction must begin before the sales contract and settlement must occur no later than 90 days after approval.
Guarantee scheme changes
With the start of the new financial year, 50,000 new Home Guarantee Scheme (HGS) places have been released across the three guarantees. There will be 35,000 places for the First Home Guarantee, 10,000 places for the Regional First Home Buyer Guarantee, and 5,000 places for the Family Home Guarantee.*
Both the Regional First Home Buyer Guarantee and the Family Home Guarantee were originally scheduled to expire on 30 June 2025, but were expanded by the Albanese Government in its election promises.
However, changes are being made to the Home Guarantee Scheme (HGS) in future.
One of the election promises from the Albanese government was to remove income and placement limits for the First Home Guarantee.
As such, from January 2026, all first home buyers will be eligible to purchase a home with a 5 per cent deposit without lenders mortgage insurance (LMI) needed.
The change expands the existing scheme by removing income and property price caps, widening access to prospective home buyers.
The HGS will be changed to increase property price caps for eligible homes under the scheme. For example, in Sydney, the cap will increase from $900,000 to $1.5 million
The government will also guarantee up to 15 per cent of the home loan.
The government will also invest $4.9 million over four years from 2025–26 to continue the Regional Home Buyer Guarantee and the Family Home Guarantee, which support regional and single-parent first home buyers to purchase a home with a smaller deposit.
Instant asset write-off extended
Prime Minister Anthony Albanese has also confirmed that the $20,000 instant asset write-off will be extended for the 2025–26 financial year.
The commitment means small businesses will be able to immediately deduct the cost of eligible assets costing less than $20,000, provided they are first used or installed by 30 June 2026.
The threshold applies per asset, meaning businesses can claim multiple purchases, including tools, office equipment, kitchen appliances, and technology.
Speaking during a doorstop interview in Canberra yesterday (30 June), Albanese said: “From tomorrow … the extension of our instant asset write off of $20,000 kicks in. So, right across the board, we have considerable support kicking in tomorrow to provide that ongoing cost-of-living relief.”
In April, the Labor Party originally announced that it would extend the $20,000 instant asset write-off if the party were to win the federal election.
* This story was updated on 1 July 2025 to reflect new information released by Housing Australia.
[Related: Labor commits to instant asset write-off extension if re-elected]
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