The government introduced a bill in the House of Representatives yesterday to establish a national shared equity scheme for low and middle income earners looking to buy a home. Under the program, Housing Australia will administer the scheme, providing eligible participants with a commonwealth equity contribution of up to 30 per cent of the purchase price of an existing home and 40 per cent of a new home. Homebuyers will need a minimum 2 per cent deposit to participate and will qualify for a standard home loan (with no LMI). The equity contribution means that borrowers’ monthly repayments will be lower. Minister for Housing Julie Collins said the scheme would make a home purchase affordable for around 40,000 households. Participation will be capped at 10,000 a year. The government has budgeted around A$329 million for the scheme. Housing Australia will provide the commonwealth’s equity contributions for the purchase of the home by way of a shared equity arrangement secured by a second mortgage or other enforceable right against the property. The bill gives effect to a commitment the government made last year. States that adopt the commonwealth legislation will become participating states. The territories will participate in the scheme from commencement. All states agreed at National Cabinet to introduce legislation so that the scheme can operate nationally from next year.