ISCOVER
The proposed regulations for the Help to Buy Scheme are under the microscope in a new consultation that launched this week.
The Australian Government has launched a review into the regulations for the Help to Buy scheme.
The incoming Help to Buy scheme, which aims to help more first home buyers enter the market, is expected to open for applications later this year (following passage of state legislation and implementation by Housing Australia).
Under the proposed regulations, a person who disagrees with a decision by Housing Australia under the scheme can ask the Administrative Review Tribunal (ART) to review it.
The current proposed rules include 15 types of decisions that are eligible for this process under the Help to Buy Program Directions 2025.
Reviewable decisions include those to cancel the approval of a Help to Buy arrangement or end an existing arrangement.
An application for review of a decision by the ART must be made within 28 days after the applicant is notified of the decision.
The consultation runs from 15 to 26 September 2025, after which Treasury will review the feedback.
Help to Buy edges closer
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).
Minister for Housing Clare O’Neil announced in March this year that the government will be raising income caps from $90,000 to $100,000 for individuals and from $120,000 to $160,000 for joint applicants and single parents for the scheme.
O’Neill also announced that property price caps will be increased and linked with the average house price – rather than dwelling price – in each state and territory (except NSW capital city and regional centre price caps, which are set lower to ensure purchase prices remain within the borrowing capacity of first home buyers).
The government has said it would take “years off the time it takes to save for a deposit” and save first home buyers around $900 per month when buying an existing home and $1,200 per month when buying a new home (based on a $519,000 home and a home loan “on average rates”).
[Related: Higher income and property caps unveiled for Help to Buy]
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