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Gladys Berejiklian says 'average person' should be able to buy a house in Sydney Gladys Berejiklian says 'average person' should be able to buy a house in Sydney
(about 2 hours later)
A good society gives people “choice” including to live and buy a house in Sydney, the new premier of New South Wales, Gladys Berejiklian, has said.A good society gives people “choice” including to live and buy a house in Sydney, the new premier of New South Wales, Gladys Berejiklian, has said.
The comments were made in reply to deputy prime minister Barnaby Joyce’s suggestion that people wanting to buy a home look further afield in response to reports that Sydney is now the second least affordable housing market in the world.The comments were made in reply to deputy prime minister Barnaby Joyce’s suggestion that people wanting to buy a home look further afield in response to reports that Sydney is now the second least affordable housing market in the world.
Speaking to Radio National on Wednesday, Berejiklian touted her government’s efforts to keep prices under control, emphasising supply as the most important factor in house prices and refusing to be drawn on whether the federal government should restrict negative gearing tax deductions to restrain demand.Speaking to Radio National on Wednesday, Berejiklian touted her government’s efforts to keep prices under control, emphasising supply as the most important factor in house prices and refusing to be drawn on whether the federal government should restrict negative gearing tax deductions to restrain demand.
On Wednesday Joyce said: “I get annoyed when people talk about that the only house apparently that you can buy is in Sydney and it’s too dear.”On Wednesday Joyce said: “I get annoyed when people talk about that the only house apparently that you can buy is in Sydney and it’s too dear.”
Joyce rattled off markets where houses were cheaper, including Tamworth, Armidale and Toowoomba.Joyce rattled off markets where houses were cheaper, including Tamworth, Armidale and Toowoomba.
“We believe that houses will always be incredibly expensive if you can see the Opera House and the Sydney Harbour Bridge, just accept that,” he said. “I did move out west so I can say this, if you’ve got the gumption in you and you decide to move to Charleville, you’re going to have a very affordable house.”“We believe that houses will always be incredibly expensive if you can see the Opera House and the Sydney Harbour Bridge, just accept that,” he said. “I did move out west so I can say this, if you’ve got the gumption in you and you decide to move to Charleville, you’re going to have a very affordable house.”
Asked about Joyce’s comments, Berejiklian said simply that “a good society gives people choices”, which is why she had nominated housing affordability as one of her top three issues for her government.Asked about Joyce’s comments, Berejiklian said simply that “a good society gives people choices”, which is why she had nominated housing affordability as one of her top three issues for her government.
“The average person that lives in Sydney, if they want to buy a house in Sydney, that shouldn’t be out of reach for them,” she said.“The average person that lives in Sydney, if they want to buy a house in Sydney, that shouldn’t be out of reach for them,” she said.
Berejiklian said that housing affordability was “top of the mind for the prime minister” and the state looked forward to working with the federal government.Berejiklian said that housing affordability was “top of the mind for the prime minister” and the state looked forward to working with the federal government.
Asked about whether the federal government should restrict or axe negative gearing tax concessions, Berejiklian said her “initial focus” would be on what New South Wales could do.Asked about whether the federal government should restrict or axe negative gearing tax concessions, Berejiklian said her “initial focus” would be on what New South Wales could do.
“I don’t feel [negative gearing] is something I would necessarily touch in relation to housing affordability.”“I don’t feel [negative gearing] is something I would necessarily touch in relation to housing affordability.”
Berejiklian’s comments contrast with her former leadership rival, the housing minister, Rob Stokes, who strongly criticised negative gearing. In November Stokes argued that it did nothing to improve supply but advantaged investors who reduced their taxable income at the expense of other Australians.Berejiklian’s comments contrast with her former leadership rival, the housing minister, Rob Stokes, who strongly criticised negative gearing. In November Stokes argued that it did nothing to improve supply but advantaged investors who reduced their taxable income at the expense of other Australians.
Berejiklian said the biggest factor for housing affordability was lack of supply. When questioned about the large increases in housing approvals and developments that had not dented prices, the new premier said prices would have increased even more if not for that extension of supply.Berejiklian said the biggest factor for housing affordability was lack of supply. When questioned about the large increases in housing approvals and developments that had not dented prices, the new premier said prices would have increased even more if not for that extension of supply.
Berejiklian said the government was “very active” in making investments in social and affordable housing.Berejiklian said the government was “very active” in making investments in social and affordable housing.
According to reports, the state has developed a policy that will require new housing developments on rezoned land to dedicate 5% to 10% of the extra floor space for low-income homes, which will be managed by community housing providers.According to reports, the state has developed a policy that will require new housing developments on rezoned land to dedicate 5% to 10% of the extra floor space for low-income homes, which will be managed by community housing providers.
She said it would consider options to allow people with “essential jobs” to live near where they work, citing bus drivers in her northern Sydney seat of Willoughby who came from the the central coast to work.She said it would consider options to allow people with “essential jobs” to live near where they work, citing bus drivers in her northern Sydney seat of Willoughby who came from the the central coast to work.
On Wednesday the shadow treasurer, Chris Bowen, said Joyce’s comments on housing affordability show how out of touch he and the government are.
He said country life “suits many people” but “is not an option for everyone” and the suggestion was unrealistic because of high unemployment in Joyce’s electorate.
Bowen said the government should develop a housing affordability policy “instead of lecturing people, telling people to get a better job or get rich parents or move to Charleville”.
“It should deal with negative gearing. The treasurer is in the UK looking at options for housing affordability. Good on him.
“Why doesn’t he look at what the Cameron conservative government did, which was to reform the tax concessions for property investment?”
The federal treasurer, Scott Morrison, recognised housing affordability as a problem in a major speech in October but has so far only canvassed supply-side policies including encouraging states to release more land.The federal treasurer, Scott Morrison, recognised housing affordability as a problem in a major speech in October but has so far only canvassed supply-side policies including encouraging states to release more land.
Last week the new assistant minister to the treasurer, Michael Sukkar, whose responsibilities include housing affordability, did not rule out a proposal to make owner-occupiers’ home mortgages tax deductible, which housing economists warned was expensive and ineffective.Last week the new assistant minister to the treasurer, Michael Sukkar, whose responsibilities include housing affordability, did not rule out a proposal to make owner-occupiers’ home mortgages tax deductible, which housing economists warned was expensive and ineffective.