QUESTIONS WITHOUT NOTICE

Senator WONG (South Australia—Minister for Foreign Affairs and Leader of the Government in the Senate) (14:42): What I can say is this. I can absolutely guarantee that our changes are motivated by a desire to bring on more housing supply. And I can guarantee that your opposition to the government's changes would have resulted in less housing supply in this country.

I think we can all see what the opposition is doing, and what I would say is that I think we know some of the reporting has not been accurate. I would refer you to the clarification both from the NAB and from Ray White real estate today. Let's again look at the facts.

The budget made no change for people who already negatively gear property. I remind the senator who supports higher taxes and larger deficits, Senator Hume, that the arrangements that were in place up to budget night remain grandfathered in. Secondly, I would make the point that negative gearing and the capital gains tax discount of 50 per cent can still be used for new builds.

So, when people choose to invest in housing, they will be investing not just in their future wealth and assets but also in the assets of the nation. The ABS, the Australian Bureau of Statistics, have pointed out that these settings have already made a difference. There are more investors borrowing to build new homes than ever before, and there are fewer investors competing with first home buyers for existing homes.

In the June quarter there was a 27 per cent increase in investor loans for new builds and a 20 per cent increase for construction loans. What all of this means is that we are already seeing the market responding to the incentive for additional supply. (Time expired) The PRESIDENT: Senator Hume, first supplementary?