Susan McDonald (Queensland, National Party, Shadow Minister for Resources and Northern Australia) | Link to this | Hansard source

My question is to the Minister representing the Prime Minister, Senator Wong. Minister, of Australian first home buyers who entered the market under Labor's expanded five per cent deposit scheme, how many have fallen into negative equity since Labor handed down its May budget?

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

Thank you for the question. I think I did get this question from the Liberal Party yesterday, but I'm very happy to answer it again. I say to you that the five per cent deposit scheme has helped many thousands of Australians into the market who would not otherwise have entered the market. The advice I have is, firstly, that most people come into the scheme with more than a five per cent deposit; and, secondly, about 70 per cent are ahead on their repayments and 29 per cent are on time. So that obviously tells you that a very small number are in arrears. In fact, the advice I have is that out of more than 200,000 guarantees issued, only 13 have been paid out. In fact, I did look at this after the discussion previously. The evidence from CBA and Westpac is that the performance of that cohort over the last few years is actually better than the average when it comes to where repayments are. I note that the RBA governor in June, last month, said that at the moment practically no-one is in negative equity. It's absolutely minuscule, and it has actually declined over the last year or so.

So I would say to you, Senator, that your coalition parties have so little that you can agree on other than that you don't want change and that it's in your interest to frighten people. I would actually say to you that I don't think it is in your political interest, because the more pessimistic people are, I suspect, the more they look to Ms Hanson and not Mr Canavan. But that's a strategic decision for you—sorry, Matt. (Time expired)

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

Senator McDonald, first supplementary?

Susan McDonald (Queensland, National Party, Shadow Minister for Resources and Northern Australia) | Link to this | Hansard source

Minister, if the government doesn't actually know how many first home buyers are now in negative equity, how can you possibly claim that Labor's housing policy has been a success?

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

I don't think that the figures I outlined to you match your question. In fact, what the figures I outlined suggest or indicate is actually that this is a very successful policy that has enabled Australians to get into the housing market to own their first home. We think that's a good thing. I've also spoken about where people are in terms of arrears and in fact that this cohort, these Australians who have had the opportunity to get into the housing market, are actually performing slightly better than average when it comes to their repayments. So I find your question unnecessarily alarmist, and I think it really displays a philosophical position that you don't actually think government should be helping people enter the housing market.

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

Senator McDonald, second supplementary?

Susan McDonald (Queensland, National Party, Shadow Minister for Resources and Northern Australia) | Link to this | Hansard source

Minister, does the Prime Minister accept that Australians who relied on Labor's promises to buy their first home are now paying the price through negative equity, understanding that you don't seem to understand that being ahead on your repayments is not negative equity? Negative equity is when your house is worth less than what you owe on it.

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

I would start by saying this: when in doubt, try and manufacture a scare campaign. That's what happens when you don't do the work on your policies, when you don't do the work on tax policy, on wages policy and on economic policy, and that is what you have been doing. What has been interesting this week has been to observe the way in which those opposite have not actually been able to engage with the centre of the tax policies. What you've been trying to do is engage in scare campaigns which have no foundation, and, Senator, they have no foundation, as I have outlined in my primary answer to you. The difference between us and you is that we actually want more Australians to own their own home. We want more people to own their own home. I know that you on that side find that a very difficult proposition, but I actually think it's a motivation most Australians share. (Time expired)

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

I further advise the chamber that Senator Payman has passed her question to Senator David Pocock.