Labor's newly released thought bubble introduced at their campaign launch in Perth over the weekend, has been blow to pieces by nearly every media outlet, in just 3 days.
Firstly, there's the issues of forced equity buy-backs that disincentives participants into bettering themselves out of the $120,000 (per couple) income bracket. Should participants see their income increased over the $120,000 participants will be required to pay back the government equity immediately after the 2 year grace period, creating likely mortgage repayment and financial stress on participants.
Secondly, there's the issue of the forced recovery on inherited property, for participants unable to afford the continued agreement. Which would require any children/family member's who inherit the property to sell the property in order to pay back the government guarantee.
Thirdly, and possibly most importantly there's the issue of negative equity caused by low deposit buying schemes, during property value corrections with rising interest rates. This would likely result in a Labor Government seeking a US styled MBS (mortgaged backed securities scheme) whereby bonds are secured against properties, particularly properties with government equity.
Then there's the obvious hole in their costing. Anthony Albanese disingenuously suggested the program was costed at $347m, however this was quickly laughed off by the press pack when simple mathematics could see the program will likely cost the government upwards of $7 billion over the forward estimates...
This begs the question... is it time Labor stopped creating policies on the back of beer coasters during commutes...
