Prime Minister Anthony Albanese will unveil a multimillion-dollar pledge to make housing more affordable for first-home buyers as both leaders go head-to-head with major election promises.

Labor and the Coalition will on Sunday officially launch their campaigns for the May 3 federal election— each with a $10 billion announcement.

If re-elected, Albanese will vow to spend $10 billion on building 100,000 homes for first-time buyers from 2026 — adding to the existing $32 billion Homes for Australia plan.

All first-home buyers would also only need a five per cent deposit in an expansion to the existing Home Guarantee Scheme, with the Federal Government guaranteeing a portion of the loan.

This means first-home buyers would avoid the costly expense of Lenders Mortgage insurance.

Opposition leader Peter Dutton will reportedly announce his $10 billion promise to give Australians up to $1200 in tax relief in a one-off payment in 2025-26.

The Australian reports Dutton will revive the Morrison-era tax offset program to benefit more than 10 million Australians earning between $48,000 and $144,000.

The “cost-of-living tax relief” package would begin flowing from August 2026 if the Coalition was elected.

Labor’s campaign will launch in Perth while Dutton is expected in Sydney for the Liberals’ launch.

Under Labor’s housing plan, the government would work with states and territories to use vacant or under-utilised government land to fast-track release and planning approvals.

The 100,000 extra homes would start being built from 2026, with buyers moving in by 2028.

Albanese said Labor would expand the existing Home Guarantee Scheme (HGS), which allows a five per cent mortgage deposit, to remove current caps on incomes and applicant numbers.

This means all Australians would be able to buy their first home with a five per cent deposit, with the government guaranteeing the other 15 per cent.

Property price limits in the existing Home Guarantee Scheme (HGS) would be increased to reflect the cost of buying a house in each state’s capital.

It would mean a Sydney first homebuyer could buy a $1 million apartment with a $50,000 deposit, or a Queenslander could purchase a $850,000 home with a $42,500 deposit.

“I want to help young people and first homebuyers achieve the dream of home ownership,” Albanese said in a statement.

Albanese’s pitch is also expected to emphasise the government’s track record of lowering inflation to 2.4 per cent, lowering interest rates, keeping unemployment down and creating jobs.

“Our vision is for building Australia’s future, dealing with the immediate issues that we need to put in place, providing further cost-of-living relief,” he told reporters in Perth on Saturday.

“What my government offers is stability, is certainty, is competence.”

Labor has already committed to pouring $8.5 billion into Medicare to ensure nine out of 10 GP visits can be bulk-billed.

It has also promised to cut 20 per off student debts, rebates of $150 on energy bills and small tax cuts.

Dutton has promised to lead a campaign that will deliver on issues he has been presented with across Australia, including cost-of-living pressures and the difficulty of home ownership.

“People who are in tears about the cost-of-living crisis in their own families, young Australians who have lost the dream of home ownership under this government,” he said in Western Australia’s Tangney on Saturday.

“People who feel less safe in our community (and) people who are worried that they’ve got a prime minister who just can’t tell the truth.”

Dutton was reportedly set to announce a one-off tax offset of up to $1200 for people earning up to $144,000, to be paid as a lump sum from July 2026.

The Coalition has also pledged to reduce the annual intake of permanent migrants from 185,000 to 140,000 for two years and cut the number of refugee and humanitarian places.

It has already vowed to temporarily halve the fuel excise, match Labor’s Medicare funding and establish a $5 billion fund to speed-up essential infrastructure.

Housing plan

•  A re-elected Labor government would spend $10 billion on up to 100,000 properties for first-home buyers to help ease the housing crisis
• States and territories and industry partners would be enlisted to identify suitable projects, including the use of vacant or under-utilised government land
•  Each state and territory would be able to fast-track land release, upzoning and planning approvals so construction could begin in 2026-27, with buyers moving in from 2027-28
• The $10 billion would provide $2 billion in grants and $8 billion in zero-interest loans or equity investments primarily to states and territories
•  States and territories would have to match the $2 billion grants
• Labor would expand the existing help-to-buy scheme to enable first-time buyers to secure a property with a five per cent deposit and avoid Lenders Mortgage Insurance, which can cost an average of $23,000
•  A federal Labor government would guarantee 15 per cent of the property’s value
•  Property price limits would be increased to average house prices in each city and region
• Sydney’s current property price limit of $900,000 would be increased to $1.5 million and Brisbane’s would rise from $700,000 to $1 million
•  Victoria’s capital or regional centres could increase from $800,000 to $950,000, Perth from $600,000 to $850,000, Adelaide from $600,000 to $900,000, Hobart from $600,000 to $700,000
• The Northern Territory would stay at $600,000, while the ACT would rise from $750,000 to $1 million
•  A Sydneysider could buy a first apartment costing $1 million with a $50,000 deposit and a Queenslander would spend $42,500 on a deposit for a $850,000 home
•  The change would come into effect from January 1, 2026

-with AAP