❓ Treasurer Wyatt defends changes to Keystart eligibility criteria aimed at boosting the housing sector and supporting jobs, criticising the opposition's stance and promoting Keystart as a viable alternative to mainstream banks.
AnsweredQoN 312Legislative Assembly
QuestionView source ↗
HOUSING — KEYSTART
LOANS
312. Mr R.R. WHITBY to the Treasurer:
I refer to the recent tightening of
credit that has made it difficult for prospective homebuyers to access finance.
(1) Can the
Treasurer outline to the house how changes to the Keystart eligibility criteria
will provide a boost to the housing sector and support jobs in the building
industry?
(2) Is the
Treasurer aware of anyone who is trying to undermine these efforts?
LOANS
312. Mr R.R. WHITBY to the Treasurer:
I refer to the recent tightening of
credit that has made it difficult for prospective homebuyers to access finance.
(1) Can the
Treasurer outline to the house how changes to the Keystart eligibility criteria
will provide a boost to the housing sector and support jobs in the building
industry?
(2) Is the
Treasurer aware of anyone who is trying to undermine these efforts?
AnswerView source ↗
(1)–(2) I
thank my good friend, my parliamentary secretary, for the questions around a very
good announcement by the government just last week, a very important budget
initiative around increasing the income threshold for those who would like to
access a Keystart loan. Before I do, I will quickly tidy up a couple of things
that the opposition got wrong. I note that the Leader of the Opposition fell
for the classic mistake of looking at the monthly data. The retail trade data
also showed that our annual average growth is at its highest since December
2014. Secondly, CommSec also showed that Western Australia's economy is
growing the fastest of all states in the nation. Thirdly, the Leader of the
Opposition during his entire time as Treasurer never oversaw one year of state
final demand growth. I want to start with that and then come back to Keystart,
because I always enjoy a debate around economic performance with the Leader of
the Opposition and of the WA Liberal Party.
The important thing we have done,
and clearly what has happened now—I think people now accept this—is
that the banks have wound back the availability of their finance.
Mr D.C. Nalder interjected.
The SPEAKER : Member for
Bateman, I call you to order for the first time.
Mr
B.S. WYATT : The banks have wound
back their availability of finance. That is why I have taken up causes with Australian
Prudential Regulation Authority, for example, to try to get the mainstream banks
back into this space.
Dr M.D. Nahan interjected.
The SPEAKER : Leader of the
Opposition, I call you to order for the second time.
Mr
B.S. WYATT : What has happened is
that as the rental vacancy rates have declined to a level that would suggest
that we potentially have a supply issue we have seen what we would expect
around lending for new homes. Indeed,
when I have spoken to the Master Builders Association, individual property
developers or other peak bodies, they have made it clear that plenty of people
are making offers for properties, whether they be new or established homes.
However, about 80 per cent are falling over through lack of finance, and that
is why we have made this decision around Keystart and given a finite period of
six months. We want people to make decisions and get access to finance so they
can do the sorts of things that many people in this place might take for
granted—that is, own a home. I want to emphasise this point, because I think
the shadow Treasurer thinks it is for investment purposes only. I was surprised to see the member for Bateman critiquing the decision made by the
government and articulating that people should be going to the mainstream
banks. I say to the member for Bateman that not every Western Australian has
the sort of interest in property that he has. Some of them are trying to get
into the property market to own their own home, not to invest in properties.
The reason Keystart, despite his spruiking on Twitter for the banks —
Mr D.C. Nalder interjected.
Mr B.S. WYATT : He has been
absolutely spruiking, and that has been noted by the MBA, the Property Council
of Australia and the Urban Development Institute of Australia because I made it
crystal clear that his tweets—his spruiking for the mainstream banks—were
noted.
Mr D.C. Nalder interjected.
The SPEAKER : Member for Bateman!
Mr B.S. WYATT : I suggest he
should understand that he no longer works for them; he is now in Parliament,
apparently working for Western Australians. The reality is that Keystart
provides low deposit, no mortgage insurance and low account fees —
Mr D.C. Nalder interjected.
The SPEAKER : Member for
Bateman!
Mr B.S. WYATT : — and
this is the value of Keystart. I say to the opposition that it is an unusual
position to take of simply critiquing a decision around making finance
available to Western Australians, articulating a case that they should be going
through the mainstream banks and, on Twitter warning people not to use Keystart
or to take up these opportunities.
Mr D.C. Nalder interjected.
The SPEAKER : Member for
Bateman!
Mr B.S. WYATT : I suspect
that the results will be in by the end of this year and I suspect that they
will show that this has been an enormous success.
I conclude with a quote from the
Master Builders Association, which, to be honest, has been flummoxed by the
position taken by the opposition on the decision on Keystart. I quote —
''It will bring relief to many
of our members who are fighting for survival through a prolonged slump in the
new home sector.
''Master Builders
congratulates Premier Mark McGowan for taking this important step, which will
support first home buyers in achieving home ownership and assist the
residential building industry.
''We look forward to more
housing projects being enabled and jobs created, including opportunities for
apprentices.''
The fundamental reality is that
this government is a government for jobs.
thank my good friend, my parliamentary secretary, for the questions around a very
good announcement by the government just last week, a very important budget
initiative around increasing the income threshold for those who would like to
access a Keystart loan. Before I do, I will quickly tidy up a couple of things
that the opposition got wrong. I note that the Leader of the Opposition fell
for the classic mistake of looking at the monthly data. The retail trade data
also showed that our annual average growth is at its highest since December
2014. Secondly, CommSec also showed that Western Australia's economy is
growing the fastest of all states in the nation. Thirdly, the Leader of the
Opposition during his entire time as Treasurer never oversaw one year of state
final demand growth. I want to start with that and then come back to Keystart,
because I always enjoy a debate around economic performance with the Leader of
the Opposition and of the WA Liberal Party.
The important thing we have done,
and clearly what has happened now—I think people now accept this—is
that the banks have wound back the availability of their finance.
Mr D.C. Nalder interjected.
The SPEAKER : Member for
Bateman, I call you to order for the first time.
Mr
B.S. WYATT : The banks have wound
back their availability of finance. That is why I have taken up causes with Australian
Prudential Regulation Authority, for example, to try to get the mainstream banks
back into this space.
Dr M.D. Nahan interjected.
The SPEAKER : Leader of the
Opposition, I call you to order for the second time.
Mr
B.S. WYATT : What has happened is
that as the rental vacancy rates have declined to a level that would suggest
that we potentially have a supply issue we have seen what we would expect
around lending for new homes. Indeed,
when I have spoken to the Master Builders Association, individual property
developers or other peak bodies, they have made it clear that plenty of people
are making offers for properties, whether they be new or established homes.
However, about 80 per cent are falling over through lack of finance, and that
is why we have made this decision around Keystart and given a finite period of
six months. We want people to make decisions and get access to finance so they
can do the sorts of things that many people in this place might take for
granted—that is, own a home. I want to emphasise this point, because I think
the shadow Treasurer thinks it is for investment purposes only. I was surprised to see the member for Bateman critiquing the decision made by the
government and articulating that people should be going to the mainstream
banks. I say to the member for Bateman that not every Western Australian has
the sort of interest in property that he has. Some of them are trying to get
into the property market to own their own home, not to invest in properties.
The reason Keystart, despite his spruiking on Twitter for the banks —
Mr D.C. Nalder interjected.
Mr B.S. WYATT : He has been
absolutely spruiking, and that has been noted by the MBA, the Property Council
of Australia and the Urban Development Institute of Australia because I made it
crystal clear that his tweets—his spruiking for the mainstream banks—were
noted.
Mr D.C. Nalder interjected.
The SPEAKER : Member for Bateman!
Mr B.S. WYATT : I suggest he
should understand that he no longer works for them; he is now in Parliament,
apparently working for Western Australians. The reality is that Keystart
provides low deposit, no mortgage insurance and low account fees —
Mr D.C. Nalder interjected.
The SPEAKER : Member for
Bateman!
Mr B.S. WYATT : — and
this is the value of Keystart. I say to the opposition that it is an unusual
position to take of simply critiquing a decision around making finance
available to Western Australians, articulating a case that they should be going
through the mainstream banks and, on Twitter warning people not to use Keystart
or to take up these opportunities.
Mr D.C. Nalder interjected.
The SPEAKER : Member for
Bateman!
Mr B.S. WYATT : I suspect
that the results will be in by the end of this year and I suspect that they
will show that this has been an enormous success.
I conclude with a quote from the
Master Builders Association, which, to be honest, has been flummoxed by the
position taken by the opposition on the decision on Keystart. I quote —
''It will bring relief to many
of our members who are fighting for survival through a prolonged slump in the
new home sector.
''Master Builders
congratulates Premier Mark McGowan for taking this important step, which will
support first home buyers in achieving home ownership and assist the
residential building industry.
''We look forward to more
housing projects being enabled and jobs created, including opportunities for
apprentices.''
The fundamental reality is that
this government is a government for jobs.
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