The proposal would establish a shared equity scheme ‘Home Ownership Uplift Scheme’ for first home buyers.

The Government will provide equity of up to a maximum of 25% of the home purchase price. The applicant will be required to have a minimum 2% deposit and finance the remainder of the purchase. The property price thresholds will be the same as the price thresholds required under the New Home Guarantee program each year.

During the loan period, the applicant will be able to buy back the Government’s equity share, at market value. At the time of sale, the Government will recover its equity loan plus a share of capital gains.

The Home Ownership Uplift Scheme will be available to 10,000 purchases in total each financial year. Each year 5,000 of the 10,000 places would be reserved for people living in regional Australia.

Only first home buyers are eligible to access the Home Ownership Uplift Scheme. The income thresholds to access the Home Ownership Uplift Scheme are $80,000 per annum for individuals and $130,000 per annum for joint applicants.

The policy proposal would have effect from 1 October 2022.