Labor forced to defend permanent residents in first-home buyer scheme as Jane Hume demands citizens first

Housing policy has become a fresh battleground between Labor and the Coalition, with both parties taking different positions on permanent residents accessing first-home buyer assistance.

Appearing on Sunrise on Friday, Health Minister Mark Butler was forced to defend Labor’s decision to allow permanent residents access to the First Home Guarantee scheme, arguing many migrants spend years building their lives in Australia before becoming citizens.

“We don’t want temporary residents to access programs like this, and they can’t,” Mr Butler said.

“But permanent residents are here forever. They’re building careers, they’re building businesses, they’re having children, and we want them to enjoy the full Australian dream, which includes getting into housing.”

The debate comes after figures revealed about 51,000 permanent residents have accessed the scheme since eligibility was expanded by Labor in 2023.

Deputy Leader of the Liberal Party Jane Hume said the program was originally designed for Australian citizens and argued taxpayer-funded benefits should prioritise those who have formally taken up citizenship.

“I think Australians would rightly expect, when taxpayer funds are subsidising a scheme or supporting a scheme, that that scheme is there for Australian citizens and Australian citizens first,” Senator Hume said.

While acknowledging permanent residents contribute to the economy and pay taxes, Senator Hume argued citizenship should carry distinct advantages.

“Citizenship comes with privileges, and this is one of them,” she said.

The exchange quickly broadened into a debate over housing affordability, with Senator Hume accusing Labor of adding demand to an already constrained market.

“Let’s build more homes,” she said.

“This is a supply-side crisis, and yet you’re fuelling demand by allowing non-citizens to access government-subsidised schemes.”

Mr Butler rejected the criticism, arguing permanent residents already live, work and pay taxes in Australia and should not be locked out of pathways to home ownership.

“Their taxes support things like this scheme,” he said.

The clash highlights a growing political divide over migration, housing affordability and whether government assistance should be tied to citizenship status, as both sides vie for support from aspiring homeowners struggling to break into the market.