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How the 2025 Election Housing Policies Affect Australian Expats and Property Investors

ByDr Andrew Unterweger

As the 2025 federal election approaches, Australian expats keeping an eye on the property market should take note of the differing housing policies proposed by Labor and the Coalition (Liberal Party). Whether you’re planning to return home soon, invest from abroad, or secure a property for your family, understanding these policies is crucial to making informed decisions.

Here’s a breakdown of how each party’s housing agenda could impact Australian expats:

First Home Buyer Support

  • Labor (Albanese Government)
    Labor proposes expanding the 5% deposit scheme for all first home buyers — no longer limited by income thresholds — and avoiding lenders mortgage insurance (LMI). Additionally, Labor will continue supporting the Help to Buy shared equity program, which reduces the upfront cost of property purchases.
    → Impact for Expats: Expats returning to Australia and looking to buy their first home could access these schemes to enter the market with significantly lower upfront costs.

  • Coalition (Liberal Party)
    The Coalition plans to introduce a mortgage interest tax deduction on the first $650,000 of new home loans for first home buyers. They also propose early access to superannuation (up to $50,000) to assist with home deposits.
    → Impact for Expats: If eligible, returning expats could benefit from tax relief on mortgage payments and leverage their super to fast-track home ownership, particularly in the new build market.

Housing Supply

  • Labor
    Labor has committed $10 billion to build 100,000 new homes for first home buyers and set a target of 1.2 million homes over five years through the National Housing Accord.
    → Impact for Expats: Increased housing supply may moderate property prices and create more opportunities for expats entering the market upon returning.

  • Coalition
    The Coalition proposes a $5 billion infrastructure fund to support the delivery of 500,000 new homes, focusing on fast-tracking essential infrastructure like roads and utilities.
    → Impact for Expats: Improved housing availability through infrastructure investment could expand regional and suburban opportunities for property investment.

Migration and Foreign Investment

  • Both Parties
    Both Labor and the Coalition propose a two-year ban on foreign investors purchasing existing residential properties to ease competition for Australian buyers. The Coalition goes a step further by committing to reduce migration levels temporarily.
    → Impact for Expats: Reduced foreign competition could make it easier for returning Australians to secure property. However, stricter migration caps might slow broader housing demand and construction growth, influencing market dynamics differently across regions.

Regulatory Approach

  • Labor
    Labor supports investing in modular construction technologies and training programs to speed up building times and address labor shortages.
    → Impact for Expats: A more efficient building sector could mean quicker delivery of new homes and more competitive pricing in coming years.

  • Coalition
    The Coalition proposes a freeze on National Construction Code changes for 10 years to reduce costs and regulatory delays.
    → Impact for Expats: This policy aims to make new housing developments more affordable and predictable, potentially benefiting expats seeking new builds.

Final Thoughts: What Should Expats Watch For?

If you’re an Australian expat considering purchasing property, both parties offer policies aimed at improving affordability, but through different mechanisms:

  • Labor focuses on direct government support and increasing housing supply through investment and new programs.

  • The Coalition focuses on market-based solutions such as tax incentives, superannuation access, and regulatory freezes to boost private sector growth.

Ultimately, your personal situation — whether you’re a first home buyer, investor, or planning your return — will determine which policies could benefit you most.

Stay tuned to election developments, and if you need tailored advice on navigating Australian property as an expat, feel free to contact our team. We specialize in helping Australian expatriates plan, finance, and invest wisely for their future back home.

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