Dean Smith (WA, Liberal Party, Shadow Assistant Minister for Competition, Charities and Treasury) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Wong. Has the government modelled the impact of the decision to increase immigration by 715,000 people over the next two years on rental markets in Australia's capital cities?

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

When I find the brief I was looking at before in relation to migration, I will respond directly on the NOM that he identifies. But, if I may, I'll go to the rental point. It is odd to get a question about housing in a week where the coalition and the Greens are going to work together to prevent investment in housing supply. Because if Senator Smith were concerned, as his question suggests he is, about rental affordability—he is somebody who I think understands basic supply and demand—he would understand that, if you increase supply, you put downward pressure on prices. So if one cares about rental affordability, how do you square that away, Senator Smith, with your opposition to more investment in the very capital investment that you say matters?

The reality is that we have a higher net overseas migration forecast in 2022-23 to reflect a one-off catch-up from the pandemic and the return of international students. I know those opposite recognise the importance of that export service to our economy and to the financial and broader position of our educational institutions. So I would have been surprised—in fact, I have been surprised—at Mr Dutton's position, which seems to suggest we don't want international students to return, which is, of course, an expert earner for Australia, but at the same time is opposing the Housing Australia Future Fund.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Smith, a first supplementary?

Dean Smith (WA, Liberal Party, Shadow Assistant Minister for Competition, Charities and Treasury) Share this | Link to this | Hansard source

How does the government reconcile its plan for increased immigration with the comments made by the Reserve Bank of Australia in this month's statement on monetary policy that 'a shortfall in housing supply relative to strong demand from a rising population is expected to result in continued upward pressure on rents, adding to the inflation forecast'?

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

I suppose the response to that might simply be: How do you reconcile your opposition to more investment in housing with the statement that you've just read out? It is utterly inconsistent. But because Senator Smith and I have served here a long time together, I will take the less political aspect of his question—oh, sorry; now you're going to be in trouble, aren't you, now I have said that?—which goes to the inflation point. It is an important balancing act that the government has had to take through the budget as we look at how you invest in support for the cost of living, given the cost-of-living pressures that Australians are facing, without adding to inflation.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Watt!

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

The expenditure review committee, the Finance Minister and the Treasurer, as well as the Prime Minister, have been very focused on it. (Time expired)

Sue Lines (President) Share this | Link to this | Hansard source

Senator Watt, I am going to remind you it is incredibly disorderly to call out when you're walking down to the Senate, and I would further ask you to withdraw the comments that you made.

Murray Watt (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | Link to this | Hansard source

I will.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Smith, a second supplementary question?

Dean Smith (WA, Liberal Party, Shadow Assistant Minister for Competition, Charities and Treasury) Share this | Link to this | Hansard source

Isn't the government's decision to increase immigration to unprecedented levels just another example of the government's policies working against the Treasurer's statement that inflation remains the primary challenge in our economy?

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

It's quite disappointing that those opposite, who understand the backlog in terms of net overseas migration caused by the pandemic, are going down this path. It is the case that we are seeing the return of international students. It's an important sector. I remind the Senate that the population is still forecast to be cumulatively lower than pre-pandemic forecasts by June 2023, and 215,000 persons lower in June 2024. In fact, while the net overseas migration figure is higher, the population forecast is lower than was forecast previously. Obviously we understand the importance of making sure we have a sensible debate on migration—we've seen where this has gone at other times in this country. I urge those opposite to recognise that investment in housing is one of the ways we ensure that we assist in the battle against the rising cost of living that global inflation and supply chains constraints have raised— (Time expired)