The Albanese government in Australia is significantly expanding its Help to Buy scheme, allocating an additional $800 million, which raises the total investment to $6.3 billion.

This initiative is part of a broader $33 billion plan aimed at constructing 1.2 million new homes by the end of the decade to tackle the ongoing housing shortage.

The government aims to assist 40,000 Australians in purchasing homes over the next four years, with more than 5 million homes now priced below the new caps.

With increased income and house price caps, first home buyers will find home ownership more accessible than ever.

Income eligibility for the Help to Buy scheme has been raised to $100,000 for individuals and $160,000 for couples or single parents, while the property price cap has increased to $1.3 million in Sydney and $950,000 in Melbourne.

In Perth, the house price cap is set at $850,000, with regional Western Australia capped at $600,000.

Under the scheme, the federal government will cover 30% of the purchase price for existing homes and 40% for new properties, requiring only a 2% deposit from buyers.

Federal Housing Minister Clare O’Neil stated that these changes are designed to assist a generation that feels home ownership is out of reach, enabling most first-home buyers to access a majority of homes.

Despite the expansion, the Coalition argues that the scheme promotes government ownership of properties rather than facilitating true home ownership for Australians.

The Help to Buy Program was first announced during Labor's 2022 federal election campaign and became law in November 2024 after overcoming opposition from the Greens.

Additionally, an investment of $54 million will support advanced manufacturing in prefabricated and modular home construction, with most funding directed to states.

Treasurer Jim Chalmers emphasized that these changes are intended to make home ownership more affordable for young Australians and families.