Andrew Bragg (NSW, Liberal Party, Shadow Assistant Minister for Home Ownership) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Gallagher. Recent research from Finder reveals that 42 per cent of Australian mortgage holders were struggling to meet their home loan repayments in August. It's the highest level of mortgage stress in many years. The average owner-occupier mortgage now has risen to $634,000, a 9.3 per cent increase from 2023. Meanwhile, yesterday's latest building activity data shows the government's housing agenda is making things worse. Between 2023 and 2024, home-building commencements dropped 8.8 per cent to the lowest level in a decade, with just 158,690 new starts. Why is Labor's housing policy making a bad situation even worse?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I reject the assumption at the end of that question—that it is making the situation worse. I would say that what's making the housing situation worse is not having agreement in this chamber around a range of policies that could be implemented to support the construction of new housing, support people from renting into housing and support investments in other housing options. That's the handbrake. That's the block that's happening at the moment.

We as a government are doing everything we can to ensure that, for the areas that the federal government has control over, we are moving them all in the direction of additional supply of housing. We acknowledge that those who have mortgages are under stress. That's what happens when you have interest rate increases during a period of high inflation, which is why we have also been looking at ways to support people who are in that position with effective cost-of-living relief. We have been putting in place agreements with the states and territories around housing and homelessness. We have agreements on a social housing accelerator. We have put in a billion dollars to help support enabling infrastructure because local governments tell us that not having that infrastructure is a handbrake for them on getting more housing developed. We have the states and territories agreeing to review their planning requirements, to accelerate the capability to get more housing supply in the system sooner. We've made announcements about the Housing Australia Future Fund. We have the Help to Buy and Build to Rent bills that are stuck here. We have the home owner guarantee scheme. That's been very popular. It's supported over 100,000 people into homeownership.

On every single level and every measure you look at, we are doing what we can to increase the supply of housing in this country. It was not a problem that occurred overnight. (Time expired)

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

Senator Bragg, a first supplementary?

Andrew Bragg (NSW, Liberal Party, Shadow Assistant Minister for Home Ownership) Share this | Link to this | Hansard source

Minister, can you confirm that, to keep Labor's promise of 1.2 million new houses, one new house needs to be built every 2.2 minutes? Will Labor ever meet this target?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

We are proud to have a housing target that includes the plan to build 1.2 million homes. We have set that target and we are putting in place the policies to meet that target. Obviously, working with the states and territories is really important here but also so is training more tradies. Part of the issue we have is around workforce. We're funding more apprenticeships and growing that workforce, looking at how we can cut red tape, which is the work we are doing with local government, doing planning reform, providing incentives to state governments to get homes built quickly, delivering the biggest investment in social housing in more than a decade and working with the states and territories on how to reduce homelessness.

I would say to those opposite that this was a problem a decade in the making because of the distinct lack of interest from those opposite in housing. They didn't even have a housing minister for a substantial period of time. (Time expired)

Hon. Senators:

Honourable senators interjecting—

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

Order! Senators, yesterday was extremely disorderly when senators were attempting to ask their questions and when ministers were responding. I am going to go back to rulings of Senator Ryan and Senator Brockman that questions and answers be given and heard in silence. Senator Bragg?

Andrew Bragg (NSW, Liberal Party, Shadow Assistant Minister for Home Ownership) Share this | Link to this | Hansard source

Under Labor, the prospect of owning your own house has become the preserve of the rich. Barrenjoey data shows that the share of Commonwealth Bank home loans for owner-occupiers earning more than $200,000 has doubled in the past few years, but the share going to borrowers on less than $100,000 has almost halved. Minister, won't your government's business-burdening industrial relations changes—green and red tape—make a bad situation even worse?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

Thank you—

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

Senator Walsh! Minister Gallagher, please continue.

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

Thank you very much for that question and for reminding us what the coalition would do if they were to win government again on the industrial relations front. They want to wind back workers' entitlements. They want to wind back wages growth. They want to make workers working in jobs in construction and others more insecure, and we disagree with that. It will be a point of disagreement.

Honourable senators interjecting—

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

Minister, please resume your seat. Senators, I asked for silence when senators were asking their question and when the minister was answering; that is what I expect. Minister, please continue.

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

In terms of the beginning of that question, I've dealt with the IR component of that question. In terms of the first bit, why would we have invested in the Social Housing Accelerator? Why would we be investing in the Housing Australia Future Fund?

Andrew Bragg (NSW, Liberal Party, Shadow Assistant Minister for Home Ownership) Share this | Link to this | Hansard source

What about lending? What about mortgages? Those are all big-government solutions.

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

Minister, please resume your seat. Senator Bragg, which part of my statement did you fail to understand, particularly when the Senate was silent when your question was asked? You are being disrespectful to me and to this chamber. Minister, please continue.

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I couldn't disagree stronger with Senator Bragg on the fact that our policies are only around housing for the rich. Social Housing Accelerator, Housing Australia Future Fund, Commonwealth rent assistance—we are about housing for all, housing for everybody. (Time expired)