The commitment builds on the Albanese Government’s existing $33 billion investment in housing, taking the total package to $43 billion — which Labor claims is the largest housing investment in Australia’s modern history.

From January 2026, following industry consultation, every first home buyer will be eligible to purchase a home with just a 5 per cent deposit, while the government guarantees up to 15 per cent of the loan value — eliminating the need for LMI, which currently costs the average buyer around $23,000. Dutton pledges one-off $1,200 tax offset to half of taxpayers

The full offset would be available to those who earn between $48,000 and $104,000.

The government will also raise the price caps for properties eligible under the scheme to ensure it benefits a broader range of first home buyers, especially in areas like Sydney and Melbourne where average dwelling prices are much higher.

The scheme will not have income caps or a limit on the number of places available.

Sydneysiders will be able to buy their first property for as much as $1.5 million with a $75,000 deposit, while a Queenslander could purchase an $850,000 home with a $42,500 deposit.

Regional centres within a state will have the same price limits as the state capital.

For example, Newcastle would have a $1.5 million limit to match Sydney.

Other regional areas would have smaller limits, different for each state or territory tied to the average price for housing there.

Meanwhile, the government says it will commence construction on 100,000 homes — reserved solely for first home buyers — in 2026-27, with owners able to move in from the following financial year.

The rollout will be a joint effort in partnership with states, developers, and community housing providers.

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Ms O’Neil described the reforms as “nationally game-changing” and told the ABC that deals would be struck with the states on day one of a re-elected Albanese government to set a new course for housing.

“We’ve got a housing crisis in the country that’s been a generation in the making,” she said.

“In our first term we laid really important foundations to address the housing needs of Australians, in our second we want to go further, much further.”

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As the campaign trail heats up, Labor’s housing policy marks one of the most significant plays yet in a contest likely to be decided by cost-of-living pressures, generational opportunity, and economic confidence.

And the choice of Perth as the backdrop for this signature policy announcement is no coincidence.

Western Australia delivered a 10.5 per cent swing to Labor in 2022, helping the party secure four additional seats in the state.

Mr Albanese hopes to repeat his success and signal the government’s determination to retain — and potentially expand — its foothold there.