Coalition Vows to Restrict First Home Buyer Scheme to Citizens Only
In a significant policy announcement, Opposition leader Angus Taylor has declared that a future Coalition government will ban permanent residents from accessing the government's five per cent deposit scheme for first home buyers. Speaking to 2GB radio on Tuesday, Taylor labelled the current eligibility for permanent residents as "outrageous," asserting that the initiative was designed exclusively to assist young Australian citizens.
"A Scheme Designed for Australians"
"This is a scheme designed for Australians to get into a home," Taylor stated emphatically. "Young Aussie citizens buying their first home, that's who this program is for." He confirmed that the Coalition would implement the restriction, offering what he termed a "sneak preview" of a formal policy reveal scheduled later that day. "I will say at that speech that we will restrict that program to Australian citizens," Taylor affirmed. "That is what should happen."
The scheme, which allows purchasers to buy a property with just a five per cent deposit while the government guarantees the remainder to avoid lenders mortgage insurance, has seen expansions in recent years. These changes included removing income caps and extending eligibility to permanent residents. However, the Coalition argues this has intensified competition in an already overheated housing market, particularly disadvantaging first-home buyers.
Concerns Over Program Integrity
Taylor highlighted that nearly 50,000 permanent residents are estimated to have accessed the scheme under current rules, which even permit those owning property overseas to qualify. This, he contends, undermines the scheme's original purpose. During the interview, 2GB host James Willis remarked, "The scheme has been allowed to explode. Someone could be owning a home in America or Spain and still come here and take advantage of it." Taylor agreed, suggesting the program had been distorted to "make the numbers look better than they actually were."
Broader Immigration and Housing Agenda
This housing announcement forms part of a broader hardline policy agenda unveiled by the Coalition, with immigration as a central theme. Taylor rejected assertions that the platform aims to attract One Nation voters, instead framing it as a move to restore trust. "I'm chasing Australian values," he explained. "If people are to trust our immigration system, they need to know it's fair, firm and not being abused."
On housing more broadly, Taylor criticised net overseas migration figures as "too high," linking them to a housing shortage that pushes home ownership out of reach for younger Australians. "Younger Australians believe they may never own a home," he lamented. "This is a hopeless situation and it must change." He indicated that further announcements on reducing migration numbers would follow in the coming months.
Supporting Data and Analysis
Conservative think tank The Institute of Public Affairs (IPA), which includes former prime minister Tony Abbott as an affiliate, analysed the latest Overseas Arrivals and Departures database from the Australian Bureau of Statistics. Their findings show net permanent and long-term arrivals totalled 494,540 in the 12 months to January 2026, the highest in recorded history. Additionally, Home Affairs data reveals there were 2.98 million temporary visa holders in Australia as of January 1, underscoring the scale of migration pressures.
Taylor's pledge marks a decisive shift in housing policy, aiming to refocus support on citizens amid ongoing debates over immigration and affordability. The Coalition's approach signals a tightening of access to key social programs, with implications for both the housing market and broader immigration frameworks.
