After what can only be described as one of the most interesting campaigns in modern history, Labor has risen from the ashes to claim the Federal Election.
With campaigning and party spruiking infiltrating everything from billboards to social media, politicians from all parties have spent the last six weeks pitching and spruiking in the hopes of hitting the right notes with voters.
Grappling with a once in a generation health crisis, increasing global instability, skyrocketing house prices and inflation soaring, the battle for The Lodge was thought to be between two men who couldn’t be more different than the South Sydney Rabbitohs and the Cronulla Sharks. In reality, it would appear that Australian voters have pushed back against the two party system, and have instead gone on to elevate a new generation of Independents into positions of power.
While the AEC are still tallying the final numbers to determine whether the winning party will be governing with a majority or minority, this much we know for sure: Anthony Albanese, leader of the Australian Labor Party, has won the Federal Election, and will be Australia’s 31st Prime Minister.
What We Can Expect From A Labor Government
A study conducted in 2013 by Hotspotting concluded that while the actual elections themselves have little to no impact on the property market beyond impacting clearance rates on the election weekend, the winner themselves can have an enormous influence on how the property market moves forward.
After Scott Morrison and the LNP won the Federal Election in 2019, many argued that his “miracle win” wasn’t of his own merit, but was instead thanks to the radical changes proposed by then Labor leader, Bill Shorten.
This time, it would seem that both the LNP and ALP have shied away from any major policy changes that could affect the property market. Many would argue that Bill Shorten’s proposed reforms to negative gearing and capital gains tax were one of the reasons why Labor lost the 2019 Federal Election, with new leader Anthony Albanese axing any such changes.
Although it’s yet to be determined whether Albanese and Labor will have enough seats to form a majority government or not, it’s clear that the ALP have purposefully shied away from making any large scale reforms to the property market, bar improvements to social housing. However, there are a few changes to note that will directly come from a new era in Australian politics, with Labor promising the following.
- A new Help To Buy Scheme, involving an equity contribution from the Federal Government of up to a maximum of 40% of the purchase price of a new home, and up to a maximum of 30% of the purchase price for an existing home, for 10, 000 Australians each financial year.
- A Regional First Home Buyer Support Scheme, which is aimed to provide a government guarantee of up to 15% for eligible first home buyers, so that locals with a 5% deposit can avoid paying mortgage insurance. This is similar in nature to the previous Regional Home Guarantee.
- A $10 billion dollar Housing Australia Future Fund, which will build 30, 000 new social and affordable housing properties in its first five years, and designed to provide support to some of the nation’s most vulnerable – given Albo’s background, it has been said that this is one of his most personal endeavors.
In addition, Albanese and the Australian Labor Party are also looking to establish a National Housing Supply and Affordability Council, which will set targets for land supply and advise on ways to improve land-use planning and supply for housing.
The new Council will also collect “nationally consistent data” on housing supply, demand and affordability and report on rental affordability, social housing, and homelessness and advise on ways to boost the construction of social and affordable housing.
Although this new policy may have slipped through the media cracks, clients of Cherry Lending & Finance may also be pleased to learn that Labor have also made a commitment to the Australian emergency services community.
Prior to winning the Federal Election, Albanese announced in the Labor Budget that there would also be a further 10, 000 affordable housing properties would be for “frontline workers” – or in his own words, “the heroes of the pandemic, those nurses, police, emergency service workers and cleaners that are keeping us safe”.
Australians who work in these often can only afford to live long distances from their places of employment, which is something that the ALP is looking to alleviate. The housing fund will be managed by the Future Fund board of Guardians, which is chaired by former Coalition treasurer Peter Costello.
With the Coalition suffering one of its most humbling election losses in history, many parts of the nation seem marred with both anticipation and a sense of hope. Whether Albanese and the Labor Party make the most of the responsibility and power that has been bestowed upon them, we’ll just have to wait and see.
Your Guide For Navigating The World Of Home Loans
With a background in banking, finance, business development and project management, there’s no better advocate to have on your team than Nikki Berzin. As a fully qualified mortgage broker and director of Cherry Lending & Finance, Nikki is passionate about all things finance, and empowering her clients with the tools to hit their property goals is what she does best.
If you’re looking to get into your first home, purchase an investment property or even want to look at your options for refinancing, the first step is starting the conversation. Get in touch with Nikki today, or call her directly on 0427 374 155 to bring your mortgage dreams to life.
Disclaimer: Your full financial needs and requirements need to be assessed prior to any offer or acceptance of a loan product. Subject to lenders terms and conditions, fees and charges and eligibility apply.
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