Interview with Tom Connell on Sky News

Subjects: Home Guarantee Scheme, Stamp Duty, Housing Australia Chair resigns

E&OE………

Tom Connell

Welcome back. A bit happening in housing this week, let's talk to the Shadow Housing and Shadow Productivity Minister, Andrew Bragg now, for more on this, thank you for your time. Look, the big change coming in in October, obviously, was basically anyone buying a first home can use 5% for the government-backed scheme. Makes a big difference, I guess. I think of the election, you've both had a lot of demand-driven programmes. So, what do you make of this one and how it's anecdotally affecting things out there?

Senator Bragg

Tom, the government have failed to get houses built despite having a $60 billion kitty to spend on housing. And now we see the opening up of this government insurance scheme, and it's now putting pressure on entry-level houses. So, we're seeing a spike in entry-level first home prices, as a result of the government recklessly opening this programme up to anyone.

Tom Connell

The Minns Government, I'm just thinking of general housing and some of the things you've been speaking around, Yes, in my backyard - being a YIMBY. Is the Minns Government approach right now the most revolutionary? Do they get a tick from you, overall, for actually trying to tackle the problem properly?

Senator Bragg

Yes. I think in general, the approach is right, but the execution clearly needs some more effort because he's long on rhetoric and he's saying the right things, but we haven't yet seen the big uptick needed to get the supply in New South Wales.

Tom Connell

Right, it can take a bit of time. So, do you give him a bit more? Why is it failing then, if it's rhetoric over performance?

Senator Bragg

Well, I think in the case of, this is a very New South Wales-centric answer, but Sydney Water, for example, is an agency which really holds back new housing supply in South-West Sydney and North-West Sydney, where a lot of the action is. And the Premier could actually get it to do more; he's the Premier of the State, so, I think sometimes it's very clear that politicians have a set of talking points, but there's no follow through. I mean, the Labor Government in Canberra is very good at talking about housing and how much money they're spending, and they brag about the billions and trillions and Dr Evil-style figures that they have, but, they don't actually build houses. So, you've got to actually have the right administrative arrangements and market structure to get the houses built.

Tom Connell

What about the RBA Governor talking about downsizing? Do we need a big shake up of all the various effective tax punishments people get for that - retirees?

Senator Bragg

They do get punished, but stamp duty is insidious for all people, and it's not a good tax arrangement. For first homeowners, I think it's a really important change that some states have made to exempt them from that tax, and I think that's really where the focus should be. Of course, downsizers deserve attention because they could provide more supply into the market, but I would be personally starting with first home owners.

Tom Connell

Okay, and there's a lot thrown their way, I suppose. Just finally, briefly, at a working site this week, do you ever talk to tradies and builders and stuff and learn something while you're out there and turn it into policy?

Senator Bragg

Well, I found this week that some of the tradies actually watch a bit of Sky News, watch a bit of YouTube, so they're quite plugged into the chaos and confusion at Housing Australia, and we've just seen the Housing Australia Chair is going to resign. But, I think the questions for Clare O'Neil are what's going on at Housing Australia? Why is this organisation so sick? The government has given billions of dollars but it doesn't build houses. It really is one of the greatest disasters, maybe it is, in fact, the closest thing to pink batts 2.0.

Tom Connell

All right. Got to leave it there. Apologies, short today, Andrew Bragg. Thank you.

[Ends]

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