KARL STEFANOVIC:
The Labor government is this morning backing the Business Council of Australia in their push for states to scrap stamp duty and ease the housing crisis. For more we’re joined by Housing Minister, Clare O’Neil in Bonnyrigg, Southwest Sydney.
Clare, good morning to you. Thanks for your time this morning. Just remind us how much control over stamp duty the federal government has.
CLARE O’NEIL:
Well, I said yesterday I don’t think that stamp duty is a good tax, Karl. I’ve also made it really clear that this is a matter for the states, and yesterday the comments I made were actually supporting some things that I’m seeing different states and territories do to manage that tax.
What I also just want to acknowledge is that really for the first time in my adult life, we’ve got a Commonwealth government and a bunch of state governments that are genuinely doing massive and bold things about housing. We’ve got right across Commonwealth state and local government strong recognition that we’ve got a generation of young people out there who are facing radically different housing opportunities than their parents and grandparents, and we’re starting to see the whole federation just put their shoulder to the wheel and do something big about that problem. So, it’s a big and positive thing.
STEFANOVIC:
All right. Just quickly on stamp duty though, you can’t control it, and you obviously haven’t spoken to your colleagues in the states; you’ve got zero friends among even your own premiers on abolishing stamp duty.
O’NEIL:
Look, Karl, I said it’s not a great tax. I think pretty much every economist in the country would agree with me when I say that. It’s one of those things that’s controlled by the states. What I want people to understand is that the Commonwealth government is doing every single thing that we can to try to help Australians manage housing difficulties at the moment.
I’m just here in Bonnyrigg in Western Sydney where we’re announcing a big infrastructure unlock today; water, sewerage pipes, roads, that kind of boring but important stuff, to make sure that we can build more housing. That’s one of our important initiatives.
STEFANOVIC:
I’ll get on to that in just a second.
O’NEIL:
Yeah.
JOURNALIST:
But just to finish off on stamp duty, what would you plug the shortfall with given that the premiers don’t want to do it?
O’NEIL:
Karl, I’m not suggesting a policy shift here. What I’m saying is an abject truth in this matter, and that this is not a great tax. It’s not a great tax, and that’s why we’re seeing some states and territories do some things to try to wind it back.
Now that doesn’t make it easy. What I can tell you is that along with that the states are doing some really big and important things about housing, massive changes in Victoria, in New South Wales and Western Australia. So, we’re all trying to do what we can here to change the housing situation up for the millions of people affected by this.
STEFANOVIC:
Pretty sure if you got rid of that bad tax, then they’d replace it with another bad tax anyway. So anyway, let’s march on.
The IMF now has the second highest inflation – says we have the second highest inflation in the world behind Slovakia. We’re almost double the US and Europe. You’ve run out of excuses, haven’t you? When are you going to cut government spending?
O’NEIL:
Well, Karl, inflation’s more than halved since we came to office, and I just remind your viewers at home that after the Coalition promising that they’d deliver a surplus each and every year they didn’t deliver a single one, yet we’ve been in government for 2 years –
STEFANOVIC:
But back on inflation –
O’NEIL:
– and we’ve delivered 2 back‑to‑back – 2 back‑to‑back budget surpluses. Well, you asked about government spending, so that’s the question that I’m answering. Two back back‑to‑back government surpluses. That hasn’t happened in our country for 30 years.
Now that being said, we don’t deny that people are doing it really tough in our country right now. That’s why you’ve seen our government roll out staggering cost‑of‑living relief. We’ve seen those tax cuts that went to every Australian taxpayer; $300 in energy bill relief, cheaper medicines. All of these things are adding up, but we absolutely acknowledge it’s really difficult out there at the moment. Grocery bills are higher than they should be, and no one wants inflation to come down more than me, the Treasurer and the Prime Minister.
STEFANOVIC:
But you can’t honestly sit in front of me this morning and say you can’t cut government spending more. I mean effectively this all means you’re going to go to an election next year without a rate cut. I mean that’s going to hurt.
O’NEIL:
Well, Karl, again, we’ve just delivered 2 budget surpluses after a decade of not seeing a single dollar in the black. That’s a really big and important thing, and that has happened because the Treasurer and the Prime Minister have sat down and made some difficult choices about cutting back in areas that were wasteful spending.
We’ve done that, we’ve seen the results in those 2 budget surpluses, we’re seen it in inflation halving in the time that we’ve been in office, but again I just say to your viewers at home, we’re talking about the big picture sort of government whole economy, in your household right now it’s really difficult, and that’s why we’re doing all those things that we can to try to help Australians manage what’s a difficult time.
STEFANOVIC:
How do you feel about going to an election without a rate cut?
O’NEIL:
Look, it’s not about the politics, Karl, it’s not about the politics today or any day, it’s about the people who are watching at home who are struggling with their family budget, and our obligation as their representatives is to do every single thing we can every day to try to help them get on to a better footing.
STEFANOVIC:
It’s going to make it harder for you. Look, you’re investing 26 million – behind you I can see all the works there, civil works – to deliver –
O’NEIL:
Yeah.
STEFANOVIC:
– homes in South West Sydney. Apparently, you’re running 65,000 short a year on your 1.2 million built homes plan. You’re a bit behind schedule.
O’NEIL:
Look, Karl, we’ve got a massively bold and ambitious housing agenda. The Albanese government’s investing $32 billion. We’re trying to build more homes ‘cause at the end of the day more housing means more affordable housing.
You mentioned on here today $26 million on the site behind me that’s going to unlock hundreds of homes here in Western Sydney. It’s the boring but important stuff; the roads, the water pipes, the sewerage. We’re trying to help Australians get into a better rental situation, and importantly we’re trying to help more Australians into home ownership.
But that being said, we’ve all got to work harder on this. We’re in a country right now where, you know, your kids and mine, Karl, are going to face totally different housing opportunities than we get, that our parents got and that our grandparents got, and we can’t put up with that, and that’s why you’re seeing our government and state governments do so much about this problem.
STEFANOVIC:
Always good to talk to you, Clare. Thanks for coming on.
O’NEIL:
Yeah, great. Thanks Karl.