Concetta Fierravanti-Wells (NSW, Liberal Party) Share this | Hansard source

Yes, absolutely, Senator. Yes, interest rates are part of the equation and the Howard government will always strive to maintain economic settings to keep interest rates low. The decline in affordability is further accelerated by the array of state taxes and charges. The act of paying for a new home is just the tip of the iceberg when it comes to the costs that are faced by new homebuyers. Families are hit by a raft of property taxes, stamp duties, infrastructure levies and other development costs levied by state and territory governments, all on top of the purchase price. I think it is time that Labor state and territory governments abandoned the ill-conceived notion of ‘urban consolidation’—a byword, which has now become fact for loading more people on to existing services—and removing the financial shackles from new homebuyers. And why would they? We do not have the power to drop state taxes. The only people who can compel state Labor governments to drop state taxes are their own voters. We cannot make the New South Wales government or the Western Australian government reduce stamp duties. They get an absolute bonanza out of state duties in New South Wales.

If those opposite really are concerned about housing affordability, perhaps they ought to impose on their state counterparts to look at the raft of taxes, the stamp duty and, more importantly, the supply of land. That, in the end, is what is important here. It is simple: if you restrict supply the price goes up. It is all very well for those opposite to bleat; why don’t they take some time and make some effort and try to get their state counterparts to do something about this and not just talk about it?