Nigel Scullion (NT, Country Liberal Party, Minister for Community Services) Share this | Hansard source

I thank Senator Kirk for the question. We have dealt with the issue of housing affordability on a number of occasions in this place. I think that we need to look again at the whole issue of housing affordability. I have spoken about it slowly and I have explained it in a number of ways, but perhaps we need to go back into the basics. It is all about the fundamentals of supply and demand. If we have a reduction in supply and a slowing down of land release, we will have an increase in red tape and we will also have the continued imposition that so many have commented on in this place of stamp duty and land taxes by the states and territories.

In terms of supply, the state and territory governments and local governments are essentially responsible for ensuring that we have the provision of land so developers can go ahead and develop land to provide houses. We also have processes of local government and state governments ensuring that there is a reasonable and well-planned release of land.

Of course, these are leverages that again lie with the states and territories. As we have said before in terms of housing affordability—this will be the second time today that I have referred to it—the Commonwealth government between 1996 and today provided the states and territories with sufficient funds to build 36,000 houses. Then the Labor Party, because it is the Labor Party, come into this place and say to us, ‘How are people going to afford a home?’ They should be asking themselves because the Australian taxpayer—and it is the Australian taxpayer, not us—has provided Labor, through us, with $9.6 billion and we have fewer houses today then we did in 1996. This sort of question needs to be asked of the Labor Party, who are in control of the states and territories.

Perhaps if I can just break this down. When you buy a house and pay $350,000, you take your young bride, walk through the door and put her down on the other side, and just the stamp duty means it is worth $25,000 less. Also, immediately when you walk into your new house the land tax, which is the same amount as the stamp duty, means it is worth less. So when those on the other side—