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. The government has conceded that its higher housing taxes will now reduce housing supply by 35,000 dwellings. How will building fewer houses help younger people?

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

That is untrue, Senator Bragg. As a result of the government's policies, there will be 35,000 more houses built than in the absence of the government's policies, including those in the budget, and you know that. What I would also say is that you understand there are two issues here. One is the composition of those who own homes, and one is the number of homes. Not only are we adding to supply; we are also determining through the changes we are making—and you would understand this—a different composition in the housing market because we want more owner-occupiers owning homes. It's as simple as that. You know that the way to ensure that we get first home buyers into the market is to level the playing field for them. The problem with your position is that you are insistent that they are not entitled to a level playing field. That is the position of those opposite.

We have been clear that the impact of our tax and other housing policies will increase housing supply by at least 30,000 over the medium term, including through the $2 billion Local Infrastructure Fund, which will support up to 65,0000 homes. In addition, the tax changes that we have announced will see 75,000 additional owner-occupiers over the decade. That is the position that the government has set out in the budget. That is what Treasury is clear in its advice on. That is the effect. The reality is that you on that side are happy with the status quo. Young Australians are not happy with the status quo. (Time expired)

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

Senator Bragg, first supplementary?

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

The Prime Minister has used negative gearing for decades to build a property portfolio. Why is he cutting off this opportunity for younger people?

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

Senator Bragg, you understand that the policy that was announced will enable people to still use negative gearing when they invest in a new build. But we have a situation where housing prices have diverged from incomes and have risen 400-plus per cent between April 1999 and April 2026, twice as fast as average incomes have risen. Now, you might think that's alright, Senator. This is about housing affordability.

Hon. Senators:

Honourable senators interjecting—

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

Minister Wong, please resume your seat. I'm waiting for order. Senator Bragg?

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

On a point of order on relevance, President, the question was about the Prime Minister cutting off this opportunity for younger people.

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

The minister is being relevant to the question, and, if there's silence in the chamber, I will be able to hear the minister more clearly.

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

I began my answer with a very clear answer, Senator, which is that negative gearing is still available to those who invest in a new build. But the fact that you made the interjection on relevance shows you don't understand the problem, because what I was reading out is the problem. That is the problem. When you have a 400 per cent increase in housing values and they are decoupled to the extent that they are from income growth, then you lock young people out of the market. That is the problem we are seeking to fix.

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

Senator Bragg, second supplementary?

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

This is a very simple question. Will the minister guarantee to young Australians that Labor's higher taxes will result in more homes being built?

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

The budget papers make it very clear that this package adds to housing supply. I want to give you a quote: 'Today it's time to be honest. The tax system is screwing over young Australians. Instead it favours well-off, established interests against those trying to get ahead.' You know who that was? Your shadow treasurer.

I ask that further questions be placed on notice.