The Home Guarantee Scheme (HGS) assists individuals into home ownership by providing a government guarantee of up to 15% (or 18% for the Family Home Guarantee). The proposal is to expand the Australian Government's support through HGS to all first home buyers, by uncapping the number of scheme places available, removing existing income caps for applicants and partners, and increasing property price caps. 

This Impact Analysis has been prepared by the Department of the Treasury to inform the Government’s decision to implement the 5% deposits for all first home buyers election commitment. In cases where a comprehensive review has already been undertaken, an Impact Analysis Equivalent (IAE) is able to meet the requirement for an Impact Analysis. The assessment is that the option analysed in the IAE is sufficiently relevant to the regulatory proposal. 

Three policy options are considered in the impact statement.

1. The status quo (no change to the existing guarantee schemes).
2. Increasing the annual allocation of places for first home buyers, a new Regional Home Guarantee and Mature Home Guarantee, with a total of 50,000 guarantee places available each year.
3. As per Option 2, however where the total number of guarantees available each year is limited to 30,000 places.

Option 2 is the preferred option.

The Treasury estimates the proposal will increase average regulatory costs by $5.38 million per year, over ten years.

The report is accompanied by supplementary analysis.