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

My question is to the Minister representing the Prime Minister, Senator Wong. Does the government want less private investment in Australia's housing market?

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

I thank Senator Bragg for the question. The government wants as many houses built as possible, which is why the government has put in place our $47 billion Australian housing plan, investing eight times more in housing than the coalition did in a decade. It is why the government has now successfully passed legislation through the Senate that works to level the playing field for first home buyers by limiting negative gearing to new builds and by the reform of capital gains tax, which, as you and I have discussed on multiple occasions, Senator Bragg, will ensure that there are 75,000 more first home buyers over 10 years. That's why we're investing $6.2 billion in local infrastructure for housing—again, 50 times what the coalition invested in enabling infrastructure—and why we have the five per cent deposit scheme helping more than 260,000 first home buyers, more than four times as many as the coalition helped in government. It is why we have the Help to Buy shared equity scheme, which is saving 40,000 workers up to 40 per cent off the cost of their own home. It is why we have delivered 55,000 social and affordable homes, when the Liberal Party in government built 373.

So it is very clear, Senator, that we want more investment in housing, we want more housing supply and we want to level the playing field for first home buyers, which is why we are pleased that the legislation has just passed the Senate—legislation you voted against. I remind you, Senator Bragg, that you have again voted against tax cuts for working people. Tax cuts for working people is obviously something you don't support.

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

Senator Bragg, first supplementary?

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

Thank you very much for that answer. Is the minister aware that industry participants say that SMSFs can account for up to 30 per cent of pre-sales in apartment developments?

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

I didn't hear some of the question because of the interjections, but I assume you were talking about limited recourse borrowing arrangements. I think you and I spoke about this yesterday or the day before, Senator. I made the point that less than 10 per cent of self-managed super funds have one of these arrangements for residential property and, of course, existing arrangements will be unaffected. I think I may have also made the point that limited recourse borrowing arrangements are less than one per cent of total residential property borrowing and less than half a per cent of new—

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

Senator Bragg.

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

I have a point of order on relevance. The question was very clear in seeking whether the minister was aware that industry says that up to 30 per cent of new pre-sales can be supported by SMSFs.

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

Senator Bragg, the minister is being relevant to your question.

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

Senator, I was giving you the percentages that I'm advised about total residential property borrowing and new residential borrowing. I was also going to make the point that only about 4,000 new self-managed super fund borrowing arrangements occur each year on average. I know, because you can't actually defend the position you have, you're interested in having another argument and trying to make this a much larger issue than I think these statistics demonstrate that it is. (Time expired)

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

Senator Bragg, second supplementary?

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

If SMFSs are helping finance new housing, why is the government driving that investment out of the market?

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

As I said yesterday, these are a very small number of arrangements. The logic of them and of the amendment passed is the protection of superannuation savings. People are still able to purchase. We are simply banning these particular borrowing arrangements. I know, Senator, that you want to try and make this the issue because you want to try and avoid answering the question about why it is you don't want more first homeowners over the next 10 years and why you don't want 13 million Australians to be given a tax cut.