Thursday, 24 February 2022

Social and affordable housing

Ms STALEY (Ripon) (14:08): My question is to the Assistant Treasurer. An extra $20 000 in state government tax on top of a house and land purchase price of $710 000 adds $113 every month for the life of a 30-year mortgage. That is $40 881 extra on the average home loan. Can the minister explain to Victorian first home buyers why it is government policy to force homebuyers in areas like Casey, Cardinia, Wyndham and Melton to pay so much more at a time they can least afford it?

Mr PEARSON (Essendon—Assistant Treasurer, Minister for Regulatory Reform, Minister for Government Services, Minister for Creative Industries) (14:09): I reject the premise of the member’s question. I suspect that the member has probably spent the last 24 hours trying to work a calculator to get to that point. Look, the reality is as a government—

Members interjecting.

The SPEAKER: Order! I just remind members that they have been warned they will be removed from the chamber.

Mr PEARSON:I do not accept the premise of the member’s question. There are a couple of things I would say. With the package of reforms that has been devised, what was being proposed was billions of dollars of commercial benefit to developers—$7 billion over 10 years. In return we asked the developers to make a modest contribution in the millions for social housing—in the millions. Now, on this side of the house we have done more for first home buyers in this state’s history than anyone else. This government have invested heavily to provide the grants for first home buyers. Last year more than 51 000 people received stamp duty concessions or exemptions worth $896 million, and more than 21 000 people received home owner grants worth $275 million. So what does that mean? In 2021 alone we have provided support to first home owners in the order of $1.1 billion—$1.1 billion.

So I do not accept the premise of the member’s question. We have come forward with a package of reforms to try and basically say to developers, ‘If you are in a position where you have got super profits, we are asking that you make a modest contribution to provide affordable housing for people who, for example, are fleeing family violence, for Indigenous Victorians, for migrants, for refugees’. It is a fair proposition, and I reject the premise of the member’s question.

Ms STALEY (Ripon) (14:11): Yesterday the Premier said the future of this tax proposal was uncertain. Then in question time the Assistant Treasurer said the tax was ‘a matter for the Parliament’ and was being reconsidered and then blamed the property council for its problems. Victorians who are saving to purchase a new house and land package want some certainty. Does the government intend to proceed with this new tax or not?

Mr PEARSON (Essendon—Assistant Treasurer, Minister for Regulatory Reform, Minister for Government Services, Minister for Creative Industries) (14:12): Look, the government has worked with the sector and engaged with the sector in good faith. You cannot just pick and choose reforms, you have got to consider the whole package. In light of recent comments, as a government we are considering our position.