Coalition’s support for all first home buyers to build a new home applauded by builders

Master Builders Australia has applauded the Coalition’s announcement of a new policy that would allow first home buyers to deduct up interest repayments for five years when building a new home (for the first $650,000 of their loan).

“This is a positive and practical long-term incentive that encourages more Australians to build their first home and supports market-driven construction activity,” said Master Builders Australia CEO Denita Wawn.

“Helping first home buyers enter the market by supporting new builds and increasing housing supply is exactly the kind of stimulus we need to keep the pipeline of new housing strong.”

Master Builders Australia said the policy recognises the important role the residential building sector plays in meeting Australia’s housing needs and driving economic growth.

However, the organisation warned that support of first home owners must be matched by reforms to tackle the constraints that continue to drive up construction costs.

“Construction costs have increased by more than 40 per cent over the past five years, and much of that pressure comes from lack of productivity and planning bottlenecks.

“If we’re going to make housing more affordable and accessible, we need serious action to improve planning systems, streamline approvals, and lift productivity in the construction sector,” Ms Wawn said.

Master Builders Australia is calling on all sides of politics to back comprehensive reforms that remove red tape, boost workforce capacity, and make it easier to deliver the homes Australians need.