Sharryn Jackson (Hasluck, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Housing and Minister for the Status of Women. Will the minister outline progress on measures to improve housing affordability for Australians and their families? Are there any risks to the implementation of policies designed to improve housing affordability?

Tanya Plibersek (Sydney, Australian Labor Party, Minister for Housing) Share this | Link to this | Hansard source

I want to thank the member for Hasluck for her question. I was in Hasluck earlier this month and saw firsthand her extraordinary efforts on behalf of her constituents. She is a very strong advocate indeed and was lobbying very strongly for her local area to benefit from the Rudd Labor government’s housing affordability measures. The government made clear before the last election that housing affordability would be a key priority. We recognised that strong action was needed to overcome many years of neglect in the area of housing affordability. The May budget funded our commitments in full and delivered $2.2 billion worth of new investment in the area of housing affordability. It was the first budget in over a decade to deliver new spending in this area.

First home saver accounts, for example, will be available from October this year. The new accounts will provide a simple, tax-effective way for Australians to save a bigger deposit for their first home through a combination of government contribution and low taxes. The government is investing $1.2 billion in these new accounts and will provide a 17 per cent contribution on the first $5,000 of individual savings made each year. This means that anyone who is contributing $5,000 to their account will receive an $850 deposit from the government. As we get closer to October, I would urge people who are interested in these new accounts to contact their banks and talk about the availability of the accounts. I am particularly thinking of young people, perhaps starting in their first job. They should think very seriously about putting aside $10 or $20 a week and, as their wage increases over the years, putting more into those accounts so that by the time they reach the age of 25 or 30 and are thinking about buying their first house they will have a nice little nest egg ready.

Look at the National Rental Affordability Scheme, our $623 million scheme to help build 50,000 new, affordable rental properties around the country. These properties will rent for 20 per cent below the market rent for a particular area and residents will still be eligible for Commonwealth rent assistance, making the properties even more affordable. On 24 July the Treasurer and I launched the first round of expressions of interest for the National Rental Affordability Scheme, and the applications are coming in. There has been a strong interest from institutional investors and from community housing groups who want to build bigger portfolios of affordable housing. These new homes will make a huge difference to people who are struggling in the private rental market.

I will also say something on our Housing Affordability Fund. Our $512 million Housing Affordability Fund will lower the cost of building new homes, particularly at the entry level of the market. Thirty million dollars of this new fund has already been distributed to advance electronic development assessment. Earlier this month I announced further funding for the states and territories to roll out new electronic development with councils in their areas. There are no overnight solutions to the housing affordability problems that we have inherited. The mayors from South-East Queensland who were in the gallery earlier today, and who are here lobbying, know as well as we do on this side of the chamber the pressures that working families are facing in terms of housing affordability.

Our agenda depends on a strong surplus, and the best thing the opposition could do would be to stop their attempts to block $6.2 billion worth of our surplus. We understand on this side of the chamber that many Australians are facing cost-of-living pressures, including in the area of housing affordability. We know how important it is to pass the budget in full so that we can continue our vital work helping Australian working families find an affordable place to buy or rent.