Maria Kovacic (NSW, Liberal Party, Shadow Assistant Minister for Women) | Link to this | Hansard source

My question is to the Minister representing the Prime Minister, Senator Wong. Before the 2022 election, Prime Minister Albanese promised Australians cheaper mortgages. Instead, the reality facing Australians is that they are taking out bigger mortgages, making bigger repayments and in many cases watching the value of their home fall. Some are now even facing negative equity. The average mortgage has surged to $735,000, up $75,000 in just one year, under the Albanese government. Minister, how has this government managed to leave Australians borrowing more than ever to buy a home only to leave them at risk of negative equity?

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

I thank Senator Kovacic for her question. I do recall the Prime Minister saying that. My recollection—I'll check if I'm wrong—is that that was when we were announcing our Help to Buy shared-equity scheme. The specific purpose of that plan is to enable workers to gain access to homeownership and to provide assistance through government so that more people can enter the market without having to deal with mortgage insurance.

I'm sure you'd be very happy to know that some 40,000 Australians have saved up to 40 per cent of the cost on their own home as a result of that program—the Help to Buy shared-equity scheme. As a result of that plan, which was announced in the 2022 election and delivered by a Labor government, 40,000 workers have saved up to 40 per cent on the cost of their home. We on this side think it is a good thing to have more Australians owning their own home. I appreciate that those opposite have a different view. They think the status quo is just fine, and I would invite them, as I did yesterday, to talk to so many Australians about where the housing market was prior to this government and the extent to which young Australians, first home buyers, were locked out of the market.

We on this side do not think that was acceptable, so we have acted unashamedly, just as you have blocked us unashamedly. But we have prevailed, and legislation has passed through this parliament which is ensuring that first home buyers get a fair crack—a level playing field—so they can get their foot into the housing market, which we think is a good thing for not only them and their families but the country.

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

Senator Kovacic, first supplementary?

Maria Kovacic (NSW, Liberal Party, Shadow Assistant Minister for Women) | Link to this | Hansard source

Housing finance experts are warning that Labor's housing tax changes are discouraging investment at the very time Australia needs more rental housing, with Macquarie estimating that new lending flows are tracking 20 to 30 per cent below a year ago. Minister, why is Labor driving housing investors out of the market, reducing the supply of rental homes and making rents for Australians even higher?

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

We want people to own their own home. That's what we want, and that's what we've acted on. One aspect of your question, Senator Kovacic, is correct, and that is that we have said that we don't think that investors deserve the same effective subsidy from taxpayers that previously existed. We don't think that it is fair to have a young Australian family trying to get their first home competing with an investor who's trying to get their fifth rental property, where it is the investor who is effectively subsidised by taxpayers. We do not think that is fair. We don't think it's good economics. Investors can still gain access to—

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

What about new builds? Why can't you add new builds? Why do you hate new houses?

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

Senator Bragg, I've called you three times. Order! Stop the banter across the chamber from both sides. Minister Wong, please continue.

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

I found Senator Bragg amusing, and now I've lost my train of thought.

Paul Scarr (Queensland, Liberal Party) | Link to this | Hansard source

That was his cunning plan!

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

It was his cunning plan; that's right. It made me laugh, and I've forgotten my train. The point is that we want more Australians to own their own home and we've acted accordingly. (Time expired)

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

 Senator Kovacic, second supplementary?

Maria Kovacic (NSW, Liberal Party, Shadow Assistant Minister for Women) | Link to this | Hansard source

Minister, I wonder how many of those 40,000 you referenced are now in negative equity. Why should Australians keep paying the price for the Prime Minister's failed housing policies—bigger mortgages, bigger repayments, higher rents, falling home values and fewer houses?

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

Thank you, Senator Kovacic. I referenced this yesterday—I think it was in response to Senator Bragg, but it might have been Senator McDonald; I can't recall—and I made the point that, earlier last month, the RBA governor did respond to a question about negative equity. She said:

At the moment, practically no-one is in negative equity. … it's absolutely miniscule.

…   …   …

… and it has actually declined over the last year or so.

Now, that was about three or four weeks ago. I would say that I know that those opposite, the right-wing parties, actually don't want to deal with the fundamental issue of how you get more first home buyers into the market. They can no longer argue about the tax policy, so they're resorting to another scare campaign. And that has really been demonstrated all week—that all they have is scare campaigns, fear campaigns, assertions which are not true or are grossly overexaggerated and— (Time expired)