SENATOR THE HON KATY GALLAGHER
MINISTER FINANCE
MINISTER FOR WOMEN
MINISTER FOR THE PUBLIC SERVICE
MINISTER FOR GOVERNMENT SERVICES
E&OE TRANSCRIPT
TV INTERVIEW
ABC AFTERNOON BRIEFING
MONDAY, 14 APRIL 2025
SUBJECTS: Housing; Russian Ambassador.
PABLO VINALES, HOST: Let's hear from Finance Minister and Labor campaign spokesperson, Katy Gallagher, who joins us from Hobart today. Katy, thank you so much for speaking with us. We heard today from the former RBA Governor Ian Macfarlane, who has warned both your policy, that's 5 per cent deposits, and the Coalition's mortgage deductibility policy would worsen the situation. I'll quote you what he's told the AFR: 'they are stoking up the demand side, which will mainly show up in higher prices'. So, how will this not just increase house prices?
KATY GALLAGHER, MINISTER FOR FINANCE, WOMEN, THE PUBLIC SERVICE AND GOVERNMENT SERVICES, LABOR CAMPAIGN SPOKESPERSON: Well, the advice we've taken from Treasury is that this change to open up essentially and allow first home buyers to get into the housing market with a 5 per cent deposit. It's a scheme that already exists. We want to expand it would not significantly impact on house prices. And I think the other thing that is different to us and what the Coalition is offering is that we are also investing heavily in new supply. We have 28,000 houses under construction right now, more to come through the Housing Australia Future Fund, and we announced another supply side program yesterday in conjunction with this, but we also want to help first home owners get a fair crack and I think that's been part of the housing challenge in our country and part of I think the decade of neglect that we saw under the former government.
VINALES: What's your response to that criticism though? I mean, how do you justify spending the measures that we've seen when they've been so widely criticised? These aren't just a number of economists, this is the former governor of the RBA, multiple people saying that this will only fuel the demand.
GALLAGHER: Well, again, our 5 per cent deposit guarantee is one of a number of programs that we have going into investing in housing. So, our plans are more homes and lower, cheaper deposits and the Opposition's are less homes and higher prices. That's the offer between the two policies that were announced yesterday. That is the contrast. You cannot see our 5 per cent guarantee in isolation of the other huge investment that we've been putting into housing for the last three years. As I said, 28,000 homes under construction, up to 55,000 that we want to do through the Housing Australia Future Fund. Another 100,000 that we announced yesterday in terms of building for first home buyers. So, we are dealing with the supply side as well as ensuring that first time buyers get a fair crack. Now what Peter Dutton wants to do is abolish the Housing Australia Future Fund, young people ransack their super and have this interest off their mortgage payments or tax deductibility off their mortgage payments. And it's very clear without a supply side answer that will significantly increase house prices. So, we are being responsible. We've been very careful on this. We've been looking at every which way we can deal with the housing challenge and that's what our policy offering offers and is in sharp contrast to what Mr Dutton is offering.
VINALES: There's an argument that voters don't care about macroeconomic consequences here, that they just want to get into the housing market, but shouldn't you care about some of the bigger issues here around the structural reform that is required?
GALLAGHER: Well, we are doing all that we can do in housing to make sure that those that want to get into home ownership can get into home ownership, but at the same time, we are making sure we've got a supply of social and affordable housing. We are making sure that First Nations communities get the housing that they need built. We are making sure that women leaving domestic violence situations have the housing that they need. You can't, again, just look at housing and the challenges the housing market faces in isolation or with one program. We've come at this every which way. Clare O'Neil's been working on it, absolutely with a fine eye to detail about what we need to do now, right now to help people and that's where we've landed. We helped them with lower deposits because we know that's a barrier, but we also put a huge effort into driving supply in this country and we're doing that including with our support for the trades that are needed for housing. But again, it's a big difference between what we are saying and what the Opposition are saying that they will do in housing, which will be fewer houses and higher prices.
VINALES: Katy Gallagher, would you like to see house prices rise in Australia?
GALLAGHER: What we're focused on is making sure there's enough supply. That's the Australian Government's job and that has been a job that was failed under Peter Dutton when he was a minister sitting around the cabinet table. Our job, when we look at all the different things that influence house prices around the country, how the economy's working, a whole range of other things -- the area that the Commonwealth government can play a role in, and where it was completely vacated under the former government, was in the supply of housing. And that's why we've been so focused on it and continue to be focused on supply, but also looking at ways that we can help people take up that dream of home ownership, which is so important and again, was an area that I think in terms of our policy suite was a bit of a missing piece, which we covered off yesterday.
VINALES: What do you say to the criticism that the 5 per cent deposit policy will just transfer risk to Australian taxpayers?
GALLAGHER: Well, it doesn't do that at all. This is an existing program, so we've had it in place for some time. This is obviously expanding it to all first time buyers if they choose to use it. And we've had tens of thousands, I think over a hundred thousand, use that program, the guarantee system. And we have had I think a total of three defaults. So, it's a very tried and tested program and the costings that will be reflected in the Budget or in our costings when we release them, reflects that very low default rate because it doesn't change anything about what you can borrow. It doesn't mean you borrow more. What it means is that you can get into housing with a lower deposit and the Commonwealth will back you on that. But we've seen it a very successful program, which is why we've decided that this is the way to open it up for more first time buyers.
VINALES: Okay. The Greens are obviously pushing for reforms to tax concessions for property investors, namely negative gearing, the capital gains tax discount, saying it will be front and centre in the next parliament. Is reforming this area something you would consider entertaining in the case of a Labor minority government?
GALLAGHER: Well, that is not our plan. We have no plans to do that. And as the Prime Minister has said every time I've stood next to him on this campaign, we are campaigning for a majority Labor government. If people want to see strengthening your Medicare, more housing, those income tax cuts, then you've got to vote Labor. And this idea that the Greens are out there pointing the finger and telling the world what their demands are, just shows how arrogant they are. The election is between Anthony Albanese and Peter Dutton and we're going to be very clear with people about that. If you want to Labor government to see us put forward our policies, then you've got to vote Labor.
VINALES: Katy Gallagher, just before we let you go, the ABC has revealed Russia's ambassador to Australia, Aleksey Pavlovsky, returned to Moscow over a week ago without details over when his replacement will be approved by the Department of Foreign Affairs and Trade Minister. When was the Government made aware of his return and when can we expect a new appointment?
GALLAGHER: Look, Pablo, I don't have anything that I can assist you with in that regard. I mean, those matters would be, quite rightly, matters for the Minister for Foreign Affairs, so I can't assist you with that.
VINALES: Okay. Katy Gallagher, thank you so much for your time. We appreciate it.
GALLAGHER: Thanks for having me on.
ENDS
