‘Help to Buy’ Bill Fails to Address Australia’s Housing Crisis

Australia has a housing crisis fueled by excessive immigration and a shortage of skilled tradespeople. The Help to Buy Bill 2023 is fundamentally flawed and unlikely to offer real solutions.

Why are we importing millions of migrants when Australians are sleeping on the streets?

The major parties talk about the housing crisis but fail to make a real impact.

One Nation is the only party that can be trusted to put Australians first.

Transcript

We have a housing catastrophe due to rampant immigration—excessive, reckless, record immigration. We also have a housing crisis because we don’t have enough tradies to build the houses that we need. The Help to Buy Bill 2023 is a bill that won’t help anyone. Right now, Queenslanders, in what should be the richest state in the world, are sleeping under bridges and on riverbanks. In one of the world’s richest states, working families with children are living in cars, coming home at night to wonder if their kids are still there. Where do they toilet? Where do they shower? It’s plain inhuman. Rents are skyrocketing—if a rental can be found. House prices are reaching record highs. This is a housing crisis, one of the worst we’ve faced. It’s an inhuman catastrophe. 

Last year, the federal government under Anthony Albanese brought in 517,000 net migrants. This year, after being promised that we would have lower immigration, we are tracking to have another new record—one above last year’s. How can you bring in more than a million people in two years? That’s hundreds of thousands of houses. How can you build them? We aren’t catering for the people already here, and now we’re bringing in record numbers—a million in two years. That’s 400,000 new houses needed, in addition to the already high demand and the people living homeless at the moment. 

The Albanese government, though, wants to look like it’s doing something—not do something but look like. Enter this Help to Buy plan. Under this plan, the government wants to own a significant part of your house. If it’s an existing place, the government wants to own 30 per cent, and, if it’s a new place, 40 per cent, with the government paying for part of it with low-income earners. While a 40 per cent subsidy might sound attractive, it’s fatally flawed. If the government just borrows more money for this plan, then one thing is going to happen. When you give 40 per cent more money to people to buy a house, house prices are going to go up. House prices will go up. The bill’s core concept and premise is flawed and possibly a lie. We can’t subsidise our way out of a house price problem. Subsidies always increase prices and have throughout history. Looking at the bill’s details, or lack of details, the problem is worse. I’ll look at some of the criteria in a minute. 

Thirdly, let’s look at the constitutional basis. This bill is completely outside the federal government’s powers. It’s highly complex. The government has tabled a late amendment to the bill, attempting to clarify a set of constitutional issues—too complex. 

I’ll go back to the immigration. In addition to rampant immigration of people coming into the country, prior to COVID, the number of temporary visa holders in the country was around 2.3 million people. As of the end of 24 July, that number is now 2.8 million—more than 10 per cent of our population—all needing a roof and all needing a bed. These are hard numbers and facts. This is what’s causing the housing catastrophe. These are the hard numbers and facts, as I said, yet the government has continued to lie, claiming, ‘We’re just catching up with immigration.’ Really? We haven’t just caught up; we’ve blown the record out of the water, not only for people on resident visas but also for new immigrants coming in. We’re nearly half a million people above the record for resident visas. Using the average household size of 2½ people per household implies the need for more than 200,000 houses just to cater for new arrivals. It’s actually 400,000. This is what we’re seeing in our country. 

Then there are the details. For an Australian who enters into a Help to Buy arrangement, where the government owns part of their home, what happens if they renovate their home at their own expense, spending hundreds of thousands of dollars and thousands of hours swinging hammers and pulling up carpet, and, as a result of their renovations, their $500,000 home increases in value to $600,000? I wonder whether the minister knows how much of that Australian’s renovation profit the government will take for doing nothing. I wonder whether the minister knows that the income thresholds are set nationally—$90,000 for singles and $120,000 for couples—despite the average house price varying from $504,000 in Darwin to $1.2 million in Sydney. I wonder why the government is not adjusting the income threshold from state to state. What are the price thresholds for houses eligible under this bill, and why haven’t these been set in the legislation? Why are we bringing yoga teachers into the country, through immigration, when we need tradies? Yoga teachers are wonderful, but we need tradies to get on with the job here. 

The government has appointed three sets of bureaucrats as part of its solution to the housing crisis. That’s just adding to the complexity and inefficiency. It’s adding to the catastrophe. We need tradies to come into this country. We need people to be vetted properly, to bring in their skills and to contribute. We have so many people in this country out of work, living on welfare, and not contributing. We have an abundance of people with good qualifications who want to come into this country. We can put them to work and fix the housing crisis quickly. These are just some of the issues that I’ll be exploring more in the committee stage. I want to put those comments back on the record.