Enforcement of tobacco licensing to commence as grace period ends for retailers

The three-month grace period for NSW retailers and wholesalers to apply for a licence to sell tobacco or non-tobacco smoking products as part of the Minns Labor Government’s new Tobacco Licensing Scheme ends at midnight tonight.

From tomorrow, retailers must have a valid tobacco licence and display it at the point of sale to sell tobacco or non-tobacco smoking products. Those who continue to do so without holding and displaying the license will face penalties.

If a retailer or wholesaler has submitted a valid licence application on or before 1 October 2025, they can continue to trade until notified of the outcome of their application.

The Minns Labor Government gave retailers and wholesalers a three-month grace period from 1 July to 1 October to apply for a licence, after the Tobacco Licensing Scheme laws came into effect.

The new Centre for Regulation and Enforcement (CRE) in NSW Health is a dedicated unit created to strengthen compliance and enforcement and will work closely with state and federal agencies to ensure a unified approach.

The licensing scheme comes into effect after the previous Liberal Government failed to implement the reform, leaving NSW the last state in the nation to do so.

The Minns Labor Government has now also passed the Tobacco Legislation (Closure Orders) Amendment Act 2025, adding to some of the toughest illegal tobacco penalties in Australia.

This Act, expected to be in effect in the coming months, will increase the maximum penalties for anyone caught selling products without a valid licence from $11,000 (first offence) or $44,000 (second offence) up to $660,000 for individuals and from $220,000 up to $880,000 for a corporation.

The Act will also introduce the power to issue short-term (up to 90 days) and long-term (up to 12 months) closure orders for premises selling illicit tobacco or illegal vaping goods or selling tobacco or non-tobacco smoking products without a licence.

A new offence will also come into effect for the commercial possession of illicit tobacco, with a maximum penalty of up to $1.54 million, 7 years’ imprisonment, or both, and a new maximum penalty will commence for the sale of illicit tobacco of up to $1.54 million, 7 years’ imprisonment, or both.

Businesses can apply for a licence online using their MyServiceNSW account via the Service NSW website. Applicants are required to complete an online application, provide a recent criminal records check and pay the yearly licence fee. Businesses can get support to submit their licence application by calling the Tobacco Information Line on 1800 357 412.

In determining an application, the NSW Health Secretary may consider relevant information such as:

  • If the applicant or relevant person has been found guilty of an offence relating to the sale or supply of tobacco or vaping goods under any relevant state or Commonwealth law;
  • If the applicant has provided false or misleading information in their tobacco license application;
  • If the applicant has failed to comply with another retail or wholesale licence they currently or have previously held
  • the recommendation of a law enforcement agency, including the NSW Police Force, Australian Federal Police or other state, territory or Commonwealth agency. 

In the last financial year, NSW Health inspectors conducted approximately 1,750 retailer inspections, seizing more than 14 million cigarettes, 2,800 kgs of other illicit tobacco products and over 200,000 illegal vaping goods with a combined estimated street value of around $21.8 million.

In the same period, 16 prosecutions were finalised, with court-imposed fines totalling $432,660.

More information on the new Tobacco Licensing Scheme including how retailers and wholesalers can apply for a licence can be found on the NSW Health website: NSW tobacco licensing scheme.

Minister for Health, Ryan Park:

“The previous Liberal Government failed to implement a tobacco licensing scheme leaving us the last state in the country to do so and leaving us behind the ball in illegal tobacco enforcement.

“The system the previous Liberal Government left behind meant there was no way to clearly identify tobacconists selling illegal cigarettes.

“It’s for this reason we’re introducing a long overdue tobacco licensing scheme, to help us better identify illegal tobacconists.

“My message to those doing the wrong thing is that sooner or later, we will come for you.

“The Minns Labor Government is determined to protect the community from the impacts of tobacco and vapes. By working closely with other enforcement agencies at a state and national level we can address the sale of illicit tobacco.”

NSW Chief Health Officer, Dr Kerry Chant:

“The Tobacco Licensing Scheme gives us better oversight of retailers and wholesalers selling tobacco to ensure they are doing the right thing and to take appropriate action if they are not.

“Tobacco use remains one of the biggest factors in premature death. I acknowledge it’s not easy, but I encourage anyone who smokes to think about quitting for themselves and for their loved ones.

“Quitting smoking remains the most beneficial thing an individual can do to improve their health.

“If you need support to quit smoking or vaping talk to your GP or call the NSW Quitline on 13 7848. The Quitline is a free and confidential telephone counselling service that provides customised assistance to help you quit smoking.” 

Minns Labor Government extinguishes red tape with common sense reform for Farm Firefighting Vehicles

The Minns Labor Government is delivering common sense reform to support farmers during the bushfire season, allowing farmers and rural landholders to register and use Farm Firefighting Vehicles (FFVs) to respond to emergency bushfires near their property.

The move follows recent trials of around 350 FFVs, which supported their use in emergencies and proposed a conditional registration scheme.

FFVs are often used on private property and are not typically registered for use on public roads.

The legal use of these vehicles on public roads in emergency situations is an important reform which will allow farmers and rural landholders to attend nearby fires, not just those on their own property.

The new scheme offers a lower cost conditional registration, which includes inspection for a light vehicle and the issuing of a licence plate expected to be a maximum of $209.

The cost for conditional registration will drop after the first year with the cost, including an inspection estimated at $126 (or only $75 when inspection not required), subject to CPI and CTP increases.

Conditional registration balances the practical need for FFVs to be available as an emergency resource while ensuring vehicle safety standards on NSW roads remain high.

Under the scheme, vehicles will be subject to the following requirements:

  • Vehicle inspections as per the Authorised Inspection Scheme to establish registration, with inspection required every second year and registration to be renewed annually.
  • Firefighting equipment must be permanently and securely attached to the vehicle.
  • Vehicles must only be used for emergencies, not regular operations.
  • May use roads up to 50km away from garaging address east of the Newell Highway, with no distance limit from garaging addresses west of the Newell Highway.

The scheme will commence on 7 October.

Service NSW is ready to assist people with their applications with eligible customers able to apply and pay their registrations in-person at their nearest Service NSW Centre.

More details including eligibility requirements are available on the Service NSW website.

Minister for Roads, Jenny Aitchison said:

“During the 2019 2020 bushfires, I spent a lot of time with farmers, tourism operators and other members of regional and rural communities who were so badly impacted by that catastrophic bushfire season. I heard firsthand stories of the heroism and bravery shown by farmers standing side-by-side with our RFS and other emergency services to fight bushfires.

“I’m incredibly proud of the work that the Minns Labor government has been able to achieve in establishing a scheme which allows neighbours to help each other in the very worst of times.

“We know that in many regional areas, farmers are often the first on scene at bushfires. This change is about ensuring farmers and other road users are safe when they respond to bushfire emergencies.”

Acting Minister for Emergency Services, Anoulack Chanthivong said:

“We thank people who contribute to the wellbeing of others and this change is about making sure our farmers and rural communities have the tools they need to act quickly and safely when bushfires breakout.

“Every minute counts during an emergency and enabling farmers to legally use these vehicles on nearby roads could help protect lives and properties.

“Farm Firefighting Vehicles are already playing an important role on the frontline. By introducing conditional registration, we’re ensuring they can be used in a safe and regulated way, giving farmers confidence while protecting other road users.

“I encourage any farmer needing help to navigate the application process to contact our dedicated Service NSW team members on 13 77 88 or visit their nearest Service NSW Centre for more information about eligibility, documentation required or any other assistance.”

NSW RFS Commissioner Trent Curtin said:

“With most of the state entering the Bush Fire Danger Period today, this reform comes at a crucial time.

“Farmers know their land better than anyone, and when a fire starts nearby their quick action can make all the difference.

“This reform will continue the strong relationship between landholders and the RFS, leveraging all available resources and the expertise and dedication of farmers in safeguarding our communities.”

NSW Farmers President, Xavier Martin said:

“Farmers must have the tools they need to safely and effectively fight fires, and it’s good to see the Minns Government recognise that.”

“NSW Farmers has long been calling for a new restricted use conditional vehicle registration category for farm firefighting units – so they can be used legally to get to fires and support the emergency response.

“The best response is a local response to the get bushfires under control as quickly as possible – and we look forward to working with the NSW Government to ensure this registration scheme is fit-for-purpose”

New MRI machine installed at Wollongong Hospital

The Illawarra community is one step closer to benefitting from enhanced access to medical imaging services, with a new MRI machine installed at Wollongong Hospital as part of a $21.9 million investment to upgrade health services and infrastructure.

The MRI machine was carefully craned into its new home on Level Two around 1am this morning, marking a major step in the delivery of new medical imaging facilities at Wollongong Hospital, which will expand imaging capacity and include an additional CT scanner. 

When fully operational, the additional MRI will help deliver diagnostic services for a wider range of patients, including those requiring breast imaging, biopsy services, and cardiac imaging.

The new medical imaging facilities will be located across two levels, with the CT scanner near the Emergency Department on Level One, enabling improved access for diagnostic services. 

With the MRI in place, equipment commissioning and testing is being carried out, in preparation for radiographers and nurses to undertake training for the machine ahead of operations commencing.

Work on the expanded medical imaging department is expected to be complete in early 2026.

In addition to the medical imaging upgrades, a relocated Medical Ambulatory Care Unit and an expanded Transit Lounge was recently completed as part of the works at Wollongong Hospital, improving patient flow and supporting outpatient care.

Minister for Health Ryan Park:

“We are delivering the health infrastructure our growing community needs.

“The installation of the new MRI machine is a key step in delivering expanded medical imaging capacity at Wollongong Hospital.”

“The new medical imaging facilities ensure people have access to world-class diagnostic technology closer to home.”

Member for Wollongong Paul Scully:

“This is a major milestone in the ongoing investment in Wollongong Hospital which will improve patient care. 

“The installation of this MRI and upgraded medical imaging department will provide patients with better access to diagnostic services ultimately leading to better health outcomes.

“This investment coupled with the additional nursing staff recruited to meet staffing ratios in the Emergency Department and the $220 million commitment in the recent Budget for the next redevelopment of Wollongong Hospital will expand health services in the region to help meet growing demand.”

Koori Knockout shows First Nations skill on the business field

A native bush brewery, barber, clothing labels and artists are among a wide variety of First Nations businesses set to showcase their creativity at the iconic 2025 Aboriginal Affairs NSW Aboriginal Rugby League Knockout this October Labour long weekend in Tamworth.

The Minns Labor Government’s initiative to have an Aboriginal Business Precinct at the country’s largest Indigenous sporting event is running for its second year due to the success of last year.

Backed by the Minns Government’s regional economic development team, the Business Precinct will be delivered by Knockout host Walgett Aboriginal Connection, giving participating businesses the opportunity to promote their products and services to a crowd of thousands.

By removing cost barriers, the Business Precinct gives small and medium First Nations businesses the chance to focus on their products, connect with customers and grow their networks.

The four-day Knockout event will be held at Riverside Sporting Complex in Tamworth from 3 to 6 October, celebrating both the sporting talent of 170 First Nations rugby league teams and the entrepreneurial strength within First Nations communities.

The Knockout is a highlight on the First Nations calendar and is expected to attract up to 30,000 attendees, boost the local Tamworth economy and offer greater exposure and income for businesses featured in the Precinct.

Between matches, players and spectators can explore the Precinct where Aboriginal businesses from across NSW, including Tamworth, Dubbo, Gunnedah, Thornton and Port Kembla, will offer a range of products and services spanning clothing, art, jewellery and beverages.

The event also coincides with Indigenous Business Month, celebrated each October to recognise the diversity and excellence of Aboriginal and Torres Strait Islander businesses.

This year’s theme, Strength through Collaboration, highlights the role partnerships play in the success of Aboriginal and Torres Strait Islander businesses. It reflects importance of coming together to share knowledge, support one another and succeed as a community.

For more information, go to Aboriginal Economic Development | NSW Government

Minister for Regional and Western NSW, Tara Moriarty said:

“Aboriginal entrepreneurs contribute so much to regional economies and cultural life, whether it’s creating goods, generating jobs, developing skills or delivering services that strengthen community and culture.

“Last year’s Aboriginal Business Precinct was an incredible success, giving participating businesses the exposure and confidence to grow, while offering Knockout crowds something unique to experience or take home between matches.

“This year, the Business Precinct will build on that success, continuing to create opportunities for First Nations businesses to showcase their products and services, connect with new customers and strengthen their networks, without the overhead costs.”

Acting Minister for Aboriginal Affairs and Treaty, Jodie Harrison said:

“The Koori Knockout is not just about rugby league it is about celebrating community, culture and connection.

“By having the Aboriginal Business Precinct return for the second year, Aboriginal businesses can gain exposure and promote their services in front of thousands that make the journey to the Knockout.

“NSW is unique in having a specific Closing the Gap priority reform – Reform 5 – that specifically focuses on Aboriginal economic prosperity, jobs and nurturing business, and the precinct is a perfect great example of it in action”

Case study: Makayla Gardener, Rack It Clothing

Proud Aboriginal business owner, Makayla Gardener set out to create something bold, authentic and deeply connected to culture, and that vision became Rack It Clothing.

Rack It Clothing is a lifestyle and streetwear brand made for hunters, lifters and go-getters. The brand creates premium-quality apparel and accessories that combine style, comfort and durability.

From hoodies and tees to fishing shirts, football shorts, caps and lifestyle gear, every piece is built to move with its wearer, in the gym, outdoors or just day-to-day.

Culture sits at the heart of the business, shaping designs that represent strength, resilience and connection, values deeply rooted in First Nations identity. Each product reflects hard work, determination and respect for community and Country.

For Makayla, the Knockout is much more than a sporting event. It’s a celebration of culture, identity and unity – a time when communities come together, families reconnect and pride is shared. Being part of the Knockout gives her the chance to showcase Rack It Clothing, connect with mob and give back to the community that inspires her every day.

This year’s Indigenous Business Month theme, Strength through Collaboration, resonates strongly with Rack It Clothing. To Makayla, success isn’t achieved alone, it comes from supporting each other, sharing knowledge and creating opportunities together. When one business succeeds, the whole community succeeds.

Makayla Gardener, Rack It Clothing:

“As a proud Aboriginal business, our culture is at the heart of everything we do. It inspires us to design apparel that represents strength, resilience, and connection – qualities deeply rooted in who we are as First Nations people.

“For Rack It Clothing, being part of the Knockout is an opportunity to showcase our brand, connect with mob and give back to the community that inspires us every day.

“It’s an honour and privilege to stand alongside other Aboriginal-owned businesses in the Precinct. It represents growth, opportunity and representation, proving that we can create, succeed and thrive while staying connected to our roots.

“For Rack It Clothing, it’s also about sharing our story and encouraging others to chase their dreams and turn their visions into reality.

“For us, Strength through Collaboration reflects what community has always been about. Success isn’t achieved alone, it’s built by supporting each other, sharing knowledge and creating opportunities together. At Rack It Clothing, we believe collaboration strengthens not just our business, but our entire community.”

Case Study: Kayleb Waters-Sampson, Ngurrambaa

Kayleb is a proud Aboriginal business owner and founder of Ngurrambaa, a business dedicated to the continuation of Culture.

Through Ngurrambaa, Kayleb delivers a wide range of products and services, from cultural workshops and community facilitation to dance, traditional and digital art, large-scale murals, clothing and apparel.

Family, country, culture and art inspired Kayleb to start his business and they remain the foundation of everything he creates.

For Kayleb, the Knockout is more than a sporting event. Having been involved in Knockouts for most of his life, he says being able to now see his art represented alongside such incredible talent and community spirit is an honour. With this year’s event in Tamworth, he also sees it as a chance to showcase just how strong his community is, culturally and creatively.

For him, being part of the Aboriginal Business Precinct is an opportunity to grow his business, connect with more people and showcase Culture in new ways.

The Indigenous Business Month theme, Strength through Collaboration, reflects his belief in the importance of unity and supporting one another to achieve success.

Kayleb Waters-Sampson, Ngurrambaa:

“Ngurrambaa is a 100% Aboriginal owned business that specialised in the continuation of Culture through workshops, art, dance, weapons, clothing and apparel.

“Having been involved in Knockouts most of my life, to now having my art represented alongside amazing talent and people is an incredible feeling. With the Knockout being held in Tamworth this year, it’s a great opportunity to showcase how culturally strong our community is.

“Being part of the Aboriginal Business Precinct is an unbelievable opportunity. I’m so appreciative for the chance to showcase my business and talent to more people and it’s something I’ll make the most of.

“Strength through collaboration is something I believe a lot of people don’t understand, just how much stronger we are together. The power of coming together and working towards success is something that only works through unity.”

Sydney confirmed to host 2026 NRL and NRLW Grand Finals

Just days out from the 2025 NRL Grand Final at Accor Stadium, the NSW Government and Australian Rugby League Commission have confirmed an agreement to keep the NRL and NRLW Grand Finals in Sydney in 2026.

The deal secures the game’s biggest event in its traditional home, where it has been played every year since Australian rugby league began in Sydney in 1908 – with the sole exception of 2021 due to COVID-19.

With the 2025 NRL season among the most competitive in recent history and the NRLW continuing its rapid rise in popularity, today’s announcement gives fans from across Australia and New Zealand certainty to plan a long weekend in Sydney in October 2026 for the ‘big dance’.

This weekend, more than 80,000 fans will fill Accor Stadium for one of the nation’s sporting highlights, with the Sydney Roosters facing the Brisbane Broncos in the NRLW Grand Final followed by the NRL Grand Final clash between the Brisbane Broncos and the Melbourne Storm. Fans will also enjoy a show-stopping performance by international superstar, Teddy Swims.

The event will be broadcast to millions of rugby league fans across 51 countries, reinforcing Sydney’s position as Australia’s home of major sporting events in a way few other codes can.

As the NRL expands its audience in the United States and Asia-Pacific, keeping the Grand Final in Sydney ensures the city remains the heart of rugby league and provides a powerful platform to showcase Sydney as an ideal destination for major sporting event experiences to the game’s growing international fan base.

Today’s announcement adds to Sydney’s unrivalled calendar of major sporting events for 2026, including the United Cup, SCG Ashes Test, SailGP, AFC Women’s Asian Cup, State of Origin, The Everest and the TCS Sydney Marathon Abbott World Marathon Major.

Premier of NSW Chris Minns said:

“NSW is the home of rugby league and Sydney is unquestionably the greatest rugby league city in the world, so there really is no better place to be hosting the NRL’s showpiece event.

“The NRL Grand Final is one of our nation’s greatest annual sporting events and with NSW representing more than half of the clubs across both the NRL and NRLW competitions, this is great news for the thousands of fans who will come together to celebrate the game in its home city.”

Minister for Jobs and Tourism and Minister for Sport Steve Kamper said:

“The NRL has done a fantastic job in promoting and expanding the game to new international markets. We need to make sure we cement Sydney’s legacy as the nation’s home of sport and the birthplace of rugby league.

“Regardless of who plays in the Grand Final, rugby league fans from across the nation will flock to Sydney. This a big win for sport fans and fantastic news for pubs, hotels, restaurants and retailers in Sydney, and gives them confidence to start to planning for this iconic event.”

Australian Rugby League Commission Chairman Peter V’landys AM said:

“As Australia and the Pacific’s number one sport, we are pleased to confirm that Sydney will host the 2026 NRL and NRLW Telstra Grand Finals.

“The NRL Grand Final day is the most iconic event on our sporting calendar, drawing global attention and attracting tens of thousands of travelling fans into Sydney and NSW every year.

“This year alone over 40,000 tickets, which is more than half the stadium, have been sold to interstate and international fans, providing a huge economic stimulus to the local economy and a $50 million plus return on investment to the NSW Government.”

“We want to thank the NSW Government for the ongoing support of Rugby League as well as Premier Chris Minns and Minister Steve Kamper who have worked with us to reach an early agreement for next year’s Grand Final. Fans can now start making their plans for 2026.”

Carss Park Pool redevelopment to include Learn to Swim pool

The Minns Labor Government has confirmed the inclusion of an outdoor Learn to Swim pool as the final scope of the Carss Park Pool redevelopment gets a tick.

Kogarah War Memorial Pool at Carss Park was permanently closed in 2019 after it was found to be polluting Kogarah Bay. In 2023, the Minns Labor Government committed to working with the Federal Government and Georges River Council to rebuild the 50 metre pool following a community campaign.

With council now committing an additional $5 million bringing their total contribution to $15 million, we will not only be able to deliver the 50-metre pool but we will be able to include a 20-metre by 8-metre Learn to Swim pool as part of the project scope.

The NSW Government through the Office of Sport, is leading the project on behalf of Georges River Council with a Principal Design Consultant expected to be appointed in late 2025.

The NSW Government will call for construction tenders in early 2026 with a contractor expected to be appointed in mid-2026 and the new facility is expected to open to the public in late 2027.

NSW Premier and Member for Kogarah Chris Minns said:

“Kogarah War Memorial Pool at Carss Park was an iconic facility that I am determined to return to the community.

“This increased investment will ensure we are able to expand the project’s scope to support the entire community, from our newest swimmers to masters.

“I look forward to getting on with the job of building this vital community asset and seeing it come back to life in two summers’ time.”

Minister for Sport Steve Kamper said:

“Today is a landmark day in the Carss Park Pool redevelopment project, we are locking in

“The NSW Government’s commitment gives the Kogarah community confidence that Carss Park Pool can return to its glory days as a breeding ground for World and Olympic champions.”

Visit by New Zealand Minister of Defence

Deputy Prime Minister and Minister for Defence, Richard Marles, will welcome New Zealand Minister of Defence, The Hon Judith Collins KC, to Australia today for a bilateral Defence Ministers’ Meeting.

Australia and New Zealand are closer than ever, tightly bound by our shared history, deep people-to-people links, and alignment in our strategic, foreign and trade interests. 

The Deputy Prime Minister will host Minister Collins in Sydney where they will discuss their shared commitment to modernise and strengthen the bilateral defence alliance between our two countries.  

Deputy Prime Minister, Richard Marles:

“Australia’s security partnership with New Zealand was founded in the days of the first ANZACs and formalised through ANZUS. Today, that partnership is stronger than ever.

“Our Trans-Tasman Alliance is seeing us train, integrate and operate more closely together.

“We look forward to continuing to work together to advance our collective interests, and contribute to the peace, stability and security of our shared region.”

Travel to Fiji

Deputy Prime Minister and Minister for Defence, Richard Marles, will travel to the Republic of Fiji from 2 – 4 October 2025 to meet with Fiji’s Minister for Defence and Veterans’ Affairs, the Hon Pio Tikoduadua MP. 

Australia deeply values our close security and defence partnership with Fiji, underpinned by our renewed and elevated Vuvale Partnership.

During the visit, Deputy Prime Minister will attend the opening of the Australian-funded Vuvale Maritime Essential Services Centre – a multi-agency facility that is home to the Republic of Fiji Navy Headquarters, as well as other government agencies, including the Hydrographic Office, Rescue Coordination Centre and Suva Radio Coastal Radio Station.

This facility will support the Government of Fiji in its efforts to protect local fishing industries, respond to natural disasters, facilitate search and rescue operations, and respond to transnational crime. 

Deputy Prime Minister, Richard Marles:

“Our defence relationship with Fiji continues to grow, with increased interoperability between our forces. 

“In a landmark year, 130 Republic of Fiji Military Forces personnel embed with the Australian Army for five months – training and learning together. I look forward to discussing future rotations with my counterpart while in Suva.

“Australia is proud to support the construction and development of Fiji’s newly opened Vuvale Maritime Essential Services Centre, a vital enhancement of Fiji’s maritime response and coordination capabilities.

“We are committed to working with our Pacific family to uphold common values, so we can make our own decisions as strong sovereign nations.”

20th anniversary of the 2005 Bali bombings

Today marks 20 years since the 2005 Bali bombings, which saw the tragic loss of 20 lives, including four Australians, fifteen Indonesians and one Japanese national. 17 Australians were injured along with many other innocent bystanders.

Together, on what will be a difficult day for many in Australia, Indonesia and around the world, we honour the victims, and the courage and resilience shown by survivors and their families.

We also pay tribute to the first responders and volunteers who bravely assisted those in need in the aftermath of the attack.

To commemorate the anniversary, two official memorial services will take place, in Newcastle and Bali.

The Special Envoy for Indian Ocean Affairs, the Hon Tim Watts MP, will join survivors, their families and first responders in Newcastle. Australia’s Consul-General, Jo Stevens, will host a commemorative service at the Australian Consulate-General in Bali.

In honour of the victims, survivors and all those whose lives were forever changed by the attacks, the Australian Government will fund a new, permanent memorial in Australia to commemorate the 2005 Bali Bombings. Plans for the memorial will be developed in close consultation with survivors, and families of the victims.

As we mark this tragic anniversary, the bonds between the governments and people of Australia and Indonesia are stronger than ever.

We share a deep commitment to countering the scourge of violent extremism and will continue to work closely together to further our common interest in the peace and security of our region.

Labor’s 5 percent deposit scheme will add billions to property prices

The Albanese Government’s First Home Buyers Scheme will add $55 billion to property prices over the next six years, according to ABS data analysed by the parliamentary library.

Labor has lifted borrowing limits and income caps under the scheme as of today – a move which, according to media reports, Treasury modelling expects will inflate house prices.

Newly compiled data from the Parliamentary Library shows a 0.5% increase would be $55 billion, increasing the value to $11,164 billion, over 6 years. This amounts to an average of around $9 billion per year.

The Greens say Labor’s deposit scheme will turbocharge the housing crisis by driving property prices up, locking out first home buyers or plunging them into deep debt.

Greens housing and homelessness spokesperson Senator Barbara Pocock:

“In the midst of a national housing crisis, this scheme will add billions of dollars to property prices. How is this a solution? Labor is turbocharging the housing crisis.

“We know this will drive up house prices and we know this will encourage people to buy houses they can’t afford – it’s reckless.

“Under the Labor’s First Home Buyers Scheme, the Government is encouraging people to take out loans on homes they can’t afford. Taking out a 95% mortgage when property prices are eight times the average household income doesn’t create stability — it sets first-buyers up for financial hardship, while the banks take the profits.

“If Labor’s goal is to make housing even more out of reach for everyday Aussies – it’s certainly succeeded. This policy sounds good on paper but it’ll only drive up house prices and plunge first-home buyers deeper into debt.

“Increasing housing demand without dealing with the acute housing supply issue in this country just means more expensive homes. 

“The housing market is rigged for the wealthy. Until the government scraps the tax perks for wealthy property investors – the capital gains tax discount and negative gearing – and builds affordable homes, younger generations will be left on the sidelines.”

Data:

  • The current value of dwelling stock owned by households in Australia is $11,108 billion ($11.1 trillion).
  • A 0.5% increase would be $55 billion, increasing the value to $11,164 billion, over 6 years.
  • An average of around $9 billion per year (assuming a simple linear increase).