Anika Wells (Lilley, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Prime Minister. Why won't the Prime Minister confirm that household debt is now nearly double disposable income, higher than it has ever been?

Josh Frydenberg (Kooyong, Liberal Party, Treasurer) Share this | Link to this | Hansard source

The member for Lilley, who may have not learnt any economics from her predecessor—

A government member: We hope not!

We hope not—the George Costanza rule! The value of the household sector's assets is five times greater than the value of its debts, as the Prime Minister said. Importantly, around three-quarters of the debt is owed by households in the top 40 per cent of the income distribution, and they generally have a higher capacity to make repayments and are less likely to go through a period of sustained unemployment. Low interest rates have also meant that total household mortgage payments, as a proportion of disposable income, are lower than they were in the mid-2000s. I direct the honourable member to the October 2019—this year—RBA Financial stability review, which said:

… housing debt is generally well collateralised. Furthermore, around three-quarters of the debt is owed by households in the top 40 per cent of the income distribution …

We know that there is one policy which would hurt the households of Australian families and people who own their own home. You know what it is? It's Labor's housing tax—a tax which the member for Rankin said he was proud of and pleased with. The member for Rankin has joined that long list of Labor luminaries—

Ms Burney interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Barton is now warned.

Josh Frydenberg (Kooyong, Liberal Party, Treasurer) Share this | Link to this | Hansard source

trying to make their pitch for the leadership, out there making a speech, following the member for Maribyrnong, the member for Corio, the member for Hunter. There are a lot of people looking at the Leader of the Opposition, but the reality is Labor's housing tax would hurt the incomes of Australian families. It's still on Labor's books despite their election loss, and only the coalition can be trusted to reduce taxes for Australian families and to help ensure a stronger economy for all.