Interview with Kieran Gilbert on Sky News

Subjects: Home Ownership, Super for Housing, Lending Standards

E&OE………

Kieran Gilbert

It looks like housing is going to be another big issue heading into the Federal Election within the next 12 months. One of the key spokespeople for the Coalition is the Shadow Assistant Minister for Home Ownership, Andrew Bragg. Senator Bragg, great to see you as always. Just looking at your speech to the Sydney Institute, a number of things to pick up. The regulations worked to an extent, the APRA regulation on banks and so on, to make sure they've got sufficient checks in place, but it hasn't worked in terms of supply for first home owners. What's your concern? How do you change it?

Senator Bragg

Well, KG, it's very interesting to hear the Labor Minister for Housing talk constantly about the institutional owners and super funds coming in to build all the new houses. What you never hear them discuss is the fact that we actually want to see individuals, people, get loans so they can have their own mortgage in their own house. And I think that there is a significant cost of regulation here. And we want to look at how we can cut some of that cost to ensure people can actually get a mortgage when they're on an average income.

Kieran Gilbert

Other nations have done this as well where, say, an APRA type organisation in Singapore has to look at the impact not only on the banking sector, but the impact of these regulations on the broader economy. Is that something that makes sense to you? Is it something you want to do?

Senator Bragg

We need to look very closely at the impact of capital adequacy rules, responsible lending rules, and whether these rules could be done in a way which was going to guarantee that the banks would be unquestionably strong, but they could also provide the capital needed to first-home buyers and also to small businesses, because we need to have an economy where people can get access to capital. Otherwise, we are going to be giving up on first-home ownership. And the reason that Labor don't talk about these things is because they have given up on first-home ownership. And their solution is just to wheel the big super funds in and get them to build all the houses.

Kieran Gilbert

Because right now in Sydney, and just looking at your speech, you touch on this, it's not realistic to be able, as a first home buyer, to afford the sort of mortgage you need to get into the market in the first place. The median price, what, is 10, 12 times the average wage of a household.

Senator Bragg

It's becoming unaffordable to access the Australian dream. And for millennials and Gen Zs, unless there is a significant change here, they will never own a home. And that's why we need to build more houses. It's why we need to look at super and to look at the lending regulations, because we want to tilt the playing field in favour of first-home buyers, rather than just say, look, it's all too hard, and we'll just wheel in the big super funds and the foreign fund managers to build all the houses; which is Labor's very lazy solution.

Kieran Gilbert

The Super for Housing Plan, you're going to, obviously, it sounds like you're going to take that again to the next election. Will it be expanded, though? It was up to $50,000 to help first home buyers get in with a deposit. Are you looking at going higher than that?

Senator Bragg

Well, clearly, Kieran, you need more than $100,000 to get a deposit in Sydney. So that is a, $50,000 will not do the job. And we know that the key determinant of your success in retirement is not your superannuation balance, it is your home ownership status. So we are desperate to avoid seeing generations of Australians locked out of the home ownership market. And so that's why the Senate is currently looking at all these thresholds with a view to making sure that we make it work for people, not work for big super funds.

Kieran Gilbert

What do you say to the argument though, that you're going to see a generation of workers have their superannuation nest egg diminished by a policy of this sort? You've copped this flak from the Government in months gone by and that they don't want to see superannuation, the foundation of it, undermined by a policy like this?

Senator Bragg

Well, the idea that superannuation is the only pathway to retirement is totally flawed. As I say, the key factor in your retirement is your home ownership status. At the moment, millennials and Gen Zs are not going to own houses. So it is far better for people to have a home in retirement, which is why that's our steely focus. And the reality is that if we had this policy in place tomorrow, there would be many Australians that would be able to get onto the ladder of the housing market because they would have a deposit.

Kieran Gilbert

And you're looking at something like $100,000, is that the ballpark?

Senator Bragg

That's under consideration...

Kieran Gilbert

Superannuation access?

Senator Bragg

Yeah, that's under consideration at the moment. And I think these policies have to work for people. They can't be so ridged that they don't work. And the reality is, if you look at this Help to Buy scheme, I mean, the caps were so low that even if it was legislated by the Parliament, it wouldn't have been effective anyway.

Kieran Gilbert

Shadow Assistant Minister for Home Ownership, Andrew Bragg, appreciate it.

Senator Bragg

Thanks, KG.

[Ends]