Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Hansard source

The price of anything is a function of supply and demand, and obviously if the demand exceeds supply then prices will go up and if supply exceeds demand then prices will go down, and over time, in the free market, things will get into balance. The truth is that the best way to improve housing affordability is to increase the supply of housing, and there are a whole range of things that state governments, in particular, can do in relation to that. Indeed, the Commonwealth, through the Treasurer, is working with state governments in relation to some possible initiatives in that space. What I would say, though, is that the worst thing to do in terms of housing affordability would be to pursue Labor's disastrous policy on negative gearing, because it would push up the cost of rental accommodation and push down the value of existing properties, which means it would undermine the wealth of families across Australia and their capacity to invest, to get ahead. That is why we continue to—