Peter Whish-Wilson (Tasmania, Australian Greens) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Cormann—no proverbs today. In a piece in today's Sydney Morning Herald titled 'How Turnbull can kill stamp duty and produce a budget to remember', Peter Martin looks at the Greens' policy to swap stamp duty for land tax. He cites Treasury papers that show how stamp duty is dollar for dollar the most destructive tax, while land tax is the most efficient. He says:

… a stamp duty for land tax swap could boost the economy by a massive 82c for each dollar swapped. There's no bigger benefit imaginable from rejigging tax.

This is also backed by the Grattan Institute, ACOSS, ACCI, the Australian Industry Group and a whole raft of economists across the country because it provides productivity, investment, housing and infrastructure benefits. Will the government back the Greens' policy and work with the states via a Commonwealth loan to deliver a stamp duty for land tax swap?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

The short answer is: the government will not back Greens policy. But the government of course will continue to work with the states on sensible tax reform to make our tax system more growth friendly so that we can continue to build a stronger, more prosperous economy where every Australian has the best possible opportunity to get ahead.

Stephen Parry (President) Share this | Link to this | Hansard source

Senator Whish-Wilson, a supplementary question.

Peter Whish-Wilson (Tasmania, Australian Greens) Share this | Link to this | Hansard source

Speaking of opportunity, a two-bedroom, one-bathroom house in Newtown recently was listed for $1.2 million at auction and sold for $2.6 million. Since this government came to office, the median house price in Sydney has risen from $670,000 to just under $1 million. That means the cost of a 10 per cent deposit has gone up by over $33,000 on your government's watch. Does your government accept any responsibility, through its policies or lack of action, for contributing to the Sydney housing bubble?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

As Senator Whish-Wilson would be well aware, the price of anything is a function of demand and supply. Where demand exceeds supply, prices go up. Of course, the best way to ensure that anything that is too expensive becomes more affordable is to increase supply, and, indeed, state governments around Australia do have a lot of the levers to ensure, through planning and other arrangements, that supply of land in particular is appropriately increased.

Stephen Parry (President) Share this | Link to this | Hansard source

Senator Whish-Wilson, a further supplementary question.

Peter Whish-Wilson (Tasmania, Australian Greens) Share this | Link to this | Hansard source

A very short answer, Senator Cormann. Young people in this country are being completely screwed by the Australian housing market. The amount they need for a deposit is going up every month by much more than they could possibly save. Given that a home deposit in places like Sydney is skyrocketing $850 every month, what assurance can you give first home buyers, especially young Australians, that you will bring policies into this budget to stop runaway increases in the cost of putting a roof over Australians' heads?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

The assurance I can give to young homebuyers across Australia is that, under a coalition government, they will have the best possible opportunity to get ahead and to get a good and better paid job as a result of the economic policies of the coalition. Our economic policies will drive stronger growth and a more prosperous economy where people around Australia can get better jobs and better paid jobs—and, of course, that is a key important component to the whole issue that Senator Whish-Wilson raises.

In relation to housing affordability more generally, you would be aware that the Treasurer is doing some important work in this area, including in cooperation with the states, and that the Treasurer has already flagged that the government will have some more to say about that in the budget.