Interview with Narelda Jacobs on 10 News

Narelda Jacobs

Well, Shadow Assistant Housing Affordability Minister Andrew Bragg has his own set of solutions and joins us now. First of all, Senator, should investors be de-incentivised?

Senator Andrew Bragg

Well, Narelda, we don't think that increasing taxation on something will give you more of something. If you have higher taxes on housing, there will be fewer houses by definition. We think it's a very bad idea. The reality is that you can't trust this Prime Minister. He's already reneged previously when he said that he wouldn't change the stage three tax cuts and also in relation to superannuation taxes.

Narelda Jacobs

Yeah, well, the PM says he won't be taking negative gearing to the next election. But the Greens this morning also said they want to negotiate some changes. As you said, since we have heard this kind of language from the PM before, could we see some movement on negative gearing before the election?

Senator Andrew Bragg

Well, I think that would be the wrong direction for the country because we want to see housing policies where young people can get into houses, and that requires us to build more houses. You need to build more housing supply. If you have higher taxes through changes to negative gearing, then that means we're going in the wrong direction. I think the Greens have a lot of crazy ideas here on housing, and I'm hoping that the Prime Minister, actually, on this occasion, is telling the truth, and they won't be touching negative gearing.

Narelda Jacobs

The PM and Treasurer say they didn't order Treasury's costings of these investor tax changes. Do you think they've been secretly plotting something here?

Senator Andrew Bragg

As I said before, this is what they said in relation to the Stage Three tax cuts. They said they had no plan to change anything up until two days before making a major change in direction. So, I just think that they have a low level of credibility in relation to these major changes. And I think more broadly on housing, I mean, the government has presided over a massive collapse in housing construction. The government has let over a million people in since the election, which has set fire to the housing market, and increasing taxes won't make it any easier.

Narelda Jacobs

You had the Parliamentary Budget Office look into super, and they found a billion dollars could be saved in rent assistance, but they also said it's unlikely people on rent assistance would have enough in their super to buy a house. Why pursue this policy?

Senator Andrew Bragg

Well, superannuation is the people's money, and an average 38-year-old has about $90,000 in their superannuation account. Even in a market like Sydney, being able to access that for a deposit would make a material difference to a person in that age bracket. That's why we think it's a very important policy offering that we have for the next election that people can use their own money to buy a house rather than in Labor's world, where you have to rely on the government for taxpayer-funded housing handouts, where the government would own up to 40% of your house in the Help to Buy scheme.

Narelda Jacobs

Experts say taking super out for a deposit would only flood the market with cash and push up prices. What if it not only has the opposite effect, but it also leaves Aussies with nothing in retirement and then having to pay off an inflated house.

Senator Andrew Bragg

Well, firstly, the key determinant for your success in retirement is not your superannuation balance, it's your housing status. And millennial's and Gen Z's are too often on a trajectory never to own their own house. So we make no apology in providing all the resources available to people to get a first home. And more broadly, the issue of the market changes you just mentioned, Narelda. It's an $11 trillion market, the housing market in this country. Allowing people to use their super will not make a major difference to prices.

Narelda Jacobs

Where do you think Labor's housing bill will end up this year?

Senator Andrew Bragg

Well, I don't think it will get past the Senate because we are against the policy where 40% of people's houses are owned by the government. We don't believe in that sort of idea. The Greens seem to have their own problems with it for different reasons. I think that is stalled. The other Bill they have in the Senate promotes Build to Rent, where foreign fund managers would own Australian housing and then rent them out to Australians. We are also against that. I'm hoping that the Senate will hold the line on that bill as well.

Narelda Jacobs

There are some Coalition colleagues, though, that do want negative gearing to be looked at. Will the party be pushing that?

Senator Andrew Bragg

Look, there's always different views in the Liberal party and different views in all parties, I imagine. But we are very much of the view that increasing taxes on housing is not a good approach. That's a position of Peter Dutton. That's a position of Michael Sukkar and Angus Taylor and me. That will be our policy for the next election. There'll be no changes to negative gearing or to CGT under the Coalition.

Narelda Jacobs

All right, Senator Andrew Bragg. Thanks for joining us on Lunch Time.

Senator Andrew Bragg

Thanks, Narelda.

[Ends]