CANBERRA, ACT, May 10 -- The Treasurer of Australia issued the following transcript:
Note
Joint press conference with
The Hon Clare O'NeilMP
Minister for Housing
The Hon DrAndrew LeighMP
Assistant Minister for Productivity, Competition, Charities and Treasury
Subjects: $2billion housing infrastructure fund, federal Budget, Farrer by‑election
Andrew Leigh:
Indeed, well, good morning. My name is Andrew Leigh, the local member for the seat of Fenner, and the Assistant Minister for Productivity, Competition, Charities and Treasury. I'd like to welcome you all today to Belconnen, in the heart of my electorate. There's plenty of gifts that you can give mums around Australia who are celebrating Mother's Day. Flowers are good. Brunch is better. But maybe the best gift of all might be providing a housing policy that allows the adult kids to move out oneday.
What we're doing here is investing in housing through the Housing Australia Future Fund backed by Australia's largest superannuation fund- 315 affordable homes that are going to be available right in Belconnen, close to Lake Ginninderra, public transport and all the amenities. And the announcement we're making today is going to see more housing flow to more parts of Australia, not just unlocking more supply directly, but also working with states and territories, on reforms that will see them fast track housing.
As the Assistant Minister for Productivity, I'm really passionate about boosting productivity in Australia and the housing sector. We've seen housing productivity go backwards, adjusted for quality over the last 3 decades. This will be great for productivity, great for housing supply, and essential for Australia's families. My pleasure now to hand over to the Treasurer, Jim Chalmers.
Jim Chalmers:
Very good of you, Andrew, to welcome us to your local community. Terrific local member, and also Assistant Minister as well in the Treasury portfolio. I want to acknowledge the absolute mountain of work that Andy does for our government when it comes to the sorts of announcements we're making today. And also Clare O'Neil, the Housing Minister, who's got an important announcement to make as well. Before I get to that, I wanted to say a big Happy Mother's Day to all of the mums, and if you're missing your mum today, we're thinking of you as well. From my point of view to Laura and Carol and my mother‑in‑law, Barbara, Happy Mother's Day. We do Mother's Day on Saturdays in our family, because typically this time of year, we're hanging out with you guys on Mother's Day instead. So big shout out, Laura, Carol, Barbara, all the mums and everyone who's missing their mum today.
The Budget is going to have a really big focus on housing. It will be a housing budget in lots of ways, and that's because we recognise that the housing market is one of the big issues that we have in our economy. Building more homes and making it easier for people to own their first home, I think, is one of the most important objectives of this government, and it will be a central feature of the Budget that Katy and I hand down on Tuesday night here in Canberra. The more of this kind of building, the better. And we've got $47billion now of investment in the housing challenge that we have in our economy, in our society, in local communities like this one right around Australia.
We know that the status quo in the housing market is unfair and it's unacceptable. We don't have enough homes, and too many people are locked out of home ownership. So a big part of what we are trying to do is to build more homes and to make it easier for people to own their first home. Housing supply is overwhelmingly the primary challenge and the primary focus of this government. We also recognise that even though the housing challenge begins with this priority to build more houses, it doesn't end there. We've also got serious challenges in the housing market when it comes to how difficult it is for people, particularly young people, to get a toehold in the market. So our government, and this Budget is focused overwhelmingly on supply, but not just supply.
And today we're going to announce, today we are announcing an extra $2billion to build 65,000 new homes right around Australia. And this is all about the power and water and local road infrastructure that we need to get more projects over the line. It is part of a $47billion investment. It is about supporting local governments and state governments working closely together to build more homes in communities that desperately need and deserve them. Projects like this one are making sure that we can build more homes. So an extra $2billion in a really tight and responsible budget, I think, reflects the priority that we have placed on building more homes.
We understand that the status quo in housing is not working. Too many people are locked out. There aren't enough homes, and so the government is focused on this housing challenge. The Budget will have substantial housing policies to address these challenges. Now, the minister who more than anyone else, is responsible for our very ambitious housing policy is Clare O'Neil. I'll hand you over to Clare, and then we'll take your questions
Clare O'Neil:
Thank you so much, Jim. My friend Jim Chalmers, the Treasurer, is going to hand down a housing budget for our country this Tuesday. Young people across this country see a housing system that's stacked against them. We want those young people to get ahead, and we especially want them to have the chance to own their own home. In all the housing challenges confronting our country, there is one problem that matters more than any other. We have housing challenges in Australia, principally because for 40years, our nation has not been building enough homes now to address that issue. We need to build, build, build, because more housing means more affordable housing for Australians.
Jim talked about the size of our government's agenda. We are now investing $47billion in addressing this very critical issue for our country. We are making a lot of progress, but we see that there's a long way still to go. Our big focus is on building more homes for Australians, and we are making progress with this. We're doing it through the 670,000 homes that have been built. We are seeing good turnarounds in residential construction, with commencements up 26percent on where they were a year ago, and we're, of course, doing it through our essential investments in social and affordable housing. Let me remind you, we're building 55,000 social and affordable homes. The Coalition built 373 in 9years.
Now today, we're announcing a very important new contribution to that $47billion agenda, and that is $2billion to help us do the works that are preventing us getting housing off the ground at the volumes that are needed. It's the work that needs to happen before anyone can even lay a brick. It's the essential work of building the infrastructure that's needed, whether it's sewage, water, electricity, communications, having placed these investments, then we see housing actually come out of the ground really quickly. This 65,000 homes, $2billion in additional investment and part of a really big and bold supply agenda that our government is pushing. Just by final way of comparison, we have heard the Liberals talk previously about housing infrastructure. Remember this, we are now spending $6.3billion in investing in this essential work that helps us get housing off the ground. That is 50 times what the Coalition invested in their 9years in office.
Journalist:
[Inaudible] will the 1.2million home target be met?
Chalmers:
That's an ambitious target, but I'm confident that we can get there if everyone does their bit. What this Budget is all about, what this government is all about is making sure that the Commonwealth is doing its bit. It's not easy to find $2billion in a really tight and responsible budget, but we've done that because we know that housing supply is the main game and dealing with these issues in the housing market is a really important place to focus. And so that $1.2million target is an important target. It's an ambitious target. It will be difficult to get there, but we can get there if everyone does their bit.
Journalist:
[Inaudible] are you confident that if you break any promises in this Budget, that you can weather a similar campaign [inaudible]? And as an aside, do you think it's right - put it this way - have you ever held an official meeting at a friend's birthday party while you're traveling on official business? Do you think that kind of thing's right?
Chalmers:
Well, first of all, when it comes to the comments that we made at election time, I think the comments and commitments that we made at the election reflected the government's primary focus on supply. In fact, at the time, an almost singular focus on supply, in addition to the 5percent deposits. I think the onus is on governments if they come to a different view on major policies like those which are now being speculated about ahead of Tuesday night's Budget, then the responsibility for a government, if it comes to a different view, is to explain why.
So I'm not pre‑empting any policies which may or may not be in the Budget on Tuesday night. But if governments come to a different view, they should explain it. And the comments and commitments that we made at the election reflected, I think, this government's overwhelming focus on building more homes, and that's what this $2billion is all about.
Now, on the issues of, on the second set of issues that you raise, I'm obviously not aware of the details of those engagements, I am aware that Annika Wells referred herself to the independent audit process and the results of that have been announced in the last couple of days, she's repaid with a penalty any of those sorts of matters which were necessary. And so as far as I'm concerned, that matter has now been resolved, and my focus, as I think you would understand Ron, has been on the Budget that we're handing down on Tuesday.
Journalist:
You said that the housing status quo is broken, now clearly you can't change things overnight. but you've been in government 4years now. This announcement today, the Coalition promised $5billion in enabling infrastructure more than a year ago before the last election. Have you been too little, too late in response to housing?
Chalmers:
I'm going to throw to Clare in a moment, but before I do, Clare will have some thoughts on that. But before I do, let me say this. As Clare rightly pointed out, when it comes to this kind of local infrastructure, this $2billion will take the total to $6.3billion that's 50 times what our predecessors invested in this essential work. Now we know that by investing billions in this area, we can get the power and energy and local road infrastructure that we desperately need to get more projects over the line. We need more projects like this one, and that means we need more local infrastructure.
And so we are committing and investing already a substantially higher amount than our predecessors. It's also true that we're playing catch up, because for almost a decade, our predecessors didn't take this challenge seriously. And so $47billion in total investment in the context of budgets which have been very tight and very responsible, including this one on Tuesday, I think this reflects the seriousness with which we are approaching this really important area.
O'Neil:
Well, thanks, Jacob. It's a really good and important question. Let me respond in this way and be really direct. We've had housing challenges, and Australian Governments, whether they be Labor or Liberal, have not done enough about them. That changed when our government was elected in 2022 and there is no question that we have built the boldest and most ambitious agenda to tackle housing that our country has seen since the postwar period- I mean for the last 70years. Now, we are investing $47billion in tackling this problem from every single angle. One of the reasons that housing is such a long running challenge for our country is because it's not just one problem. It's about 40 big public policy problems that are all intertwined. And what you've seen our government do since we're elected in 2022 is every Budget, every election, every MYEFO, we come forward and we crack off the next set of problems.
Now, people are right to be upset about what's happened to housing in our country. I feel angry for the young people of this nation to confront a housing system today that is stacked against them, and we want those young people to get ahead. Now we have made enormous progress in helping us attack this challenge. Remember, almost a quarter of a million Australians have gotten into their first home through the 5percent deposit program. I don't care what the politics is or where you stand, that is a massive amount of people who we have assisted into realizing the Australian dream.
But of course, that's not all, we've invested in finishing builds of 6,000 social and affordable homes, we've got 25,000 social and affordable homes that are incoming, so we're making really good headway on this, but we recognise there's more to be done here. We've made a lot of progress, but we've still got a long way to go, and that's why the Treasurer is about to deliver a housing budget for our country, which will see us address even more of these issues for Australians.
Journalist:
[Inaudible] on housing, given that we know that the Middle East crisis will likely make home building more expensive [inaudible] has Treasury done modelling to suggest how that might affect the 1.2million [inaudible]?
Chalmers:
I think questions on construction costs are obvious as a consequence of the war in the Middle East. Even factoring that in, I think construction inflation is still a little bit below what we inherited from our predecessors, but substantial. We recognise that a lot of the work that plan does with us is about recognising the increases in costs across our economy, beginning with fuel, but not ending, unfortunately, with fuel.
So in terms of modeling, more a sense of monitoring and analysis of what this all means, we meet more or less daily to follow developments in the Middle East and what it means for our people and for our industries. And one of the big challenges in the Budget is recognising and responding to those pressures that are coming at us from the Middle East. People can expect to see, for example, inflation forecast to be pushed higher by the war in the Middle East. Australians and Australian industry are already paying a hefty price for this war in the Middle East, and the Budget takes that into consideration.
Journalist:
[Inaudible] you described last night a bloodbath for the Coalition process. Can you describe the impact that One Nation will have on the government as the other major party and by [inaudible]?
Treasurer:
By my count that's 3 questions. First of all, that wasn't a by‑election, that was a bloodbath for the Coalition. And without a Labor opponent in the middle of a global oil shock, Angus Taylor found a way to shed more than 30 percentage points on the primary vote. And it would surprise me if the clock wasn't now properly ticking on Angus Taylor's leadership. For those of us who followed him closely, it doesn't surprise us a great deal to see him failing as leader, given how badly he failed as Shadow Treasurer. He bet big on division, and he lost big, and he doesn't seem to have learned any of the lessons of that. So that's my take out from the Farrer by‑election.
We do understand that people have very real, very genuine concerns about their role in the economy and their role in our society more broadly, and we don't for one second deny or dismiss the very real concerns that people have. Now the Budget on Tuesday night is not a political document. In fact, it's got a lot of savings, a lot of spending restraint. It's got an element of political risk. It's not a political strategy or a political document, it's an economic plan. But at the same time, it will respond to these, I think, very genuine pressures and concerns and anxieties that people feel, including in the housing market.
People aren't wrong to look at our housing market and think that something is broken. There's not enough homes. Too many people are locked out of housing, particularly younger people. This is a concern raised with us, not just by younger Australians but by grandparents and parents as well. And so these are legitimate concerns that people have often that pushes them to consider alternatives to the mainstream parties. Now Labor is now the last party standing in the sensible center of Australian politics, but we're not standing still. This Budget is going to be a very ambitious budget, a very responsible budget, and it will deal with some of these very real concerns that people have, which we see play out in our politics.
Journalist:
Thanks, Treasurer. Just to follow that, and then I've got a question specifically about the announcement. So kind of picking up on what you've just said there, and your comment earlier about the status quo being broken in housing and in taxation. I mean, was the status quo not broken a year ago? Or is it more that we're seeing that kind of sentiment that was recorded in the votes we saw in Farrer last night, that has obviously been building over the last few months. Has that kind of growth in that sentiment made you arrive at that [inaudible]?
Chalmers:
The Budget was obviously written before the outcome in Farrer but it responds to I think a lot of concerns that people have. That the housing market in this country is not working as it should be. And the reason we want more people to get a toehold in the housing market is because we want more people to get a toehold in our economy.
Our reason for being is to take the aspiration and opportunity, which is central to our country and its economy, and make it available to more people. We don't make judgments or look down on people who've done really well. That's a good thing. We want more people to do well. That's in so many different ways our reason for being as Labor people and as a Labor government. And when it comes to our views on the housing market, it remains our view that the primary challenge in the housing market is supply, and that was reflected in the commitments that we took to the election. It was increasingly clear to us, while the problem still begins with supply it doesn't end there. We are concerned about the composition of the housing market. We do share the concerns shared by a lot of Australians, including a lot of Australian grandparents and parents, that the housing market is not working for enough Australians, and so there will be steps taken in the Budget to address some of those very real concerns.
Journalist:
[Inaudible] the earlier version was announced 2years ago. There's still 3 jurisdictions that don't have implementation plans published, is that - has it not got out the door fast enough? What's going on with that?
O'Neil:
I'll have to get back to you on what's happened with those 3 remaining jurisdictions. I can tell you that the $2billion that we're announcing today will be brought out roughly on a per capita basis amongst all the state and territories, we've got minimum amounts that will go into states and territories. And one thing we've been really careful about in this announcement is making sure that we carve out $500million exclusively for regional Australia. As Housing Minister, I have local councils constantly coming through my office, especially from the regions, saying 'we would really like to help you with the housing challenges in this country, but we just do not have the money to pay for this kind of boring but important part of the problem', which is funding housing infrastructure. So this brings our total investments now up to $6.3billion and we're really proud to be rolling this out around the country.
Chalmers:
Can I just say one more thing about Katina's question, it relates to the last question, this is a new element that will be in the Budget on Tuesday. In addition to this work that we are announcing today, a lot of the work that we're doing with the states and territories around faster approvals, making it easier and faster to build more homes- that will see if we can bed it down properly, tens of thousands of extra homes in addition to these homes. That's because by getting compliance costs down, making it easier and faster to build more homes, we expect to see tens of thousands more homes built which wouldn't be otherwise built were it not for our efforts. And by getting the costs down, I think by something like $3billion a year.
So this is where our housing package, our productivity package in the Budget where it all comes together, it's all shoulders to the wheel to build more homes in our communities and around our country. This important announcement today, but also all of the work that we're doing with the states and territories is about doing everything that we can to build more homes to get to that target that Mark asked about.
Journalist:
Given you're not using new revenue from tax levers to directly fund new tax cuts, is there a risk that this Budget could be perceived as a 'cash grab'?
Chalmers:
It won't be and the best way to think about that is when it comes to a tax package in the Budget, this is about a lot more reform, not a lot more revenue. And our intention here, our objective in the tax package is not to raise tens of billions of dollars in revenue over the course of the forward estimates. A lot of that speculation that the tax changes in Tuesday night's Budget will raise a lot of money, I don't think that they are quite right. We're not looking to raise a heap more revenue under the forward estimates. We are looking to put in place a number of ambitious tax reforms. There won't be big immediate cash splashes in the Budget either.
This is a very, very responsible budget. It's a responsible budget focused on resilience and reform at the same time. It's a budget which will be good for workers, first time buyers and small businesses. That's because we recognise, as we've said in a number of different ways today, that the status quo, whether it's in the housing market or in the tax system more broadly, is not working as we need it to. And so there will be ambitious reforms on Tuesday night, but you shouldn't assume that those ambitious reforms are all about raising tens of billions of dollars in new revenue over the 4years of the Budget.
Journalist:
Treasurer another issue about the wave of violence in Melbourne at night [inaudible].
Chalmers:
Oh, look, I haven't, I haven't seen those requests. It's not ordinarily the role of the military in Australia, but I am aware of the concerns and some of the stories, including stories from your network, Mark, about this violence that we're seeing. Now, we are big supporters of the important work of the police cracking down on this kind of behavior. Obviously, the overwhelming priority of governments at all levels in the community, more broadly, is to keep people safe, including people who are taking advantage of wonderful Melbourne's nightlife. Thanks very much.
Disclaimer: Curated by HT Syndication.
