❓ Question regarding the accuracy of claims that the foreign buyer surcharge will significantly impact the WA property market, and the Treasurer's response defending the policy and criticising the opposition's stance.
AnsweredQoN 567Legislative Assembly
QuestionView source ↗
FOREIGN BUYER SURCHARGE —
SOCIAL MEDIA COMMENTS
567. Ms J.J. SHAW to the Treasurer:
Before I begin, can I acknowledge
the presence of the year 9 students from Holy Cross College in my electorate.
Welcome to Parliament; I hope they have enjoyed their day.
I refer to the McGowan Labor
government's efforts to not put foreign property speculators before
families when it comes to budget repair and claims on social media by those
opposite that the foreign buyer surcharge will affect 12 per cent of the
market.
(1) Can the Treasurer advise the
house about whether these claims are correct?
(2) If not, can
he outline to the house the impact this fair and responsible budget repair
measure will actually have on the market?
SOCIAL MEDIA COMMENTS
567. Ms J.J. SHAW to the Treasurer:
Before I begin, can I acknowledge
the presence of the year 9 students from Holy Cross College in my electorate.
Welcome to Parliament; I hope they have enjoyed their day.
I refer to the McGowan Labor
government's efforts to not put foreign property speculators before
families when it comes to budget repair and claims on social media by those
opposite that the foreign buyer surcharge will affect 12 per cent of the
market.
(1) Can the Treasurer advise the
house about whether these claims are correct?
(2) If not, can
he outline to the house the impact this fair and responsible budget repair
measure will actually have on the market?
AnswerView source ↗
I thank the member for Swan Hills
for that very, very good question.
(1)–(2) I
have been, as I explained in here last week, very, very surprised that the
Liberal and National Parties, the opposition, would seek to prioritise foreign
nationals seeking to invest in residential property in Western Australia over
WA families.
Several members interjected.
The SPEAKER : Members, it is a
very good question. I want to hear the answer.
Mr B.S. WYATT : I was very
surprised that the Liberal and National Parties would prioritise those foreign
nationals over WA families. At every turn that we have tried —
Several members interjected.
The SPEAKER : Members.
Mr B.S. WYATT : At every turn
when we have tried to share the burden of budget —
Several members interjected.
The SPEAKER : Member for North
West Central, you shouted the loudest, so you get called to order. Members, I will
not put up with this continuous shouting. There is a question. Let the
Treasurer have his say. You have an opportunity.
Mr B.S. WYATT : Thank you, Mr
Speaker, because I do want to have my say on behalf of the families of Western Australia
who keep getting thrown under the bus by the Liberal and National parties of Western
Australia.
Several members interjected.
The SPEAKER : Members, I will
close down question time.
Mr B.S. WYATT : I have been
interested in the rhetoric coming from the opposition, because it has slightly
changed over the course of the week. What was initially blanket opposition, is
now, potentially, four per cent is okay, but seven per cent is economic
Armageddon, apparently, if we impose this on those foreign nationals. I find it
interesting that the shadow Treasurer —
Mrs L.M. Harvey interjected.
Mr B.S. WYATT : I will come to the member for
Scarborough in a minute. The shadow Treasurer has been using a figure of 12 per
cent of current purchases of residential property in WA are by foreigners,
highlighted again by his former employer, ANZ Research, highlighting how
incorrect that number is. I was very, very surprised, indeed intrigued, to see
the member for Scarborough post on Facebook about this particular issue. I want
to highlight what the member for Scarborough had to say. I am quoting from her
Facebook —
If you're a little confused
about why the State Liberal Opposition � have opposed Labor's foreign
investment tax legislation, I'd like to provide a bit of background as
to why we're come to this position.
I was confused, because I still do
not understand the economic rationale for the Liberal and National parties here
prioritising those foreign nationals over WA families. This is what the member
for Scarborough said. I thought that the 12 per cent figure used by the shadow
Treasurer for those purchases in respect of flow was ridiculous, when the
Foreign Investment Review Board highlight that in 2016–17 it was about
1.26 per cent.
Mr D.C. Nalder interjected.
The SPEAKER : Member for
Bateman.
Mr
B.S. WYATT : This is what the
member for Scarborough had to say, and I presume on behalf of the Liberal
Party, and I quote —
NSW had 23.6% of its residential
housing stock owned by foreign investors and VIC 25.2%.
Does she really think one-quarter of
housing stock in Victoria and New South Wales is owned by foreigners? The
housing stock?
Mrs L.M. Harvey : Housing
purchases.
Mr
B.S. WYATT : Member for
Scarborough, surely, if you stand still and think about this for a second, one
in every —
Mrs L.M. Harvey : Semantics.
Mr B.S. WYATT : Semantics! If
we are going to get involved in the economic debate, the difference between
flow and stock is quite considerable. Let me assure the member that not one in
every four households in Victoria or New South Wales are owned by foreign
nationals. Indeed, I went back to the same document from the ANZ, the former
employer of the shadow Treasurer, which makes this point —
� we estimate that foreigners own
between 2.5% and 4% of Australia's housing stock,
If we bear in mind that the vast
majority are in Queensland, New South Wales and Victoria, what does that work
out to be in WA? It is probably around about one per cent. Let us think about
this for a minute.
Mr D.C. Nalder interjected.
The SPEAKER : Member for Bateman!
Mr B.S. WYATT : The shadow
Treasurer can, if he likes, use data that he just plucks from the air and do this
Trump-esque sort of approach —
Mr D.C. Nalder interjected.
The SPEAKER : Member for
Bateman, I call you to order for the second time. I warned you three times.
Mr B.S. WYATT : I refer to
this Trump-esque approach of, ''That's just fake news; we'll
make figures up as we go along to justify our position.'' The final
point I want to make is that as they have tried to work out why they are
prioritising foreign nationals over WA families, their final argument has been
this: all those foreigners are buying all the properties; it is pushing up
prices and that is good for Western Australians.
I want to conclude by referring to a
report by Acil Allen Consulting on behalf of the Property Council of Australia
titled ''Benefits of Foreign Investment in Real Estate'' of last
year. I want to put on the record what Acil had to say. As I said, this
document promoting real estate was put out on behalf of the Property Council of
Australia. It specifically refers to the Sydney and Melbourne markets, which
have a much higher percentage of investors. This is what it found as a result
of the work of the Australian Treasury —
Treasury found that foreign
investment —
This is during the big boom period
on the east coast —
adds between $80 and $122 to the
price of a dwelling per quarter. Compared to the average quarterly price
increase over the period of study of $12,800, the amount that foreign buyers
add to prices is minor and may actually be better described as rounding error.
It went on to make the point —
� the notion that foreign investors
add to dwelling prices is unfounded.
This is a document commissioned by the Property Council of
Australia with Acil Allen. At every turn, the opposition's economic
argument has foundered. That is why its arguments about why it is prioritising
foreign nationals investing in residential real estate over WA families is
utterly irresponsible and utterly unfair to Western Australians.
for that very, very good question.
(1)–(2) I
have been, as I explained in here last week, very, very surprised that the
Liberal and National Parties, the opposition, would seek to prioritise foreign
nationals seeking to invest in residential property in Western Australia over
WA families.
Several members interjected.
The SPEAKER : Members, it is a
very good question. I want to hear the answer.
Mr B.S. WYATT : I was very
surprised that the Liberal and National Parties would prioritise those foreign
nationals over WA families. At every turn that we have tried —
Several members interjected.
The SPEAKER : Members.
Mr B.S. WYATT : At every turn
when we have tried to share the burden of budget —
Several members interjected.
The SPEAKER : Member for North
West Central, you shouted the loudest, so you get called to order. Members, I will
not put up with this continuous shouting. There is a question. Let the
Treasurer have his say. You have an opportunity.
Mr B.S. WYATT : Thank you, Mr
Speaker, because I do want to have my say on behalf of the families of Western Australia
who keep getting thrown under the bus by the Liberal and National parties of Western
Australia.
Several members interjected.
The SPEAKER : Members, I will
close down question time.
Mr B.S. WYATT : I have been
interested in the rhetoric coming from the opposition, because it has slightly
changed over the course of the week. What was initially blanket opposition, is
now, potentially, four per cent is okay, but seven per cent is economic
Armageddon, apparently, if we impose this on those foreign nationals. I find it
interesting that the shadow Treasurer —
Mrs L.M. Harvey interjected.
Mr B.S. WYATT : I will come to the member for
Scarborough in a minute. The shadow Treasurer has been using a figure of 12 per
cent of current purchases of residential property in WA are by foreigners,
highlighted again by his former employer, ANZ Research, highlighting how
incorrect that number is. I was very, very surprised, indeed intrigued, to see
the member for Scarborough post on Facebook about this particular issue. I want
to highlight what the member for Scarborough had to say. I am quoting from her
Facebook —
If you're a little confused
about why the State Liberal Opposition � have opposed Labor's foreign
investment tax legislation, I'd like to provide a bit of background as
to why we're come to this position.
I was confused, because I still do
not understand the economic rationale for the Liberal and National parties here
prioritising those foreign nationals over WA families. This is what the member
for Scarborough said. I thought that the 12 per cent figure used by the shadow
Treasurer for those purchases in respect of flow was ridiculous, when the
Foreign Investment Review Board highlight that in 2016–17 it was about
1.26 per cent.
Mr D.C. Nalder interjected.
The SPEAKER : Member for
Bateman.
Mr
B.S. WYATT : This is what the
member for Scarborough had to say, and I presume on behalf of the Liberal
Party, and I quote —
NSW had 23.6% of its residential
housing stock owned by foreign investors and VIC 25.2%.
Does she really think one-quarter of
housing stock in Victoria and New South Wales is owned by foreigners? The
housing stock?
Mrs L.M. Harvey : Housing
purchases.
Mr
B.S. WYATT : Member for
Scarborough, surely, if you stand still and think about this for a second, one
in every —
Mrs L.M. Harvey : Semantics.
Mr B.S. WYATT : Semantics! If
we are going to get involved in the economic debate, the difference between
flow and stock is quite considerable. Let me assure the member that not one in
every four households in Victoria or New South Wales are owned by foreign
nationals. Indeed, I went back to the same document from the ANZ, the former
employer of the shadow Treasurer, which makes this point —
� we estimate that foreigners own
between 2.5% and 4% of Australia's housing stock,
If we bear in mind that the vast
majority are in Queensland, New South Wales and Victoria, what does that work
out to be in WA? It is probably around about one per cent. Let us think about
this for a minute.
Mr D.C. Nalder interjected.
The SPEAKER : Member for Bateman!
Mr B.S. WYATT : The shadow
Treasurer can, if he likes, use data that he just plucks from the air and do this
Trump-esque sort of approach —
Mr D.C. Nalder interjected.
The SPEAKER : Member for
Bateman, I call you to order for the second time. I warned you three times.
Mr B.S. WYATT : I refer to
this Trump-esque approach of, ''That's just fake news; we'll
make figures up as we go along to justify our position.'' The final
point I want to make is that as they have tried to work out why they are
prioritising foreign nationals over WA families, their final argument has been
this: all those foreigners are buying all the properties; it is pushing up
prices and that is good for Western Australians.
I want to conclude by referring to a
report by Acil Allen Consulting on behalf of the Property Council of Australia
titled ''Benefits of Foreign Investment in Real Estate'' of last
year. I want to put on the record what Acil had to say. As I said, this
document promoting real estate was put out on behalf of the Property Council of
Australia. It specifically refers to the Sydney and Melbourne markets, which
have a much higher percentage of investors. This is what it found as a result
of the work of the Australian Treasury —
Treasury found that foreign
investment —
This is during the big boom period
on the east coast —
adds between $80 and $122 to the
price of a dwelling per quarter. Compared to the average quarterly price
increase over the period of study of $12,800, the amount that foreign buyers
add to prices is minor and may actually be better described as rounding error.
It went on to make the point —
� the notion that foreign investors
add to dwelling prices is unfounded.
This is a document commissioned by the Property Council of
Australia with Acil Allen. At every turn, the opposition's economic
argument has foundered. That is why its arguments about why it is prioritising
foreign nationals investing in residential real estate over WA families is
utterly irresponsible and utterly unfair to Western Australians.
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