Andrew Bragg (NSW, Liberal Party, Shadow Minister for Housing and Homelessness) Share this | Link to this | Hansard source

My question is to the Minister representing the Prime Minister, Senator Wong. We are now one month from when your government opened up the five per cent deposit scheme to every first home buyer, and the effects are clear. New numbers released today by data house Cotality reveal that the pace of growth in Australian home values has accelerated by 1.1 per cent—the fastest gain in years. The price hike was steepest amongst the entry and middle parts of the market, which rose 1.2 and 1.4 per cent respectively. Why does your government think it's a good idea to make entry and middle level houses less affordable for first home buyers?

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

Can I welcome the Speaker to our parliament. We'll try and be polite now, sir. Senator Bragg, we fundamentally don't agree with the proposition you've put forward—that somehow it is a bad thing to assist first home buyers through this deposit scheme. Of course, that is not the only thing the government is doing. The government also recognises the importance of increasing supply, which is why we have a very ambitious addition to housing supply as part of our policies.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Bragg, a first supplementary?

Andrew Bragg (NSW, Liberal Party, Shadow Minister for Housing and Homelessness) Share this | Link to this | Hansard source

This entry level house hike was entirely predictable. Indeed, the Prime Minister himself admitted that Treasury advised Labor that their changes would send house prices up, and the RBA governor told Senate estimates that the scheme would not only send up house prices but also result in higher repayments for first home buyers. Why does the government knowingly implement policies that make housing less affordable for first home buyers?

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

The answer is we don't. The five per cent deposit was the subject of advice, and the facts are that lending rules and serviceability requirements stay the same, and the Treasury advice indicated the impact on house prices would be minor. You'll recall, also, that this is only one part of a comprehensive suite of housing policies including the addition of supply.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Bragg, a second supplementary?

Andrew Bragg (NSW, Liberal Party, Shadow Minister for Housing and Homelessness) Share this | Link to this | Hansard source

Since your government expanded the scheme on 1 October, entry level property has almost doubled the rate of other properties. Cotality's research director Tim Lawless has pinned this on your policy saying, 'stronger housing demand at the lower price points is likely a culmination,' of multiple factors, including, 'what is likely a pickup in first home buyers taking advantage of the expanded deposit guarantee.' Can you explain why your government has— (Time expired.)

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

We are helping more Australians into their own home. We are training more tradespeople. We are kickstarting construction. We are helping first home buyers. In fact, my recollection is that we have seen building approvals up over the last year and commencements also higher than they were a year ago which is an indication that the policies that we are putting in place, which were opposed by you, are having an effect on the market.

Sue Lines (President) Share this | Link to this | Hansard source

I'll just advise the chamber that Senator Babet has given his question to One Nation.