TV interview with Minister Butler, Sunrise – 7 August 2026

NATALIE BARR, HOST: Government MPs have been accused of crowing about falling house prices, brought on in part by tax reform and the 5 per cent deposit scheme. Labor MP Jerome Laxale posted an annotated headline to social media changing a quote from an auctioneer who said conditions were the worst he’d ever seen to the best, on a story about a first home buyer couple who were the only bidders for a two bedroom Sydney apartment.
 
For their take, let’s bring in Health Minister Mark Butler and Deputy Opposition Leader Jane Hume. Good morning to both of you. Mark, Tanya Plibersek was on this show this week, earlier in the week, saying there’s never been a better time to be a first home buyer. The home prices that have fallen the most are in the higher category, not in the first home buyer category. So do you stand by that statement that she made?
 
MARK BUTLER, MINISTER FOR HEALTH AND AGEING, MINISTER FOR DISABILITY AND THE NDIS: I think what Tanya and Jerome are both referring to is the fact that first home buyers are now taking centre stage in auctions on Saturday afternoons, rather than having to compete time and time again with investors who have the benefit of a tax break, particularly in the part of the market which is existing houses. That's a good thing. That's a deliberate result of the policies that we've put in place. We want to see first-home buyers able to get into the market easier.
 
It is still hard for first home buyers because prices are still historically high. As a ratio to income, they're higher than they certainly were when Jane and I were the age of most first home buyers. It is still tough and that's why we're doing so many things. The 5 per cent deposit loan scheme for first home buyers to help them get a crack at the Australian dream of home ownership.
 
BARR: Yeah, so this whole quote that it's never been a better time to be a first home buyer, that's just wrong, isn't it?
 
BUTLER: I think you saw Tanya put that in some historical context later in the week, and it does reflect the fact that we know house prices over the last 20 or 25 years have skyrocketed by 400 per cent, way faster than income. People who are trying to break into the housing market for the first time have to put together deposits, if they're not part of our 5 per cent scheme, that, frankly, not too long ago would have bought an entire house when Jane and I were their age.
 
BARR: Exactly.
 
BUTLER: It's tough for young people who want to break into the market. That's why we're doing so much to give them a fair crack at it.
 
BARR: Yeah, Jane, what are you seeing? There are property agents saying there are a lot of first-home buyers holding off. They're worried about interest rates going up. So is it a market-by-market situation across the country right now?
 
JANE HUME, DEPUTY OPPOSITION LEADER: Well, I think Australians don't cheer on falling house prices. Only Labor seems to do this. And you don't make housing more affordable by making Australians poorer. When inflation is still running out of control, we've had 15 interest rate rises under Labor, and now taxes are going up. It's even harder for Australians to buy a home than it's ever been before. This 5 per cent deposit scheme, which was started under the Coalition, was a really well-managed program but it's blown out of control now. We're seeing people that are non-citizens getting access to it, people that have already owned their own home overseas or own a property overseas are getting access to it. And just yesterday it was reported that people are using the scheme to buy investment properties.
 
Now, this is a taxpayer subsidised scheme. No wonder Labor is running out of money and increasing taxes if they're using taxpayer money to subsidise what is a failing housing market. The answer is simple. Build more homes. Manage the demand side by managing migration and then fix the economy by lowering taxes and lowering energy prices.
 
BARR: So look, in polls nearly 70 per cent of people said they were supporting prices to drop a bit so that young people could get into homes. But let's go on to that topic you brought up. Mark, I want to ask you this. Economists are urging the government to close a loophole in that 5 per cent deposit scheme. It allows Australian residents who own foreign property to still be eligible for the first home buyer grant. So if you've got, you know, something back in the old country, you can still be in the first home buyer 5 per cent down scheme. Do you think that's fair?
 
BUTLER: Applicants for this scheme have to declare all of their assets, whether they're held in Australia or held overseas. If those assets would allow them to put together a deposit of 20 per cent, then they're not eligible for the scheme. I'm not quite sure which cases Jane has come across where someone has a property overseas or here in Australia that would allow them to put together the 20 per cent deposit or has other assets like shares, for example. It's very deliberately targeted. People have to make that declaration.
 
Jane wants to knock out permanent residents, people who are here forever. We've told them they're here forever. Their kids are here. They might be doctors or nurses occupying a really important gap in the market in the health sector, for example. None of the housing economists who are in these stories support Jane's position on this. I'd be interested to know what the cases are that Jane says people have houses overseas that are worth 20 per cent deposit. It's very clear if you have assets held here or held elsewhere in the world, you're not going to be eligible for this scheme. It doesn't matter whether you're a citizen or a permanent resident.
 
BARR: OK, so, Jane, the government's saying that's wrong. You can't own something overseas and be part of the 5 per cent down scheme.
 
HUME: This program has been a balls-up from go to woe under Labor. We're now hearing that people that are earning as much as $674,000 per couple are accessing it.
 
BARR: Yeah, that's a separate topic, but do you know people- have you got examples of people who own property overseas who have been accepted into the 5 per cent down first homeowner scheme?
 
HUME: Well, this is the loophole that is being reported in in the newspapers today. That, along with the fact that around 1500 people are now using it to buy investment properties. And the reason why we want to make sure that there is integrity measures around this program is so that citizenship is valued. Citizens should be able to access taxpayer-funded subsidies to buy their first home, not non-citizens. And, of course, the moment you open that to non-citizens, well, again, you’re distorting a market. We want to see that Australians are put first. Citizenship should have its privileges, and taxpayer-funded subsidies as one of them.
 
BARR: OK, we'll leave it there. Thank you very much. We'll see you next week.