QUESTIONS WITHOUT NOTICE
Dr CHALMERS (Rankin—Treasurer) (14:09): Thank you to the honourable Leader of the Opposition for his question. As the Reserve Bank Governor made really clear in late July, negative equity remains very limited. It affects less than one per cent of all borrowers, in the view of the RBA.
The Reserve Bank Governor said: … the most recent data suggest that, notwithstanding the price falls, negative equity remains very limited, affecting less than 1 per cent of borrowers. We saw it again in the earnings data released by the Commonwealth Bank in August, which showed that just half a per cent of the Commonwealth Bank book was in negative equity. Just this week, the Commonwealth Bank's Executive General Manager of Home Buying Marcos Meneguzzi said that they had fewer customers in negative equity now than at the same time last year.
He said: We look at the book overall, and ... in the results we have, the number for the book overall, that number is still very low. The negative equity was smaller than it was the same time last year. This was at the AFR Property Summit.
I don't remember a peep from those opposite when negative equity was more than twice as high as it is now on their watch. In fact, I can't find them mentioning the phrase once in parliament in 2019 when that was the case. In April of 2019, the RBA reported just over two per cent of borrowers were in negative equity.
This was because median dwelling prices fell by 4.3 per cent between 18 May and 19 May. Sydney values dropped more than 10 per cent and Melbourne values by almost 10 per cent over that year, according to CoreLogic, on their watch. If they were being upfront here, they would acknowledge, as all of the experts have, that there are a number of factors playing out in the housing market.
The RBA Assistant Governor said— The SPEAKER: The Leader of the Opposition on a point of order? Mr Taylor: Relevance. The question was about the impact of Labor's toxic taxes, not about the opposition.
It was on the impact of Labor's toxic taxes. The SPEAKER: The question wasn't that. The question was: how many Australians owe more to the bank than the home is worth?
That was the question. I know there are other— Honourable members interjecting— The SPEAKER: Order! Order!
We'll deal with this in an orderly way. Mr Taylor interjecting— The SPEAKER: The Leader of the Opposition. I'm dealing with— Dr Chalmers interjecting— The SPEAKER: Order!
The Treasurer is going to resume his seat while I deal with this. We'll just do this in an orderly way. Dr Chalmers: You were all doing better under Sussan!
The SPEAKER: The Treasurer is now warned. If I ask you to take your seat and you interject, you may not be here to answer the rest of the question. Now, the Leader of the Opposition, the question was: how many Australians owe more to the bank than the home is worth?
That was the question. There were other— An opposition member interjecting— The SPEAKER: I just asked the Treasurer not to interject while I was speaking. I'm asking you to show me the same courtesy.
What you added to there—I understand that's part of the question, but the Treasurer gave a specific figure about the question he was asked, so I'm not going to take points of order when ministers are answering directly the questions they were asked. As a courtesy to the Leader of the Opposition and his office, I did so. I just want to let everyone know I'm not going to take frivolous points of orders.
Dr CHALMERS: Earlier than usual in Question Time, here is the daily reminder that the coalition was doing better under Sussan Ley than it's doing under this opposition leader. The SPEAKER: The Treasurer will return to the question. Dr CHALMERS: The point that I'm making—I'm asked about the drivers of the weakening of house prices in our economy.
Sarah Hunter, the RBA Assistant Governor, has made it made it clear that there are multiple things running through the market right now. Anthony Miller from Westpac said: … three interest rate increases and an element of uncertainty would normally see applications for first home buyers come off anyway. The point that they are making is that there is a number of factors playing out in the housing market.
Despite that, negative equity is lower under us right now than it was under those opposite. (Time expired)