The Albanese Government has defended falling house prices as a “deliberate result” of its housing policies, as Labor MPs face accusations of celebrating the property market downturn.
The political fight over housing affordability intensified after Labor MP Jerome Laxale shared an annotated headline about struggling Sydney sellers, changing an auctioneer’s assessment that conditions were the “worst” he had ever seen to the “best”. The story detailed a first home buyer couple who secured a two-bedroom Sydney apartment after finding themselves the only bidders at auction.
Labor defends ‘deliberate result’ but opposition not convinced
Speaking on Sunrise on Friday, Health Minister Mark Butler defended the government’s position, arguing its housing policies were giving first home buyers a better chance of competing at auctions. He said first home buyers were increasingly taking centre stage at Saturday auctions instead of having to compete with investors benefiting from tax concessions.
“That’s a good thing. That’s a deliberate result of the policies that we’ve put in place. We want to see first home buyers able to get into the market easier,” Butler said. He did, however, acknowledge buying a home remained difficult, with property prices still historically high compared to wages.
“As a ratio to income, they’re higher than they certainly were when Jane and I were the age of most first home buyers,” he said. “That’s why we’re doing so many things, to help them get a crack at the Australian dream of home ownership.”
Deputy Opposition Leader Jane Hume hit back at the government’s rhetoric, arguing Australians should not be celebrating falling property prices. “Only Labor seems to do this. And you don’t make housing more affordable by making Australians poorer,” Hume said. Hume argued 15 interest rate rises under Labor, combined with rising taxes, had made it harder for Australians to buy a home.
Potential first home buyers eligibility loophole sparks concern
The clash comes as another key component of the government’s housing strategy, the 5 per cent deposit scheme, faces scrutiny over who can access taxpayer-backed assistance. Economists have urged the government to close a loophole allowing Australian residents who own property overseas to potentially remain eligible for the scheme.
Butler defended the scheme, saying applicants were required to declare all their assets, including those held overseas. “If those assets would allow them to put together a deposit of 20 per cent, then they’re not eligible for the scheme,” he said.
Hume also took aim at non-citizens accessing the scheme and its use by some buyers who later turn properties into investments. “This is a taxpayer-subsidised scheme. No wonder Labor is running out of money and increasing taxes if they’re using taxpayer money to subsidise what is a failing housing market,” she said.
She argued the government instead needed to address housing demand by building more homes and “managing migration” before moving to “fix” the economy by lowering taxes and energy prices. Butler defended allowing permanent residents to access the program, pointing to essential workers such as doctors and nurses who had moved to Australia and were filling critical workforce shortages.
Hume maintained taxpayer-funded housing assistance should be reserved for Australian citizens, arguing “citizenship should have its privileges”.
