Dutton, Albanese Housing Policies Risk Escalating Crisis

Opposition Leader Peter Dutton has defended his new housing policy, which allows first home buyers to claim up to $650,000 in interest repayments as tax deductions, against claims that it will exacerbate housing costs. Critics, including economist Bob Breunig, warn that the plan could increase demand without addressing supply issues, potentially driving prices higher. Meanwhile, Prime Minister Anthony Albanese has announced Labor's housing strategy, which includes a $1,000 tax deduction for all workers and significant funding to build new homes, aiming to assist the construction of 100,000 homes over eight years. Both parties are facing scrutiny for their approaches, with economists urging a focus on supply rather than demand-side incentives. The political landscape is heating up as both leaders launch their housing policies in a bid to sway voters ahead of the upcoming election. Overall, concerns remain that both plans risk inflating the housing crisis further.