Kathryn Robinson:
I was joined earlier by the Federal Housing Minister, Michael Sukkar. I asked the Minister whether the Government was failing young people when it came to housing policy.
Minister Sukkar:
Well, Kathryn, I look at the statistics and the statistics tell a reasonably good story for first home buyers at the moment. As we’ve seen up until the end of March, 155,000 first home buyers this year which is a 55 per cent increase on the long run average of 100,000. Let’s not forget, twelve months ago we were looking at some commentators suggesting a complete collapse in the residential housing market. With programs like HomeBuilder and the First Home Loan Deposit Scheme, what we’ve been able to do is make sure demand, particularly demand from first home buyers, was maintained. Obviously in the context of very little net overseas migration, that has meant that those opportunities for first home buyers and importantly the supply of new housing, has continued unabated.
Kathryn Robinson:
The first home buyer deposit scheme now has a wait list. Do young people need something a little more accessible?
Minister Sukkar:
Well we’re very proud of the First Home Loan Deposit Scheme which allows first home buyers to purchase a home with a five per cent deposit, it was a commitment that we took to the election and one that we’re very proud to have delivered upon. Another 20,000 places under that scheme will become available in just a matter of weeks on 1st July. We’ve got 10,000 places in the Frist Home Loan Deposit Scheme category which applies to established residential properties, and another 10,000 New Home Guarantees for first home buyers who want to purchase a new home.
Kathryn Robinson:
But Minister, do you really think the housing market is accessible to all first home buyers? We here of case studies of families who’ve saved for years who have been priced out. Is it really an option for every Australian, trying to get into the market?
Minister Sukkar:
Yeah, Kathryn, it’s extraordinarily hard to purchase your first home, there’s no doubt about it. But there’s no doubt, Kathryn, the reason why we put in programs like the First Home Loan Deposit Scheme, like the HomeBuilder program – which has had nearly 140,000 people successfully getting a grant – is to try and recognise that it is extraordinarily difficult and getting over that deposit hurdle is hard. In the bigger cities, it’s even harder.
Kathryn Robinson:
Minister, these schemes are designed to help people get into the market but aren’t they just putting money into an already heated system fuelling the housing bubble?
Minister Sukkar:
Well this is where the First Home Loan Deposit Scheme and Family Home Guarantee and New Home Guarantee are, I think, important and innovative policies. They don’t actually put more liquidity into the market. It’s a government guarantee that enables people to access the finance that they need to buy so it’s not a traditional grant that obviously put more liquidity into the market. We chose that option for the HomeBuilder program in the middle of a pandemic because sales fell off a cliff and the residential construction industry were saying to the Government that half a million jobs would be at risk.
Kathryn Robinson:
So should the Federal Government step in with policies to temper this housing bubble, for example, reducing investment incentives?
Minister Sukkar:
No, Kathryn, we won’t. Unlike the Labor Party we don’t think that the housing market needs to be taxed anymore. Really the answer is, Kathryn, to these questions, is supply. States and territories have the primary responsibility for supply. They control planning schemes and zoning and we’re working through National Cabinet through the population and migration subcommittee of National Cabinet, working on ways that we can encourage states to get more supply into the market. There’s a lot of work to be done by our state and territory governments on ensuring that their supply of new housing can keep up with demand.
Kathryn Robinson:
So will the Federal Government look at changes to negative gearing?
Minister Sukkar:
No, we won’t. I’ve made very clear, Kathryn - unlike the Labor Party - we won’t have an each-way bet on housing taxes and negative gearing. We have been very clear that the more than a million Australians who invest in their future by investing in a property should not be disadvantaged and should not be taxed more.
Kathryn Robinson:
Minister Sukkar, thank you for your time.
Minister Sukkar:
Thanks Kathryn.