Glenn Sterle (WA, Australian Labor Party) Share this | Hansard source

I look forward to making my contribution to take note of the questions asked by Senator Gallagher to Senator Cormann. Before I do, I have to clear up a couple of things. I know the new senator has replaced Senator Ronaldson. We are all on the same swing and we will be up at the next election. This is not good news. The unfortunate thing is I have kids the same age—I wish I was your age!—that are struggling to try and find and buy a house. Through you, Mr Acting Deputy President: Senator, I know that you are No. 1 on the ticket, but I also know that you are paid $200,000 a year like we are as well. I also know that means you are going get at least seven years, so you will be right mate, and good luck to you.

Now I have that off my chest, I will clear a few things. I have three rental properties and I have my own on home. I can tell you that, when my wife and I first started, we had no chance. In fact, her mother gave us a good suggestion and said: 'Look, you have only been married a couple of months. You are renting a place in Ferndale, in Perth's eastern suburbs, trying to pay off a truck. You can't afford it. Would you like to move in and live with us for six months so you can save some dollars,' so I could go back to the Commonwealth Bank and plead for a loan. I have to tell you that that six months turned into 2½ years before they threw us out—joking! I was getting very comfortable. We were able to afford to buy a block of land.

I am in a very good suburb in Perth, just out of Fremantle, called Cardinia. I remember when my wife and I bought that block of land and then had to save for another 2½ years before we could build on it. I had no idea how I was going to pay $28,000. I was actually stressed because my truck was worth $32,000. But to sit there and actually put our heads in the sand—I struggle with this. The kids are now off our hands. We have been able to save a few bob and invest in rental properties. It is a great thing because I am thinking to myself: 'You know what? I am going to give my kids a property each.' But then I sit and I struggle with this, thinking: 'Hang on, let's say it as it is. It's not a bad tax loop to negative gear.' Some people might want to throw rocks at me, but I have to get this on the record. I have used the system and it is not illegal. But I am really struggling with it now when I look at my 25-year-old and my 28-year-old as they are desperately trying to enter the housing market.

My daughter—God bless her, I love her dearly—just got married. She and her husband have a unit in Subiaco and they have had to scrounge and scrimp to put together every single cent they can to get this unit. Sadly, unlike a lot of our generation, today the younger generation would love to start a home—that being four bedrooms, two bathrooms, a studio, two cars in the driveway and international holidays every six months. That is great if you can get it! But we really have to put the interests of the next generation first. We should explore every avenue there is to do whatever we can to make housing affordability one of the No. 1 issues in this nation, because not every young Australian is going to have the opportunity to earn what we earn. It would be lovely if they could! Therefore, I want to make it very clear that I will support and endorse, fanatically, any policies that give our younger generations the opportunity to enter the housing market.

When you look at my home town of Perth, it is a classic example of where we enjoyed the benefits of the mining boom—that mad 10 years. No-one talked about housing prices around the barbecues in Perth—it was your football team or whatever it may be—until the boom started. It got embarrassing, and I think that Senator Wang would actually agree with me here. I think he would. It got to the stage where I was not interested in listening to Western Australians who would start every conversation at the barbie with how much their house was worth! It just went crackers!

We all fell for this thing, 'Oh well, I bought my house for 20 grand and it is now worth 180 grand!' They did not think, 'Hang on—if I want to sell it and upgrade where the heck am I going to get the money from?' It went ludicrous. If you look at our home state—Senator Wang and I—and in Perth: for young people to be able to afford a piece of land to put a nice little three-bedroom, two-bathroom cottage on we are talking about going 30 kilometres out of the city. That might not be a lot for those from New South Wales but I have to say that when you see young people balancing wanting to start a family, wanting to have their own residence and trying to juggle two wages until the pregnancy comes along and then one, it is damn frightening.

We need to grow up. It is now time to put the interests of the next generation first, not our own. (Time expired)

Question agreed to.