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Assistant treasurer disputes Commonwealth Bank chief's claim housing not overpriced Assistant treasurer disputes CBA chief's claim housing not overpriced
(35 minutes later)
The assistant treasurer, Michael Sukkar, has taken issue with Commonwealth bank chief Ian Narev’s proposition that housing was difficult to afford but not overpriced, saying first home buyers find housing extraordinarily expensive.The assistant treasurer, Michael Sukkar, has taken issue with Commonwealth bank chief Ian Narev’s proposition that housing was difficult to afford but not overpriced, saying first home buyers find housing extraordinarily expensive.
Narev appeared before the parliamentary economics committee on Tuesday and took issue with a question about high house prices in Sydney and Melbourne.Narev appeared before the parliamentary economics committee on Tuesday and took issue with a question about high house prices in Sydney and Melbourne.
“I am not sure they are saying it is overpriced,” said Narev. “I think they’re saying it’s difficult to afford it and we share that view and what I said before is that should be a matter of concern and it certainly is to us.”“I am not sure they are saying it is overpriced,” said Narev. “I think they’re saying it’s difficult to afford it and we share that view and what I said before is that should be a matter of concern and it certainly is to us.”
Sukkar, who has been charged by Malcolm Turnbull to investigate the housing affordability issue, said he was not sure how Narev made such a statement. Sukkar said the feedback he had received from buyers trying to enter the housing market did not bear out Narev’s view.Sukkar, who has been charged by Malcolm Turnbull to investigate the housing affordability issue, said he was not sure how Narev made such a statement. Sukkar said the feedback he had received from buyers trying to enter the housing market did not bear out Narev’s view.
“I think first home buyers or prospective first home buyers feel property is extraordinarily expensive particularly in Sydney or Melbourne but ultimately the measure of the affordability of a home is really a function of wages,” he said. “I think first home buyers or prospective first home buyers feel property is extraordinarily expensive particularly in Sydney or Melbourne but ultimately the measure of the affordability of a home is really a function of wages,” he told the ABC.
“Over the last few decades we have seen wage growth that has not been able to match house price growth so in that sense I am not sure how Ian Narev made that statement. It’s not consistent with the feedback that I get.”“Over the last few decades we have seen wage growth that has not been able to match house price growth so in that sense I am not sure how Ian Narev made that statement. It’s not consistent with the feedback that I get.”
The Turnbull government has signalled it will make housing affordability measures a centrepiece of the budget in May but Sukkar would not confirm the type of measures the government is considering.The Turnbull government has signalled it will make housing affordability measures a centrepiece of the budget in May but Sukkar would not confirm the type of measures the government is considering.
Labor says their plan to end negative gearing on existing homes and cut capital gains tax concessions will make housing more affordable and save the budget $32bn over a decade.Labor says their plan to end negative gearing on existing homes and cut capital gains tax concessions will make housing more affordable and save the budget $32bn over a decade.
Since Labor announced the policy a year ago, the Coalition has been under pressure on housing affordability. The treasurer, Scott Morrison, first agreed that there were some excesses in negative gearing but then the Coalition ruled out any change in the lead-up to the 2016 election. After the election, reports surfaced that Turnbull and Morrison had lost an argument in cabinet to tighten negative gearing concessions.Since Labor announced the policy a year ago, the Coalition has been under pressure on housing affordability. The treasurer, Scott Morrison, first agreed that there were some excesses in negative gearing but then the Coalition ruled out any change in the lead-up to the 2016 election. After the election, reports surfaced that Turnbull and Morrison had lost an argument in cabinet to tighten negative gearing concessions.
However Turnbull ended last year saying he was still intending to address housing affordability, though last month again he rejected suggestions that the policy would tighten capital gains tax concessions, while admitting treasury had done some research on the measure.However Turnbull ended last year saying he was still intending to address housing affordability, though last month again he rejected suggestions that the policy would tighten capital gains tax concessions, while admitting treasury had done some research on the measure.
On Wednesday Sukkar pointed out Morrison expressed his interest in the programs of some state governments to provide a 25% stake in a home. Victoria is the latest state to trial a program already in place in South Australia and Western Australia.On Wednesday Sukkar pointed out Morrison expressed his interest in the programs of some state governments to provide a 25% stake in a home. Victoria is the latest state to trial a program already in place in South Australia and Western Australia.
Sukkar said it was a “very interesting idea” which could be an exemplar within a federal government framework for states and territories.Sukkar said it was a “very interesting idea” which could be an exemplar within a federal government framework for states and territories.
“Its very hard for me to say specifically one way or another, other than the treasurer is on the record in highlighting his admiration for a policy such as that,” Sukkar said.“Its very hard for me to say specifically one way or another, other than the treasurer is on the record in highlighting his admiration for a policy such as that,” Sukkar said.
Sukkar said the government was keen to ensure all states and territories are “meeting the mark”, given states control most of the policy settings around housing.Sukkar said the government was keen to ensure all states and territories are “meeting the mark”, given states control most of the policy settings around housing.