Tyron Whitten (WA, Pauline Hanson's One Nation Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Minister Gallagher. Minister, at the last sitting week, I put it to you that Labor was putting young people at risk of mortgage stress with the five per cent deposit scheme, given all the economic indicators pointing to a rate hike. The economists agree with me after the latest disastrous inflation numbers driven by housing. Now they're saying there will be up to two rate rises in 2026, just in time for Labor to start cutting jobs. Will Labor now accept that they have put people, especially young people, at risk of mortgage stress with their housing Ponzi scheme?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I thank the senator for the question. The government are very proud of the housing policies that we've put in place to deal with the challenges on housing supply because of, again, what we inherited from those opposite after a decade of ignoring housing, having nothing to do and nothing to say, and allowing housing affordability to be ignored—

Opposition Senators:

Opposition senators interjecting—

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

You're building fewer houses. Your scoreboard's terrible. It's horrendous.

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

Senator Bragg! I don't think I need to have to call a whole list—

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

Okay, I'll go back to—

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

You're not in a debate with me. There have been a number of interjections across the chamber from the left. You need to listen respectfully and quietly.

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I'm sure the senator has read the Treasury modelling and the Treasury evidence around the five per cent deposits. We don't apologise for looking at every single—

Opposition senators interjecting —

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

I remind the chamber that this is a question from Senator Whitten. The interjections from the opposition are disorderly and rude to Senator Whitten. He has the right to have his answer heard in silence.

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

Probably relevant for this discussion as well is the fact that construction cost inflation has fallen under this government. From a high under the coalition, when it was running annually at 17 per cent, it has now fallen to 2.1 per cent under Labor. There are more first home buyers under Labor. We've directly helped 197,000 Australians into homeownership sooner. That's three times more than the former government. Housing approvals are up 15 per cent compared to a year ago, with townhouses and apartments up 55 per cent compared to a year ago. New home starts are up, new dwelling commencements were up 9.2 per cent in the March quarter and, overall, over 520,000 new homes have been built under the Labor government. This includes more than 5,000 social and affordable homes delivered with federal government investment compared to—how many?—373 over a decade by those opposite, because they didn't care about social and affordable housing. That is the progress we are making. We will use every lever available to us to ensure that everyone has access to secure and sustainable housing. (Time expired)

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

Senator Whitten, first supplementary?

Tyron Whitten (WA, Pauline Hanson's One Nation Party) Share this | Link to this | Hansard source

We all remember the GFC. We all remember the destruction that was brought down on the world economy by subprime lending. Now APRA have had to step in. For the first time, they have had to introduce debt-to-income limits on lending to slow down the issuing of high-risk debt that is being pumped by Labor. Does Labor accept that APRA's actions are a result of Labor pushing high-risk subprime lending on Australia's most vulnerable borrowers?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

We support the responsible lending obligations and have been part of arguing—including post the period of time that you talk about, the global financial crisis—to make sure that those obligations for lenders are in place. We have a strong, well-run banking system in this country. The banks and the lenders take their obligations seriously around ensuring responsible lending, and that's an important part of the regulators' responsibility. Our job is to make sure that we're doing what we need to do under the policy arrangements that we have on our housing agenda and to make sure that all those arrangements are in order. We believe they are, and I commend the housing minister, Minister O'Neil, for her work and for all the effort and energy that she brings to this portfolio, which, as we said, had been ignored for almost 10 years under those opposite.

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

Senator Whitten, second supplementary?

Tyron Whitten (WA, Pauline Hanson's One Nation Party) Share this | Link to this | Hansard source

APRA has had to put the brakes on Labor's subprime lending scheme.

Hon. Senators:

Honourable senators interjecting—

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

I'm sorry. Order across the chamber! Senator Whitten, could you start again. I'll ask that the clock be set again.

Order! Minister Wong, I have asked the senator to start his question again.

Tyron Whitten (WA, Pauline Hanson's One Nation Party) Share this | Link to this | Hansard source

APRA has had to put the brakes on Labor's subprime lending scheme. Inflation is rocketing. Economists are seeing rate rises in the future. Labor has been lured into a hyperinflated housing market, taking out mega mortgages based on Labor's false promises and outlandish predictions. Has Labor modelled the default rates on the five per cent loan scheme in the event of two rate rises in 2026, and how much will this cost the Australian people?

Government senators interjecting—

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

Order on my right!

Minister Wong, I have Senator Gallagher on her feet.

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I reject the assertions that have been put in the question. I make that clear. In relation to whether we work with the banks and understand what's happening in the housing market, yes, we do. If you look at some of the comments that the bank CEOs made to the House standing committee just a week ago, you'll see that they've made comments in this regard, including, from the Westpac CEO, 'I don't think the first home buyers scheme is the driver of housing prices,' and, from the CEO of CBA, 'I know Treasury did some'—

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

It helps them with market share. How naive are you? It helps the big banks.

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

Minister Wong?

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

President, if Senator Bragg can't contain himself, perhaps he should leave.

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

I quite agree, Senator Wong. I have called you to order. Senator Bragg. You've apologised. You've kept interjecting.

You are answering me back now. We're not in a debate. If you can't---

Senator Colbeck! Senator Bragg, if you can't listen in silence, you can leave the chamber. Minister Gallagher, do you wish to continue?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

Indeed. I should remind the chamber that lending rules and serviceability requirements remain the same under this scheme. Five per cent deposits help first home buyers get a home sooner and save tens of thousands in mortgage insurance. They do not increase how much a person can borrow. So I reject the question that was put.