They were once parliamentary allies but finance minister Katy Gallagher today fired shots at Labor defector Fatima Payman for asking basic questions about housing affordability in .
Senator Payman left the ALP and became an independent senator for Western in July, citing irreconcilable tensions with her former Labor colleagues over the Israel-Hamas conflict.
During Senate Question Time on Thursday, Ms Payman asked Senator Gallagher whether Labor was going to get rid of tax breaks, such as negative gearing, to bring prices down for wannabe home-buyers.
She also asked if Labor was going to curb foreign investment – which has historically driven house prices well above affordable levels for the average n income-earner – and criticised the government’s help-to-buy scheme.
That scheme allows first home buyers to purchase property with a deposit of less than the standard 20 per cent, which lowers the barrier to entry.
Ms Gallagher said she would have expected that question from a member of Pauline Hanson’s One Nation Party – rather than Ms Payman.
‘She’s changed her position on help-to-buy since crossing the chamber,’ Ms Gallagher told the Senate.
One Nation has previously called for reforms to ’s foreign investment rules to make essential services – such as power, water, telecommunications, roadways, ports, and housing – off-limits for non-citizens.
Ms Gallagher continued: ‘It was part of a suite of policies we took to the election, and when we go to the election with policies, we intend to go through with them.’
She said the government would not tinker with negative gearing, and said Labor planned to address the issue by building more than 1.2 million houses.
Ms Payman said her constituents felt the housing market was ‘rigged’ against them and had asked if the government would cap negative gearing, or stop foreign investors from buying property and driving up prices.
Ms Gallagher replied, saying the question about foreign ownership was ‘very similar’ to a recent question from One Nation Senator Malcolm Roberts.
‘It is a very very small amount – I can’t remember the figure I gave to Senator Roberts – but it’s absolutely minuscule in terms of housing,’ she said.
The minister said there were strict conditions on foreign ownership, such as a rule stating owners had to live in the property rather than renting it out, and insisted the shortage was not about foreign investment.
‘I am much more used to those questions coming from One Nation,’ she said.
‘It’s a very small part and it’s often thrown out there as a housing pressure and it’s simply not the case. We need to build more housing.’
Negative gearing refers to where an investment property owner’s expenses are greater than the income they earn from their home. ‘s tax system then allows workers who are negatively geared to deduct that loss against their other income, such as their salary.
Former Labor leader Bill Shorten took a policy of abolishing negative gearing to the 2019 election however, Anthony Albanese ditched the policy in the wake of Labor’s defeat that year.