My question is to the Minister representing the Prime Minister, Minister Wong. New analysis by Aussie Home Loans shows that 20 per cent of Australians who bought a home in the past three years are now trapped in mortgage prison, facing higher repayments, falling property values and, for some, negative equity. What does the Prime Minister say to Australians who bought a home under Labor and are now financially worse off—'We know you're in pain'?

The first point I'd make is that we know that the problems in the Australian housing market are fundamentally an issue of supply and demand and the failure of governments to invest in—

Order on my left!

As I was saying, the fundamental problem with the housing market in Australia has been that supply has not kept up with demand, which is why we saw the extent of price increases over so many years, which did make homes unaffordable. So this government has, firstly, focused on what we have to do to increase supply so that we can get more people into their own homes and more Australians have the opportunity to own their own homes.

Secondly, we have ensured, through our tax changes, that there is a stronger investment incentive for building new housing supply. I would make the point that I know that those opposite don't care about more supply, but investor loans for new builds show a 27.5 per cent increase and construction loans show a 20 per cent increase. What that shows is that the market is responding to the fact that there are now more tax incentives for new builds—that is, to bring more supply into the market—than simply giving investors a tax break to compete against first home buyers with already existing builds.

In relation to making sure more young people can enter the market, you will know that our five per cent deposits has ensured that many Australians have been— (Time expired)

Senator O'Sullivan, first supplementary?

For Australians now trapped in negative equity—that is, owing more on their mortgage than their home is worth—how many more Australians does the Prime Minister expect will fall into negative equity if house prices keep falling and interest rates stay where they are?

I would make the point that, when you were in government, just over two per cent of borrowers were in negative equity. According to the Reserve Bank of Australia, less than one per cent of mortgage holders are, in fact, in negative equity, and I don't recall you, as a backbencher, or anyone else on that side at that stage talking about negative equity on those occasions. We did not see outrage from the coalition when it came to the situation where more than twice as many Australians were in negative equity under them, and I think that says something. It says something to Australians that those opposite are very happy to champion the tax breaks for investors, giving them a competitive advantage against first time buyers. But they really can't stand it—can they?—when a government works to ensure that more first home buyers get into the market. (Time expired)

Senator O'Sullivan, second supplementary?

The Prime Minister promised Australians that he would make housing more affordable. Was this—that is, higher repayments, falling house values and Australians trapped in negative equity—Anthony Albanese's idea of making housing more affordable?

Senator, the key to housing affordability is, first and foremost, additional supply. That is the key to housing affordability, and we've seen the price of houses in this country be unsustainably high for so many Australians. That has meant that Australians have been locked out of the housing market and it has meant a 400 per cent increase in the past 25 years. You may think that is a good thing, but we think it is important to bring more supply into the market so that we give more young Australians the opportunity—

Order! The constant interjections from those on my left are discourteous and disorderly.

I know you don't like it, but, actually, bringing more houses into the market and making sure that we don't give investors a competitive advantage over first home buyers is the right thing to do. I know you can't bear the fact that this is about increasing the opportunity for young people in this country. On that note, I ask that further questions be placed on the Notice Paper.