Jane Hume (Victoria, Liberal Party, Shadow Minister for Employment and Industrial Relations) | Link to this | Hansard source

My question is to the Minister representing the Prime Minister, Senator Wong. Yesterday, the Prime Minister dismissed warnings of higher rents as an 'absurd justification'. This morning, the Minister for Housing, Minister O'Neil, claimed that the impacts of Labor's taxes on rent rises would be very small, and Assistant Minister Hill questioned the motives of real estate agents who are speaking out. Treasury says the impact of Labor's taxes on housing will be just $2 a week. Minister Butler said, 'We are very confident in our forecast.' Will the minister guarantee that no Australian renter will pay more than $2 a week more because of Labor's increased taxes on housing?

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

What I can say is this. I can absolutely guarantee that our changes are motivated by a desire to bring on more housing supply. And I can guarantee that your opposition to the government's changes would have resulted in less housing supply in this country. I think we can all see what the opposition is doing, and what I would say is that I think we know some of the reporting has not been accurate. I would refer you to the clarification both from the NAB and from Ray White real estate today.

Let's again look at the facts. The budget made no change for people who already negatively gear property. I remind the senator who supports higher taxes and larger deficits, Senator Hume, that the arrangements that were in place up to budget night remain grandfathered in. Secondly, I would make the point that negative gearing and the capital gains tax discount of 50 per cent can still be used for new builds. So, when people choose to invest in housing, they will be investing not just in their future wealth and assets but also in the assets of the nation.

The ABS, the Australian Bureau of Statistics, have pointed out that these settings have already made a difference. There are more investors borrowing to build new homes than ever before, and there are fewer investors competing with first home buyers for existing homes. In the June quarter there was a 27 per cent increase in investor loans for new builds and a 20 per cent increase for construction loans. What all of this means is that we are already seeing the market responding to the incentive for additional supply. (Time expired)

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

Senator Hume, first supplementary?

Jane Hume (Victoria, Liberal Party, Shadow Minister for Employment and Industrial Relations) | Link to this | Hansard source

The Minister for Housing told Australian renters not to listen to politicians. I don't think that's going to be a problem. I'm pretty sure Australians stopped believing the housing minister and the Prime Minister some time ago. Under Labor, median capital city rents have risen from $470 to $690 a week. Was Minister O'Neil really warning renters not to believe her own government's claims that these tax changes will cost them just $2 a week?

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

Senator Hume talks about people not listening to politicians, and I wonder if people were supposed to listen when she said that tax cuts were 'egregious' or not. Were people supposed to listen when she went to the last election advocating for higher taxes? Were we supposed to listen or not when you advocated for higher taxes and lower wages and higher deficits? Were we supposed to listen? I'm all ears, Senator, as to whether or not we were supposed to listen to you when you said all these things over and over again. We are committed to bringing more housing supply into the market because that will help renters and that will help first home buyers, and those policies are all about dealing with the lack of housing supply that occurred under the coalition. (Time expired)

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

Senator Hume, second supplementary?

Jane Hume (Victoria, Liberal Party, Shadow Minister for Employment and Industrial Relations) | Link to this | Hansard source

Yesterday, the Minister for Housing boasted that Labor has the boldest housing policy in 70 years—how very Yes Minister. Rents are up already by $220 a week under Labor. They're up 29 per cent in the Treasurer's own electorate, and experts are warning the Prime Minister's new taxes could push rents even higher. Minister, is 'bold policy' just Labor's latest excuse for making renters poorer?

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

Senator, this government is about bringing more new housing supply into the system. This government has also increased rent assistance by more than 50 per cent, the largest increase in three decades, Senator, which is not something you have ever advocated for nor something you have ever supported, as far as I can see. So, far from being the champion of renters, I don't know that anybody would think of Senator Hume as the champion of renters. I think people would know Senator Hume is the champion of lower wages for working people. So don't come in here and pretend you are somehow a champion of renters when we know that the very wages that so many families in this country rely on—you would advocate for lower wages. Well, that is not Labor's way. What we will do is keep working to bring more housing supply into the market.

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

Thank you, Minister. Order! Senator Hume, I called you personally about three times. I called order, and you completely disrespected me.

Jane Hume (Victoria, Liberal Party, Shadow Minister for Employment and Industrial Relations) | Link to this | Hansard source

I'm sorry.