Steve Hutchins (NSW, Australian Labor Party) Share this | Link to this | Hansard source

My question is directed to Senator Scullion, the Minister representing the Minister for Families, Community Services and Indigenous Affairs. Does the minister recall claiming in question time on 22 March, 20 June and again yesterday that the housing affordability nightmare was the fault of state and territory governments? What comfort does the minister think his blame game gives to young mothers like Lisa Jackson and Michelle Grice, of Glenmore Park in Western Sydney, who already spend a third of their family income on home loan repayments? What is the impact on housing affordability of nine interest rate hikes in a row? After five consecutive interest rate rises since 2004, aren’t working families right when they say that the Howard government is dishonest and has broken its promise to keep interest rates at record lows?

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

I thank the senator for his question. As I said yesterday and have said before in this place—and I thank the senator for reminding all of us in this place of the government’s contribution in this regard—housing affordability is an issue that continues to affect particularly people who are paying off their own homes. It also applies to the area of rents. We have stated quite clearly in this place that the principal levers for making adjustments in this area lie with the states and territories. As I said yesterday, we have made a huge investment. Put simply, we invested a billion dollars a year over a 10-year period. I went into this very carefully yesterday, so I am surprised to get this question again today. That $10 billion—that is $1 billion a year—should have purchased 36,000 houses. Can you imagine if we had 36,000 extra houses for public housing? We would not have the housing affordability crisis that we have today. We provided $9.6 billion but we have fewer houses today than we had in 1996, because we invested in state and territory Labor governments and we asked them to commit to providing 36,000 houses and we did not get one extra house. I have to say that to come into this place and say—

Chris Evans (WA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

What’s that got to do with the interest rates?

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

I will get to that. They come into this place and say, ‘Look, for some reason or other the $12 billion in stamp duty and land taxes imposed on the cost of houses by the state and territory governments is something that the Australian people should just simply ignore.’ Well we on this side will not wear that, and neither will the Australian people. In 2004-05 $12 billion in stamp duty and taxes were collected, and it has gone up a great deal since that time. I will repeat that for the benefit of the Leader of the Opposition in the Senate: in 2004-05 $12 billion dollars of stamp duty and taxes were collected.

Chris Evans (WA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Is that the same as the $10 billion or is it a different $10 billion?

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

No, it is indeed completely separate. We are talking about a $12 billion imposition of state land taxes and stamp duty in 2004-05. It is a Labor housing affordability tax. Yet Labor come into this place and start lecturing us about the impact of our policies. They come into this place and say, ‘What about interest rates?’ Every Australian should recognise that having to pay 6.5 per cent interest is different to having to pay 17 per cent interest. I know where every single Australian would like to be on this matter. What every single Australian needs to remember about housing affordability is that they simply cannot trust Labor.

Steve Hutchins (NSW, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Isn’t the fifth interest rate hike since the election going to make it almost impossible for young Australians and their families to buy their own home? What is the government going to do to make housing more affordable for working families?

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

I know those on the other side do not use this tactic as often as we do, but we think that simply the provision of facts is extremely useful. All the indications from the Reserve Bank are that one-quarter—that is, 25 per cent—of owner-occupier borrowers are more than a year ahead in their scheduled repayments. So 25 per cent of people who are buying a house with a mortgage are more than a year ahead of scheduled mortgage payments. More than half of the people in Australia who are paying off their own homes—

Penny Wong (SA, Australian Labor Party, Shadow Minister for Corporate Governance and Responsibility) Share this | Link to this | Hansard source

Senator Wong interjecting—

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

Please do not interject, Senator. Furthermore, 50 per cent of people are more than a month ahead in their repayments. I refer to an article in the Australian on 27 July which said:

The Reserve Bank estimates that less than 1 per cent of all home borrower households are more than 90 days behind on their repayments ...

So 50 per cent of Australian households are ahead in their repayments. (Time expired)