Matthew Canavan (Queensland, Liberal National Party) | Link to this | Hansard source

My question is to the Minister representing the Prime Minister, Senator Wong. Last weekend, Sydney recorded its lowest auction clearance rates since April 2020—the very start of the pandemic—falling below 50 per cent. Melbourne recorded its lowest clearance rate since 2021, during the world's longest lockdowns. Will the minister admit that Labor's tax changes have shattered confidence in our property market, to the point where even first home buyers are staying away?

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

Our changes are about backing first home buyers. I remind the Senate that house prices have increased around 400 per cent since 2000, and 58 per cent since 2020. That means first home buyers have found it much harder to enter the market; senators who engage with the community will know that that is the case. Increasingly, owning your own home has been out of reach for too many Australians. We are determined to fix that. We have been determined to fix that because we know the status quo is not sustainable.

I make a couple of points. Many factors, not just tax settings, influence the housing market. I note that auction clearance rates were declining before the budget. A number of factors influence the housing market. I refer again to the Treasury forecasts, which assume house prices will continue to grow and that the changes in the budget mean that house prices will be around two per cent lower than they would otherwise have been. I note Senator Bragg himself has said that house prices are too high; I note he said that. We are seeking, through the tax changes that we have made, to level the playing field when it comes to first home buyers, because we want more young Australians to get their own home.

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

Senator Canavan, first supplementary?

Matthew Canavan (Queensland, Liberal National Party) | Link to this | Hansard source

Minister, Brisbane's auction clearance rates are down from 53 per cent last year to 40 per cent, and Adelaide's are down from 64 per cent to 49 per cent. Has the government modelled the impact that falling property values and declining confidence in our property markets could have on household wealth, bank lending practices and the broader Australian economy?

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

I again would make the point that many factors influence the housing market, and I'd refer back again to what Treasury has said. I know you have an interest in trying to find a political point. The reality is the housing market was broken. Anyone who spoke to engage with young people who were trying to get into the market would know that.

We want people to have the same opportunities so many of us have had to own our own home. What we have done is change the tax system so that people have more of that opportunity. I would again make the point that Senator Bragg himself said—

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

Senator Canavan, a point of order?

Matthew Canavan (Queensland, Liberal National Party) | Link to this | Hansard source

It's on relevance, with less than 20 seconds left. The question went to whether the government has looked at the risks of this happening, not the statements of others.

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

The minister is being relevant to your question. Minister, please continue.

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

In fact, I think I responded to that directly. I think I did respond to it directly—

Matthew Canavan (Queensland, Liberal National Party) | Link to this | Hansard source

No, you didn't. Have you modelled?

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

I know that you want to say the sky is falling because that's what desperate right-wing opposition parties do, but the sky is not falling. (Time expired)

Matthew Canavan (Queensland, Liberal National Party) | Link to this | Hansard source

Minister, yesterday your colleague Minister Plibersek claimed that hundreds of thousands of Australians have entered the housing market thanks to the government's five per cent deposit scheme. How many of those Australians are now in negative equity because of the government's broken promises, its housing tax changes and the consequent falling confidence in property markets?

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

Ms Plibersek was right. The figures I have here are that some 260,00 first home buyers with five per cent deposits have been helped into the system. They are many thousands of Australians who would not have entered the property market if not for what the Labor government has done, which you opposed. You actually are opposed to us trying to get more young people into the market. It is quite remarkable that those opposite don't want more young Australians to have the opportunities that all of you have had—or so many of you—to own your own home. If you sit in this place, you can see that the coalition really is averse to government trying to ensure that more young Australians own their own home. I don't think Australians are where you're at.