Shafaqna English- Many Muslim Australians are still barred from federal housing assistance, according to an article published by The Conversation.
The Albanese government has introduced a series of housing reforms aimed at helping first-home buyers enter the property market. These include expanding the Home Guarantee Scheme, introducing the Help to Buy shared-equity program, and pursuing broader housing affordability measures.
Last October, the government removed income caps from its First Home Guarantee scheme, allowing all eligible first-home buyers with a 5% deposit to apply. The policy enables buyers to purchase a home without paying lenders mortgage insurance, reducing one of the biggest financial hurdles to home ownership.
However, the scheme is only available through a panel of approved lenders, and none of them offer Islamic home finance products.
For many Muslim Australians who follow the Islamic prohibition on riba, or interest, this creates a difficult choice between accessing government assistance and adhering to their religious beliefs.
Australia’s Islamic finance providers generally do not operate under this model. As a result, none currently holds an ADI license, despite being regulated by the Australian Securities and Investments Commission and holding Australian credit licenses.
Australia’s attempt to establish a fully fledged Islamic bank also encountered difficulties. Islamic Bank Australia received a restricted banking license in 2022 but surrendered it in 2024 after reportedly struggling to raise sufficient capital and attract customers. The institution subsequently rebranded as Islamic Money Australia.
Researchers and advocates argue that the exclusion of Islamic finance from government-backed housing programs reflects a broader failure to incorporate Islamic financial products into Australia’s legal and regulatory framework.
Source:IQNA