28 March 2022

Interview with Neil Breen, 4BC Breakfast

Note

Topics: Home guarantee schemes, cost-of-living support.

NEIL BREEN:

Michael Sukkar is the Assistant Treasurer and housing minister. Good morning to you, Minister.

MINISTER SUKKAR:

Morning, Neil. Great to be with you.

NEIL BREEN:

Great to have you on the show. Okay, so this housing scheme, it’s important for people trying to get into the market. One of the biggest problems though is that low interest rates has caused huge inflation in the cost of properties.

MINISTER SUKKAR:

Yeah Neil, you’ve summed up the program pretty well. It’s into it’s third year. We took the home guarantee scheme to the last election, put it in place in 2020, since then we’ve had 60,00 people utilise the scheme to purchase their first home. We’re now expanding it – as you said – from 20,000 places a year to 50,000 places and in essence, you’re right, the big hurdle for first home buyers is getting that deposit together. Banks are requiring a 20 per cent deposit which is out of reach for a lot of people so through this scheme you’re able to get into your first home with a 5 per cent deposit which obviously brings forward by many years the time at which you can buy your first home. It also saves thousands of dollars on lenders mortgage insurance. It’s been such a popular scheme that we have decided to expand it in this pretty unprecedented way – 50,000 a year. We’ve also got 5,000 places within that for single parents under the Family Home Guarantee which basically means single parents can purchase a home with a deposit of just 2 per cent so we guarantee a little more for them. We’ve also got 10,000 places for the regional home guarantee specifically set aside for people who want to build or buy a new home in a region to make sure that our regional areas are being supported by what we’re seeing is an increasing number of people who want to live in the regions. It’s been obviously a difficult time in the housing market with record low interest rates and therefore rising prices but counterintuitively, Neil, we’ve seen first home buyers at their highest level for nearly fifteen years as a result of this scheme, the HomeBuilder program, the First Home Super Saver Scheme, all policies we’ve put in place over the last couple of years. We had 180,000 first home buyers in the last calendar year which is up on the long‑term average of 100,000 to 110,000. Even in the midst of really rapidly rising house prices, first home buyers at record highs just shows that these programs are working.

NEIL BREEN:

Good and we just need the apprentices and everyone to come through. I know that you’re doing some things along those lines in the Budget. The big story in the Courier Mail today is this infrastructure spend. I know it’s happening Australia‑wide but Queensland benefits with $1.6 billion this commitment from the Federal Government to extend the rail line into Maroochydore, from Beerwah to Maroochydore. It’s been talked about in Queensland for a long time. The Transport Minister, Mark Bailey just contacted the show, and he came on the show, and he bagged you guys and he said that you don’t deliver on election promises and they don’t have their hopes high that you’ll actually hand over this money and get it done.

MINISTER SUKKAR:

Well, Neil, obviously you’ve got a very political State Government there. I would’ve thought that any responsible state government would welcome these sorts of investments. As you said, $1.6 billion for that rail extension, more than $1.1 billion for the Brisbane to Gold Coast faster rail upgrade, $150 million for the Brisbane Metro Woolloongabba station, nearly $400 million for the South East Queensland city deal. I would’ve thought any responsible state infrastructure minister would welcome those investments. It’s sad when people in those positions feel the need to run the lines of Anthony Albanese and the Labor Party in Canberra when really, they should be fighting for the interests of their state. Having said that, we’ll be focussed on delivering what Queensland needs from an infrastructure perspective, such an important part of Australia’s economic future and we’ll continue to make these investments whether or not the State Government gives us the credit we deserve or not because in the end, it’s all there for the Queensland people and that’s who we’re focussed on.

NEIL BREEN:

Just quickly before I let you go. I know you won’t give us the amount, but it does appear as though the fuel excise will be cut for six months. Can we expect something like that in this Budget?

MINISTER SUKKAR:

Neil, I don’t know where you’ve heard that from.

NEIL BREEN:

I’ve heard it on page one of The Australian.

MINISTER SUKKAR:

I’m joking, Neil. You’re right, you know how these things operate. All the details will be in the Treasurer’s speech tomorrow night, Neil. You know it’s sort of silly season in the lead up to the Budget. You’ve been there and done that, I know. Look, we’re very focussed on delivering cost‑of‑living relief for Australians. Yes, the economy is surging ahead in its recovery. Yes, we’re leading the world in the economic recovery. Yes, unemployment is at 4 per cent but there are people who are feeling the pressures of cost‑of‑living and as the Treasurer and the Prime Minister have made very clear – notwithstanding the good economic news more broadly – we do really want to deliver cost‑of‑living relief. We’ll find ways to deliver that, and I know there’s been a lot of speculation about it, but you also know, Neil, I can’t confirm anything until it comes out of the Treasurer’s mouth on Budget night.

NEIL BREEN:

Okay, Michael Sukkar, Assistant Treasurer and housing minister, I look forward to catching the train with you from Brisbane to Maroochydore one day. Thanks for your time.