The Coalition has launched a scathing attack on Labor’s first home buyer scheme after it emerged that more than 51,000 permanent residents have accessed the program since its expansion in 2022. New data reveals that approximately one in five participants in the scheme are not Australian citizens, a statistic that has drawn sharp criticism from Deputy Liberal Leader Jane Hume.
Citizenship Debate Heats Up
Speaking on the matter, Hume argued that the scheme should prioritise Australian citizens over permanent residents. “I think Australians would rightly expect when taxpayer funds are subsidising a scheme or supporting a scheme, that that scheme is there for Australian citizens and Australian citizens first,” Hume stated. She clarified that no one is suggesting permanent residents should be barred from buying homes, but rather that taxpayer assistance should not be extended to them. “Citizenship comes with privileges, and this is one of them. Subsidising a scheme like this with taxpayer money is one of the privileges of being a citizen,” she added.
Labor’s Expansion of Eligibility
The scheme was originally limited to Australian citizens, but Labor expanded eligibility in 2023 to include permanent residents. Hume argued this was particularly problematic during a housing supply crisis, claiming it was “fuelling demand by allowing non-citizens to access government-subsidised schemes.” She also noted that Australians living overseas would not expect similar assistance from foreign governments.
Government Defends Its Position
The government strongly rejected the criticism, arguing that permanent residents contribute to Australia through work and taxes and should therefore have access to support designed to help people buy a home. Health Minister Mark Butler clashed with Hume on Sunrise, defending the scheme. “Permanent residents are here forever. They’re building careers. They’re building businesses. They’re having children. And we want them to enjoy the full Australian dream, which includes getting into housing,” Butler said.
Butler emphasised that temporary residents cannot access the program, and the government has cracked down on foreign investors buying housing. “We don’t want temporary residents to access programs like this, and they can’t. We’ve also cracked down on foreign investors buying our housing,” he stated. He further argued that many permanent residents have lived in Australia for decades and contribute to public services through taxation. “Their taxes support things like this scheme. We think they should benefit from it,” he added.
Housing Affordability Remains Key Issue
The debate comes as housing affordability continues to be a major political battleground, with both major parties under pressure to improve access to home ownership while boosting housing supply. The government has extended its ban on foreign investors purchasing established homes as part of efforts to ease pressure on the housing market.
