The proposal has two components.
Component 1 would invest $10 billion to build up to 100,000 homes for sale only to first home buyers, made up of $2 billion in grants and $8 billion in zero-interest loans or equity investments primarily to states and territories. States and territories would be required to match the $2 billion Federal Government grant contribution. Construction on the first projects would start in 2026-27. The proposal would start on 1 July 2025.
Component 2 would enable every Australian to buy their first home with a 5 per cent deposit, through an expansion of the First Home Guarantee. There would be higher property price limits (see table below) and no caps on places or income. These changes would be implemented on 1 January 2026.
| Region | Current property price limit | New property price limit |
|---|---|---|
| NSW - capital city / regional centre | $900,000 | $1,500,000 |
| NSW - other | $750,000 | $800,000 |
| VIC - capital city / regional centre | $800,000 | $950,000 |
| VIC - other | $650,000 | $650,000 |
| QLD - capital city / regional centre | $700,000 | $1,000,000 |
| QLD - other | $550,000 | $700,000 |
| WA - capital city | $600,000 | $850,000 |
| WA - other | $450,000 | $600,000 |
| SA - capital city | $600,000 | $900,000 |
| SA - other | $450,000 | $500,000 |
| TAS - capital city | $450,000 | $550,000 |
| ACT | $750,000 | $1,000,000 |
| NT | $600,000 | $600,000 |