Help to Buy (Commonwealth Powers) Bill 2024
Plain English Summary
Overview
This bill enables the federal Help to Buy shared equity scheme to operate in Queensland by referring specific legislative powers to the Commonwealth Parliament. Under the scheme, the Australian Government will contribute up to 40 per cent of the purchase price for a new home or 30 per cent for an existing home, helping low to middle income earners buy a home with as little as a 2 per cent deposit. Queensland is the first state to pass this legislation.
Who it affects
Low to middle income Queenslanders who want to buy a home but struggle to save a large deposit. The scheme is expected to assist 10,000 eligible Australians per year nationally over four years.
Key changes
- Refers Queensland legislative power to the Commonwealth so the federal Help to Buy shared equity scheme can operate here
- Enables eligible buyers to access an Australian Government equity contribution of up to 40 per cent for new homes and 30 per cent for existing homes, with only a 2 per cent deposit required
- Housing Australia will administer the scheme, entering into shared equity arrangements and monitoring compliance on behalf of the Commonwealth
- Queensland retains the ability to terminate the referral of power by Governor's proclamation and can object to future amendments to the Commonwealth legislation
- The scheme complements existing Queensland programs including the Pathways Shared Equity Loan and Mortgage Relief Loan
Bill Story
The journey of this bill through Parliament, including debate and recorded votes.
▸Committee2 May 2024View Hansard
Referred to Housing, Big Build and Manufacturing Committee
The Housing, Big Build and Manufacturing Committee examined the bill over approximately one month, receiving 10 submissions and holding a public hearing with industry and academic stakeholders on 27 May 2024. The committee recommended the bill be passed, while also recommending the Queensland Government continue liaising with the Australian Government to ensure the Help to Buy Scheme's parameters — including purchase price caps, income levels, and buy-out provisions — are appropriate for Queensland. A statement of reservations was filed by some committee members.
Key findings (5)
- The bill is a text-based referral of legislative power to the Commonwealth Parliament under section 51(xxxvii) of the Australian Constitution, enabling the Commonwealth's Help to Buy shared equity scheme.
- Queensland's bill must be passed before the Commonwealth bill can be passed, with other states then able to refer power or adopt the legislation for the scheme to operate in their jurisdictions.
- Stakeholders including the REIQ, HIA, MFAA, and housing policy experts raised concerns about the scheme's operational details, including purchase price caps, participant income levels, and allocation of places for Queenslanders.
- The text-based referral approach was preferred over a broader subject-based referral, as it allows the Queensland Parliament to consider the specific text of the Commonwealth bill.
- The Queensland Government accepted the committee's recommendation to continue advocating to the Australian Government for operational settings appropriate for Queensland.
Recommendations (2)
- The committee recommends that the Help to Buy (Commonwealth Powers) Bill 2024 be passed.
- The committee recommends that the Queensland Government continue to liaise with the Australian Government on the parameters of the Help to Buy Scheme to ensure that the volume of participants and places for targeted groups, purchase price caps, participant income levels and buy-out provisions are appropriate for Queensland.
Committee report tabled
▸Second Reading11 June 2024View Hansard
▸21 members spoke12 support1 oppose8 mixed
As housing minister, introduced and championed the bill to enable the federal Help to Buy shared equity scheme in Queensland, arguing it will help low- and middle-income Queenslanders achieve home ownership while criticising the LNP and Greens for blocking the scheme federally.
“The Help to Buy scheme has one important purpose: to help low- and middle-income Queenslanders to purchase a home.”— 2024-06-11View Hansard
Did not oppose the bill but heavily criticised the government's housing record, citing failures including the Griffith University debacle, the Housing Investment Fund not building new homes, the Help to Home program delivering only 62 of 1,000 promised homes, and QBuild producing only 2 of 80 promised prefab homes.
“We will not be opposing this bill. It is important in a housing crisis that we have every option available to us to make sure people are housed.”— 2024-06-11View Hansard
Supported the bill as committee chair, highlighting it complements the Homes for Queenslanders plan and that over 600 Queenslanders are already in homes because of the Housing Investment Fund.
“Over 600 Queenslanders are now in homes because of the Housing Investment Fund.”— 2024-06-11View Hansard
Supported the concept but raised concerns about Queensland receiving only 20 per cent of allocations despite 25 per cent of national housing sales, income eligibility thresholds being too low, and the scheme being limited to banks rather than mortgage brokers.
“The biggest impediment for them is the ability to get sufficient equity to be able to transition into home ownership.”— 2024-06-11View Hansard
Did not oppose the bill but raised concerns about the complexity of the scheme, inadequate income thresholds, and limitations in the eligibility criteria that may exclude many aspiring homebuyers.
“The detail of this bill is really just a line that says we are going to hand over the powers to the Commonwealth.”— 2024-06-11View Hansard
Opposed the bill as a fundamentally flawed approach to the housing crisis, arguing shared equity schemes primarily benefit developers and banks rather than addressing the structural causes of the crisis, and called instead for rent freezes and massive public housing investment.
“This scheme, along with its cousins the first home buyers grant and the first home guarantee, is a demand-side subsidy. What this does is pump more money into the market, which then increases the cost of housing overall.”— 2024-06-11View Hansard
Supported the bill as helping aspiring homeowners in regional areas like Hervey Bay, where the median house price has more than doubled in four years.
“Imagine the joy of owning your first home. For many Queenslanders this dream is becoming increasingly difficult to achieve.”— 2024-06-11View Hansard
Did not oppose the bill but criticised the government's housing delivery record and argued the scheme's income thresholds and property price caps are too low to help many aspiring homebuyers.
“This is a first-time homebuyer assisted scheme and we should be supporting them as best we can.”— 2024-06-11View Hansard
Did not oppose the bill but criticised the government's housing failures, particularly vacant government-owned houses in regional areas sitting empty for years while people live in tents.
“They see the vacant houses not just for one year but for over two years.”— 2024-06-11View Hansard
Supported the bill as helping low- to middle-income Queenslanders into home ownership, and strongly criticised the Greens for opposing new housing developments in their own electorates while claiming to support housing.
“People need housing. We are attacking the housing crisis in every single way. There is no silver bullet solution.”— 2024-06-11View Hansard
Did not oppose the bill but criticised the government's housing delivery record and argued the scheme's income and property price caps exclude Gold Coast nurses, teachers and police officers from eligibility.
“Our nurses, teachers and frontline workers who are desperately trying to get into a home are not eligible for it in the area they have grown up in.”— 2024-06-11View Hansard
Supported the bill as part of the Homes for Queenslanders plan and criticised the LNP and Greens for blocking the scheme federally and opposing housing developments in their own electorates.
“Any responsible government is obligated to find and fund a range of diverse housing solutions to help all Queenslanders.”— 2024-06-11View Hansard
Did not oppose the bill but advocated for increasing the scheme's allocations to Queensland to 25 per cent of places and raising income thresholds to help more aspiring homebuyers.
“The Help to Buy shared equity scheme is all about making it easier for low- and middle-income homebuyers to buy a new or existing house.”— 2024-06-11View Hansard
Supported the bill as helping the lowest income Queenslanders into the housing market, criticising the LNP and Greens for opposing housing solutions while claiming to care about housing.
“This bill is about helping some of the lowest income Queenslanders get into the housing market. I would have thought that would be something that every single person in this chamber would get behind.”— 2024-06-11View Hansard
Supported the bill as worth supporting if run well, but criticised the government's record of delivering housing, citing the Griffith University debacle, empty Catholic Church land parcels, and only 2 of 80 promised prefab homes delivered.
“This bill is worth supporting and that is why the LNP opposition will be doing that. If it is run well, it does offer the prospect of getting low-income people and perhaps middle-income people into their own home.”— 2024-06-11View Hansard
Supported the bill as helping low- and middle-income earners buy a home, highlighting that young families in Mansfield face increasing difficulty achieving home ownership.
“There is one priority of this bill: to help low- and middle-income earners to buy a home.”— 2024-06-11View Hansard
Supported the bill as helping young people who do not have access to the 'bank of mum and dad' achieve home ownership through a shared equity arrangement.
“The Miles government does not think that home ownership should just be for people with access to the bank of mum and dad.”— 2024-06-11View Hansard
Supported the bill as a central pillar of the Homes for Queenslanders plan, noting Queensland will be the first state to legislate the scheme.
“After a whole generation has grown up being told they may never be able to buy their own home, it is a no-brainer that we need to get people into houses.”— 2024-06-11View Hansard
Supported the bill and criticised the LNP for being deeply divided on shared equity schemes, noting their hand-picked candidate for Oodgeroo called it 'really dangerous'.
“Our Miles Labor government believes that home ownership should not be restricted to those who can access the bank of mum and dad.”— 2024-06-11View Hansard
Supported the bill as helping Queensland be the first state to legislate the Help to Buy scheme, criticising the Greens for opposing housing solutions.
“We are going to be the first state in the country to legislate the Help to Buy scheme.”— 2024-06-11View Hansard
Supported the bill as an example of cooperation between state and federal government on housing, noting Queensland will be the first state to enshrine the scheme in legislation.
“When it comes to housing issues that we face as a community, surely that is a good thing.”— 2024-06-11View Hansard