Treasurer Scott Morrison and Finance Minister Mathias Cormann have gone on a Sunday morning charm offensive to sell the message that the government will tackle housing affordability as a cornerstone measure of Tuesday's federal budget.
Mr Morrison said policies aimed at first-home buyers looking to buy and retirees looking to downsize would both be included in the the budget.
"The approach we will be taking in the budget is comprehensive," Mr Morrison told Nine's Weekend Today program. "It will work with states and territories. It will address everything from the needs of those who don't even have a roof over their head to those who are trying to buy one to put over their head, and it will even deal with those who later in life are looking to change their housing arrangements."
Just minutes earlier Mr Cormann had appeared on Sky News and declared that housing affordability was one of the main areas of focus of the federal budget. "It will be a very practical budget," Mr Cormann said. "It will focus on housing affordability. It will focus on energy security. It will focus on a whole range of issues that people across Australia expect us to focus on."
An ANU survey has revealed that one-fifth of Australians are struggling to meet mortgage or rent payments, with 2 per cent having fallen behind. Nearly a quarter said they would be in quite a bit or a lot of difficulty if interest rates jump by 2 percentage points, while nearly 90 per cent are concerned that future generations won't be able to afford to buy a house.
"We are very aware of the pain they have been feeling," Mr Morrison said.
Nine's Laurie Oakes put to Mr Morrison that the government had baulked at addressing two of the major economic drivers of rising housing prices in Australia - negative gearing and capital gains tax concessions. Both tax concessions have been criticised for squeezing young Australians and first-home buyers out of the market.
"I don't agree with the cynics who say the Commonwealth government can't make a difference in this area," Mr Morrison said. "I think we can. I also don't agree with the cynical opportunists who say all you have to do is change one tax and everybody can buy a house wherever they want. I don't think that's the right approach."
First-home buyers
Last week Mr Morrison signalled that first home buyers would be likely to receive assistance from the federal government to buy a house. On Sunday, he confirmed that budget measures would also extend to assistance for renters and measures to help the homeless.
"If you are trying to save to buy a home, if you are on a housing waiting list, if you are homeless, if you are paying 50 per cent or more of your income on rent, housing is a big issue for you," Mr Morrison said. "That means it's a big issue for me and the prime minister. You need a comprehensive plan. You can't solve housing affordability, but you can do things which reduce the pressure. I think Australians expect governments to do that. I don't think they expect us to shirk these issues because they are too politically hard."
Amid speculation the budget would provide further financial assistance for first home buyers, the government has faced criticism that such measures merely drive house prices even higher.
"There are elements of public policy that will have an impact on these sorts of dynamics and you will find out in the budget on Tuesday night the policy work that the government has done on how we believe we can best put downward pressure on housing affordability," Mr Cormann said.
When asked if the budget would cause any Australians pain, Mr Morrison replied: "You've got to pay for what you spend."
