The proposal would allow first home buyers, who purchase a newly built home, the ability to deduct the interest paid on up to $650,000 of their mortgage from their assessable income. There is no cap on the size of a mortgage captured under this policy.

The measure will be available to individuals earning up to $175,000 and joint applicants earning up to $250,000. Once found eligible, participants will retain access to the deduction even if their income rises.

The deduction can be claimed for up to 5 years, if the home is the principal place of residence.

The proposal would be ongoing and start on 1 July 2025.