Legalise Cannabis MP Rachel Payne is calling on the Allan government to extend the Victorian Homebuyers Fund. Because the Commonwealth Government’s proposed ‘Help to Buy’ scheme would exclude more than half a million Victorians from applying.

The Victorian shared home ownership fund contributes up to 25 per cent to the property’s cost. A first home buyer only needs a 5 per cent deposit. The Albanese government proposed a national shared home ownership fund at the 2022 election. The legislation for the new Help to Buy fund is before the federal parliament. 

Commissioned Analysis

Analysis by the Parliamentary Budget Office commissioned by Rachel Payne MP, shows 668,800 Victorians, currently eligible to apply for the Victorian Homebuyer Fund, would not qualify for the federal ‘Help to Buy’ program. 

“This is mainly because you have to be on lesser income – $90,000 or lower if you are single, or $120,000 as a family or couple – to qualify for the federal scheme,” Ms Payne said. “The Victorian government fund sets a more realistic income threshold – $135,155 for singles and $216,245 for families. 

The state’s scheme

“Under the state scheme, close to 2.3 million Victorians could qualify for help. But if the Federal Government launches its ‘Help to Buy’ program and the state scheme winds up, only 1.6 million Victorians would be potentially eligible. 

“The value of acceptable purchase homes in Metropolitan Melbourne and Geelong will also be slashed by $100,000, capping the value at $850,000.” 

Rachel Payne pushes the government to extend

Ms Payne called on the Victorian Government to extend the state Homebuyer Fund to prevent more than half a million Victorians ‘getting left behind’.

“It is already so difficult for first homebuyers to get a foothold in the real estate market in the middle of a cost-of-living and housing crisis,” she said. 

700,000 Victorians no longer eligible

“Because of these proposed changes almost 700,000 Victorians will no longer be eligible to apply for help to buy their first home, some 88,000 of whom live in my electorate. 

“The state scheme has helped about 11,000 Victorians into their first home.” 

Ms Payne has called on the Victorian Housing Minister Harriet Shing in parliament for a commitment to extend the Victorian homebuyers fund should the Federal Government not secure the support in Canberra to deliver a national scheme.  

The Victorian Homebuyer Fund is expected to help another 4,500 buyers into homes before an anticipated wind up on June 30, 2025. 

The Commonwealth government’s program will have only 40,000 places available nationwide across four years. 

Media contact: Christine Tondorf Phone: 0413 307 092

Tuesday the 19th of November 2024

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