Sid Sidebottom (Braddon, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Treasurer. Treasurer, why is it important that we act to improve housing affordability after 12 years of neglect?

Joe Hockey (North Sydney, Liberal Party, Manager of Opposition Business in the House) Share this | Link to this | Hansard source

Mr Speaker, I rise on a point of order.

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

If it will assist the member for North Sydney, the Treasurer should ignore the last part of the question.

Joe Hockey (North Sydney, Liberal Party, Manager of Opposition Business in the House) Share this | Link to this | Hansard source

There was only one question.

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

No, the add-on bit—‘why is it important’—but not the last bit, which was argument.

Joe Hockey (North Sydney, Liberal Party, Manager of Opposition Business in the House) Share this | Link to this | Hansard source

I think it was—

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

No. If the member for North Sydney reads the question carefully, the last bit can be deducted and it still makes it a question. That then puts some restrictions on the Treasurer and his answer.

Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

Affordable housing is the cornerstone of a fair and well-functioning society. It is a very high priority for the Rudd government. Affordable housing is also important when it comes to labour force mobility so that people can move more easily.

Housing affordability has declined markedly in this country in recent years. For example, mortgage repayments for the typical first home buyer now consume 28.5 per cent of their gross income compared to 15.2 per cent in the March quarter in 1996. And on top of that we had 10 interest rate rises under the member for Higgins, which certainly put a very substantial dent in housing affordability. Those 10 interest rate rises added something like $400 to the mortgage of an average home owner. Housing affordability just got a lot worse under a decade of neglect, which is why it is such a priority for the Rudd government. It is why we have announced the Housing Affordability Fund, which was announced today by the Prime Minister and the Minister for Housing. We do, for the first time in a long time, have a Minister for Housing, which is an indication of what a priority this side of the House puts on housing. This is all about helping local government reduce the cost of developing new infrastructure. And, of course, we have the Housing Affordability Fund along with that. We have our first home saver accounts and the National Rental Affordability Scheme. We on this side of the House have done more in nine months than those opposite even contemplated in 12 long years.