❓ Question regarding the potential impact of the Federal Labor's negative gearing policy on WA's rental market and housing prices, referencing SQM Research. The Minister deflects, highlighting the state government's focus on a strong economy and support for first home buyers.
AnsweredQoN 218Legislative Assembly
QuestionView source ↗
NEGATIVE GEARING —
FEDERAL LABOR POLICY
218. Mrs A.K. HAYDEN to the Minister for Housing:
I refer to the research conducted by
SQM Research on Labor's negative gearing policy, which has found that
if Bill Shorten is elected and his policies implemented —
Dr A.D. Buti : It is the
federal government. We are not in federal Parliament, we cannot change their
legislation.
The
SPEAKER : If you want to go to
federal Parliament, member for Armadale, a couple more calls and you can go.
Dr A.D. Buti : Will you pay
for me?
The SPEAKER : I call you to
order for the first time. Start again.
Mrs A.K. HAYDEN : I refer to
the research conducted by SQM Research on Labor's negative gearing
policy, which has found that if Bill Shorten is elected and his policies
implemented, market rents could rise between seven and 12 per cent over the
period 2020 to 2022.
Ms S.E. Winton : And the sky
will fall in!
Mrs A.K. HAYDEN : The sky will
fall in, really? That is right—if Bill Shorten is elected.
The SPEAKER : Member for
Wanneroo!
Several members interjected.
The SPEAKER : Members!
Mrs A.K. HAYDEN : Would you like me to start again?
Several members interjected.
The SPEAKER : Members! Start
again.
Mrs A.K. HAYDEN : I refer to
the research conducted by SQM Research on Labor's negative gearing
policy, which has found that if Bill Shorten
is elected and his policies implemented, market rents could rise between seven
and 12 per cent over the period 2020 to 2022; Perth, along with Brisbane, is
likely to record the largest rises in rents; and that further price
falls in the housing market over the period 2020 to 2022 will occur. Like the
Master Builders Association modelling, does the minister also reject SQM —
Several members interjected.
The SPEAKER : Members for
Balcatta, I call you to order for the first time. Member for Wanneroo, I call
you to order for the second time.
Mrs A.K. HAYDEN : Do you want
me to speak slowly? I can speak slower if you like.
Several members interjected.
The SPEAKER : Members, when
you get on your feet and you want to answer a question or ask a question, you
want silence. You might think you are funny, and the minister can laugh, but
you are disrupting Parliament, and that is the most important thing in this
chamber.
Mrs A.K. HAYDEN : Like the MBA
modelling, does the minister also reject SQM's researcher's
findings; and, if so, will the minister explain to the house the basis on which
he rejects these results, or is he just trotting out Labor propaganda rather
than standing up for hardworking Western Australians?
FEDERAL LABOR POLICY
218. Mrs A.K. HAYDEN to the Minister for Housing:
I refer to the research conducted by
SQM Research on Labor's negative gearing policy, which has found that
if Bill Shorten is elected and his policies implemented —
Dr A.D. Buti : It is the
federal government. We are not in federal Parliament, we cannot change their
legislation.
The
SPEAKER : If you want to go to
federal Parliament, member for Armadale, a couple more calls and you can go.
Dr A.D. Buti : Will you pay
for me?
The SPEAKER : I call you to
order for the first time. Start again.
Mrs A.K. HAYDEN : I refer to
the research conducted by SQM Research on Labor's negative gearing
policy, which has found that if Bill Shorten is elected and his policies
implemented, market rents could rise between seven and 12 per cent over the
period 2020 to 2022.
Ms S.E. Winton : And the sky
will fall in!
Mrs A.K. HAYDEN : The sky will
fall in, really? That is right—if Bill Shorten is elected.
The SPEAKER : Member for
Wanneroo!
Several members interjected.
The SPEAKER : Members!
Mrs A.K. HAYDEN : Would you like me to start again?
Several members interjected.
The SPEAKER : Members! Start
again.
Mrs A.K. HAYDEN : I refer to
the research conducted by SQM Research on Labor's negative gearing
policy, which has found that if Bill Shorten
is elected and his policies implemented, market rents could rise between seven
and 12 per cent over the period 2020 to 2022; Perth, along with Brisbane, is
likely to record the largest rises in rents; and that further price
falls in the housing market over the period 2020 to 2022 will occur. Like the
Master Builders Association modelling, does the minister also reject SQM —
Several members interjected.
The SPEAKER : Members for
Balcatta, I call you to order for the first time. Member for Wanneroo, I call
you to order for the second time.
Mrs A.K. HAYDEN : Do you want
me to speak slowly? I can speak slower if you like.
Several members interjected.
The SPEAKER : Members, when
you get on your feet and you want to answer a question or ask a question, you
want silence. You might think you are funny, and the minister can laugh, but
you are disrupting Parliament, and that is the most important thing in this
chamber.
Mrs A.K. HAYDEN : Like the MBA
modelling, does the minister also reject SQM's researcher's
findings; and, if so, will the minister explain to the house the basis on which
he rejects these results, or is he just trotting out Labor propaganda rather
than standing up for hardworking Western Australians?
AnswerView source ↗
I think there is a question in there
somewhere! I will try to sift through it; I had it three times. I will come up
with something. One thing I am not going to do is stand here and have a running
commentary on the latest modelling. I will speak about the needs of Western Australians,
in particular young Western Australians, trying to get into their first home.
What we ought to understand is what drives the outcomes for those people who
enter the property market, and that is a strong economy. We only get a strong
economy through strong leadership and the McGowan government has delivered
strong leadership. The very fact that we are prepared to put a number next to
the employment figure that is needed to create the sorts of outcomes that Western
Australians are looking for is a testament to that leadership, and is all the
evidence that is needed to know about our commitment in this area.
Another thing that we need to
understand is the changing nature of the industry; the changing nature of the
property market. Rentals will come and go. The member for Darling Range might
remember in the Hawke–Keating years, when Treasurer Keating introduced
similar reforms —
Mrs A.K. Hayden interjected.
The SPEAKER : I will take away
your supplementary if you keep interrupting.
Mr P.C. TINLEY : They were similar,
but not exactly the same. In 1987, they laid large claim to the fact that rents
went through the roof in Sydney and Melbourne. The fact is that the rental
vacancy rate in Sydney in 1987 was one per cent. Rentals come and go with the
economy. The member should be very careful about what assumptions she relies on
as evidence.
One point I do want to make today is
that when the McGowan government decides to lead, it leads with the industry
that it is talking to. Unlike those opposite, we actually have an ear to what
the industry's needs are. We understand that the building and
construction industry in Western Australia is in probably the worst set of
circumstances in recent history. Housing construction will fall below the 18 000
new houses that the Housing Industry Forecasting Group identified. That creates
a significant challenge. The McGowan government is up to meeting that challenge
and supporting the industry. The industry has spoken to us. I will quote to the
house what Stockland chief executive, Mark Steinert, said. Do not forget that
Stockland is one of the largest listed property development companies in this
country. Mr Steinert spoke about the negative gearing arrangements that the
federal ALP has put on the table for the electorate to make a choice on at the
upcoming federal election. I quote —
''Our business will rip,''
he said at the Property Council of Australia's annual congress in
Darwin.
''We're all about new
product. At the end of the day, half our buyers are first-time buyers, and 80 per
cent of our buyers are owner-occupiers. If the investors are going to
participate in the market like they have in the past, that means they're
all pointing at our product and other developers' products'' ...
Member, we listen to the industry.
We are a market-facing government. We understand the concerns and issues in
relation to it. That is why since coming to government, on the two per cent low
deposit arrangements around Keystart, we have delivered over $900 million of
extra lending into that book. That is leadership—nothing like that was
shown on that side.
somewhere! I will try to sift through it; I had it three times. I will come up
with something. One thing I am not going to do is stand here and have a running
commentary on the latest modelling. I will speak about the needs of Western Australians,
in particular young Western Australians, trying to get into their first home.
What we ought to understand is what drives the outcomes for those people who
enter the property market, and that is a strong economy. We only get a strong
economy through strong leadership and the McGowan government has delivered
strong leadership. The very fact that we are prepared to put a number next to
the employment figure that is needed to create the sorts of outcomes that Western
Australians are looking for is a testament to that leadership, and is all the
evidence that is needed to know about our commitment in this area.
Another thing that we need to
understand is the changing nature of the industry; the changing nature of the
property market. Rentals will come and go. The member for Darling Range might
remember in the Hawke–Keating years, when Treasurer Keating introduced
similar reforms —
Mrs A.K. Hayden interjected.
The SPEAKER : I will take away
your supplementary if you keep interrupting.
Mr P.C. TINLEY : They were similar,
but not exactly the same. In 1987, they laid large claim to the fact that rents
went through the roof in Sydney and Melbourne. The fact is that the rental
vacancy rate in Sydney in 1987 was one per cent. Rentals come and go with the
economy. The member should be very careful about what assumptions she relies on
as evidence.
One point I do want to make today is
that when the McGowan government decides to lead, it leads with the industry
that it is talking to. Unlike those opposite, we actually have an ear to what
the industry's needs are. We understand that the building and
construction industry in Western Australia is in probably the worst set of
circumstances in recent history. Housing construction will fall below the 18 000
new houses that the Housing Industry Forecasting Group identified. That creates
a significant challenge. The McGowan government is up to meeting that challenge
and supporting the industry. The industry has spoken to us. I will quote to the
house what Stockland chief executive, Mark Steinert, said. Do not forget that
Stockland is one of the largest listed property development companies in this
country. Mr Steinert spoke about the negative gearing arrangements that the
federal ALP has put on the table for the electorate to make a choice on at the
upcoming federal election. I quote —
''Our business will rip,''
he said at the Property Council of Australia's annual congress in
Darwin.
''We're all about new
product. At the end of the day, half our buyers are first-time buyers, and 80 per
cent of our buyers are owner-occupiers. If the investors are going to
participate in the market like they have in the past, that means they're
all pointing at our product and other developers' products'' ...
Member, we listen to the industry.
We are a market-facing government. We understand the concerns and issues in
relation to it. That is why since coming to government, on the two per cent low
deposit arrangements around Keystart, we have delivered over $900 million of
extra lending into that book. That is leadership—nothing like that was
shown on that side.
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