Andrew Willcox (Dawson, Liberal National Party, Shadow Assistant Minister for Manufacturing and Sovereign Capability) Share this | Hansard source

():  Two hundred and twenty thousand is a big number, a big number that the Albanese Labor government is now on the hook for. I'm glad the member for Calwell is acknowledging the housing crisis that Australia is facing, because—make no mistake—housing in this country is in crisis.

After four years of Labor, housing has become a crisis, and it's getting worse. Demand has grown rapidly, while supply has fallen sharply. While the government pats itself on the back for backing in loans for kids of millionaires, more Australians are finding themselves homeless. Families are living in tents. The number of people sleeping rough is growing. Young Australians trying to find their way in this world are staring down the barrel of a lifetime of perpetual renting. Entry-level homes are now 70 per cent more expensive than they were five years ago.

Lower deposit rates and greater buying power for first home buyers will not fix the housing crisis. Labor must fix the supply-and-demand imbalance. Labor needs to build more homes quickly and efficiently. This means cutting red tape and green tape to get approvals flowing and construction happening. It means giving people a reason to build and a reason to invest. Labor must open up the supply and urgently put downward pressure on the number of people coming into this country, who then compete for the shrinking number of homes that are available. Five per cent doesn't sound like much, but, with the median house price in Australia having now surpassed $1 million, you still need a $50,000 deposit. With rent spiralling and the cost of living rising, how is anyone on a lower income or even an average income meant to save 50 grand? If this imbalance isn't corrected fast, it won't be long before a five per cent deposit catches up to what a 20 per cent deposit is today.

Since the government expanded the five per cent deposit scheme, last October, the average house price has continued to climb, and interest rates are again heading north. The scheme has done nothing but fuel demand and turbocharge property prices, making it even harder to get into the market. With inflation surging and interest rates continuing to rise, many participants in the scheme risk falling into mortgage stress. If they default, the government and, ultimately, the taxpayer have the liability as guarantors. Worse still, these buyers could be locked out of the market for good, unable to access their first home concessions again in the future, while struggling to recover financially. Some are lucky—they have the bank of mum and dad for a loan or even a cash gift to get them into the market, but what about those who don't? What about those Australians who dream of homeownership but do not have that safety net? As prices continue to soar, that $50,000 deposit will need to increase. And what about those who were once homeowners but have fallen off the property ladder—perhaps someone who has gone through a life-changing divorce or someone who has little left? First home buyer schemes don't help those people.

It is clear the Labor government is struggling. They're having Treasury review the numbers on capital gains. They're not doing it in the hope of opening up supply; they're simply looking for extra tax revenue. Let's be honest about the impact of reducing the current discount. In a market where rents are rising and returns remain strong, investors will have even less reason to exit and to sell up to potential homeowners. If the goal is to free up existing housing stock, policy should encourage turnover, not discourage it through heavier taxation.

We need homes for every Australian. We need housing policy that creates the conditions for people to enter the market and stay there. We need a housing policy that accelerates approval, increases building productivity and incentivises private investment. Housing policy must be more than writing cheques and announcing big numbers. It must focus on getting the supply right and ensuring it keeps pace with demand. You can't fix a housing shortage by giving government guarantees instead of building houses. Labor needs to get the supply right, get the demand right, get the houses built and get homes for all Australians.

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