The prime minister has slammed Anthony Albanese’s $329 million home ownership offer to voters, saying it would allow a Labor government to ‘get a slice’.
Scott Morrison has accused Anthony Albanese of trying to ‘take a slice’ of potential buyers as part of a sweeping $329million plan that would see the government buy up some of people’s property.
Labor says its ‘Shopping Aid’ scheme will attract more low-to-middle income people into the market with a smaller deposit and mortgage.
But the Prime Minister hinted that it was a lucrative exercise.
“Our plan is for Australians to own their own home, not for the government and Anthony Albanese to own your home,” Mr Morrison told reporters on Sunday.
“According to Mr. Albanese’s plans, he takes a share.”
The Prime Minister added that Labor was “looking to make money” from the proposed scheme.
“They’ll have the equity in your home…I don’t have a plan to make money from people buying their own homes,” he said.
“On the contrary, I want them to own their own home.”
Mr Morrison said that while housing affordability was a “tough issue”, over the past three years his government’s various programs had helped 300,000 Australians settle into their own homes.
“These policies, despite rising property prices, have been incredibly effective,” he said.
“On each of these occasions, it is these Australians who own their homes – not the government.”
Mr Albanese will expand on his proposed program at the Labor party’s campaign launch in Perth on Sunday.
Under the plan, a Labor government would provide an “equity contribution” of up to 40% of the price of a new home and 30% for existing homes.
The landlord would not have to pay rent on the government’s share of the property.
The government would recover its share of the investment when the house was finally sold.
Owners could also purchase additional holdings during their ownership period.
“After nine long years in government, housing affordability has only gotten worse under the Liberal-National government,” Mr Albanese said.
‘The purchase aid is part of the Labor Party’s plan to tackle the housing crisis.’
The proposed scheme is similar to a Grattan Institute pitch from earlier this year.
To qualify, the buyer would only need a two percent deposit and would be eligible for a loan for the remainder of the purchase price.
It would be open to individuals with a maximum of $90,000 per year and couples with an income of $120,000 per year.
There would also be a cap on the value of property that could be purchased under the scheme – up to $900,000 in Sydney, $850,000 in Melbourne, $650,000 in Brisbane and less for other states and regions .
The policy targets young people who have been excluded from home ownership due to soaring house prices in a low interest rate environment.
From 1981 to 2016, homeownership rates among 24- to 34-year-olds rose from 60% to 45%, according to census figures.
Earlier this year, the Morrison government expanded its First Home Guarantee program, under which potential buyers can buy a property with as little as a five per cent down payment.
Earlier on Sunday, Mr Albanese took aim at Mr Morrison for comparing Western Australia to cave people during strict border closures.
Mr Morrison sparked outrage in WA when he lobbied for states to stick to the national reopening plan in August last year.
“Now it’s like that movie The Croods,” he told the Today show, referring to the children’s movie about the cavemen.
“Some wanted to stay in the cave and the girl wanted to deal with the challenges of living in a different world. Covid is a different world… we can’t stay in the cave.
While the Prime Minister has since denied the comment was specifically about WA, Mr Albanese refuses to let it pass.
“Western Australians often understandably feel like the east coast doesn’t give them the respect they deserve,” he told Sky News, which is available to stream on Glowon Sunday.
“Over the past two years, if you look at how the Australian economy has continued to function, Western Australia and Queensland in particular have done exceptionally well in keeping people in employment.
“Here in WA, when the Prime Minister talked about cavemen, they were scratching their heads.”
The Labor leader said people were going to work, school, restaurants and drinking in pubs when Mr Morrison made the comment.
Attorney General Michaelia Cash – the longest-serving WA minister in the Morrison government – hit back at Mr Albanese’s speech to voters in his home state.
“Oh please. Just because you land on Western Australian soil doesn’t mean you support Western Australia,” she told Sky.
“The fact that Anthony Albanese is willing to campaign with Kevin Rudd – neither of them are friends with Western Australia.”
Senator Cash pointed to the previous Labor government’s profit super tax on miners and infrastructure funding as reasons why West Australians should be wary of Mr Albanese.