Two key pieces of legislation that aim to help ease Australia’s housing crisis by helping buyers and renters have passed through Federal Parliament.

The first, the Help to Buy Scheme, is intended to help low and middle-income earners access housing with the Federal Government becoming an equity partner. The scheme will be administered by Housing Australia and provide up to 30% equity for eligible homebuyers taking out a loan to purchase an existing home or up to 40% equity for a new home. There will be 10,000 “places” every year for the next four years. Eligible buyers will only require a 2% deposit to access a home loan through the scheme.

The second piece of legislation will incentivise developers to push ahead with Build to Rent projects and ease the rental crisis. It is expected to encourage the delivery of 80,000 rental homes over the next decade. For build-to-rent operators to be granted tax concessions through the scheme, they will need to offer five-year minimum leases and no-cause evictions will not be allowed. It ensures rents are capped at below 74.9% of market value or 30% of a tenant’s income, whichever is lower.

Real Estate Institute of Australia (REIA) president, Leanne Pilkington, says it is a “vital step in addressing the nation’s housing crisis”. She says it will encourage institutional investors through tax benefits to deliver rental housing, including affordable tenancies. “This is a significant step in stabilising the rental market but not the panacea; the role of small private investors will continue to be an integral part of the solution and the government needs to ensure tax settings remain the same; so as not to contract supply in this segment,” she says.