This impact analysis has been prepared to support the Australian Government’s decision to implement the Help to Buy scheme 2022 election commitment. The proposed scheme will support eligible Australians who would otherwise not be able to enter the housing market, including low- and middle-income earners, key workers, single parents, mature aged women and long-term renters, to purchase a home of their own. 

The Help to Buy scheme will assist 10,000 Australian households each year for four years to purchase a home with a smaller deposit and lower ongoing mortgage repayments. The Treasury estimates the Help to Buy shared equity scheme will increase average regulatory costs by $5.88 million per year, over ten years.

This final version of the impact analysis will inform the Minister’s decision to approve the Help to Buy Program directions that will allow Housing Australia to commence delivery of the scheme. 

Impact assessment findings

• Help to Buy will support 40,000 low- and middle- income households to purchase a home of their own and realise the
  social and economic benefits associated with home ownership.
• While policies that increase the purchasing capacity of buyers can put upward pressure on housing prices by adding to
  demand, Help to Buy is capped at 10,000 participants each year for four years.
• Participation in the scheme will be voluntary, but there will be some regulatory costs to individuals (scheme participants) and businesses (commercial lenders) who participate.

Assessment of the impact analysis: adequate.