Labor spotlights housing in key NSW seat

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A centrepiece policy to help Australians buy a home is being promoted by Labor on the day the Reserve Bank is expected to lift interest rates.

A Labor government would establish a Help to Buy scheme for 10,000 Australians and provide an equity contribution of as much as 40 per cent of the purchase price of a new home and up to 30 per cent for an existing dwelling.

The plan is a practical measure to assist with cost of living pressures, Labor leader Anthony Albanese said.

"When people have a secure roof over their head, they have that sense of belonging, that sense of ownership, that sense of security and Labor's determined to do all that we can to give people a more secure future," he told reporters at a home in Gosford.

The Reserve Bank is widely expected to lift the cash rate at its board meeting on Tuesday for the first time in almost 12 years.

Sitting in her Gosford kitchen, Lydia Pulley told the opposition leader about her household's struggle to make ends meet.

On a combined income of $92,000, the rising costs of living and rental stress have squeezed her and her partner's finances and made saving for their house almost impossible, with the median house price pushing $1 million.

"It's becoming harder to buy basic things you need at your house, basic sanitary items, food shopping, fuel," she told AAP.

"There is no other plan in place that I feel that is going to fit this particular group of individuals, young people, who need to get into the housing market."

The Liberals were quick to attack Labor's proposed scheme and said it would allow the government to profit off people's houses.

But their criticism was blunted when an old interview resurfaced where the now prime minister pushed for a shared equity scheme.

"Shared equity mortgages are a really good opportunity if you do get into mortgage stress," Scott Morrison said in 2008 when he was opposition housing spokesman.

"You can reconsolidate your mortgage, you can go on a situation where the bank take effectively a portion of equity in your property and that way you can reduce your payments."

Labor campaign spokesperson Jason Clare said it proved Mr Morrison had backflipped on his own support of Labor's policy on the eve of an election.

"Scott Morrison, instead of doing a backflip worthy of (gymnast) Nadia Comaneci, you should be backing hard working Aussies who want to own their own home," he said.

But Assistant Treasurer Michael Sukkar defended the prime minister's historical comments and said they referred to bank and private sector schemes instead of government-run programs.

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