Thousands of Australians seeking to buy a home will soon get assistance with laws due to go to federal parliament.

The “Help to Buy” laws, to be introduced this week, will support 40,000 eligible homebuyers with an equity contribution of up to 40  per cent for new homes and 30 per cent for existing homes.  

Homebuyers will need a minimum two per cent deposit to participate in the scheme, and will have lower ongoing repayments while they take part.  

States will need to pass their own legislation in order for the program to operate in their jurisdiction, but it will start in the ACT and Northern Territory following passage of Commonwealth legislation.

The aim is to have the scheme operating nationally from 2024.

Housing Minister Julie Collins said the government’s plan was about “making sure that more Australians have a safe, affordable place to call home”.

“We are trying to turn this around, as I said it’s not easy to turn around quickly, it will take some time but we’re working at every avenue,” she told the ABC on Tuesday.

“This is the great Australian dream we’re trying to bring back for Australians who have been locked out for ages (from) getting into their own home.”

It complements other schemes including the $10 billion Housing Australia Future Fund and the $2 billion social housing accelerator.

“It won’t just be a leg up into home ownership with savings from a smaller deposit – it will provide long-term relief to Australians who are part of the scheme,” Ms Collins said. 

“In fact, Help to Buy could help eligible new home owners save hundreds every month on their mortgage.”

Asked whether the government had any plans to change taxes on the family home, Ms Collins said, “We’re not looking at those things.”

“What we’re focused on is getting Australians into their own home, which is why we’re introducing this scheme.”

The Housing Industry Association’s managing director Jocelyn Martin said Help to Buy was an important initiative.

“These and other forms of housing incentive programs are critical to boost housing supply and home ownership rates to support first home buyers raising the deposit more quickly and easily,” she said.

“We know from previous schemes, such as the First Home Buyer grant, that grants such as those help to buy are effective to getting people into their own home, and new housing supply is stimulated by these schemes.”

A report of an inquiry into the rental sector which was due to be released on Tuesday has been postponed to December 5.

By Paul Osborne and Kat Wong in Canberra

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