Topics: House prices, Redbridge polls, U.S. claims to disarm Hamas in Gaza
E&OE.......................
PETE STEFANOVIC: Joining us is the Liberal Senator Dave Sharma. A bit to talk about today, Dave, but we'll start off with our top story, which is house prices. So we're seeing this trend now month on month on month on month, and it's true, it's a combination of factors. It can't be just one. I'm talking about the tax changes here, but it would be a significant part of it because investors would be spooked. And I guess this is the whole point of it, but it's still quite alarming, the drop-off now, because as of today This is biggest price fall throughout the entirety of the Albanese government.
DAVE SHARMA: I think it's concerning because the housing market plays an important role in Australia's economy. There's a whole lot of people whose livelihoods depend upon not just real estate agents, you know, any number of people who are part of that transaction chain. I think what we've seen from this government is we've seen a sort of triple whammy of failures. We've seen rents going up significantly in places like Sydney, Melbourne, so homes are becoming less affordable. We're seeing fewer homes being built. And now we've seen a complete loss of confidence in the market, which will have an impact on consumer spending and consumer level of financial comfort, their willingness to change jobs, all these sorts of things that help build a dynamic economy. And it's because, I mean, Co-totality finds it's largely because of the changes to negative gearing capital gains tax and the Reserve's recent interest rate rises because the Albanese government has not got on top of it.
PETE STEAFNOVIC: And all these factors were brought up at the time too. And I was talking to Dan Mulino a little bit earlier and their view is, look, think medium term. Not so much short-term. There is a correction taking place at the moment, but it'll be okay in the long run. But given these changes are permanent, will it be okay, I wonder? I mean, of course it will be in the long run, but I mean, it's going to be a challenging period.
DAVE SHARMA: The risk is you get into a spiral of loss of confidence which further hurts the market, which breeds a further loss of confidence. And you've got to remember, there's— the government's got this far too generous 5% deposit scheme which has been opened up to everyone now, know, non-citizens, people on high incomes. But a lot of the people who've taken have only put 5% into their home. If their homes have gone back by 5% or more, they're in negative equity territory.
PETE STEFANOVIC: Yeah, I mean, Matt Thistlethwaite on the show a short time ago downplayed that, said it's a very small number who are actually in negative equity. I find that hard to believe, but that's the argument that they're putting up.
DAVE SHARMA: I find that hard to believe too. I mean, we'll need to wait for the banks to report on levels of like mortgage stress.
PETE STEFANOVIC: Were you seeing that though, right? Was it NAB or Westpac last week that said, yeah, applications for home loans have dropped off 15%.
DAVE SHARMA: Applications have fallen, then the level of stress in terms of meeting repayments. This can have a catalytic effect in a very bad way throughout the economy, and it's because I don't think Labor thought through just how dramatic and damaging these changes were to be towards confidence in the overall Australian economy. And it's not just housing. I mean, you're seeing businesses not wanting to make investment decisions because of the tax outlook that's uncertain. You're seeing new businesses saying, we're to build our business offshore now in New Zealand or Singapore. This is a budget that has damaged us across our whole entire economy.
PETE STEFANOVIC: Looking at these numbers today, the Redbridge polling, it's got One Nation back in front now, but you guys have had a good month. You're up 4%, Angus Taylor up 4% as well. What do you put that down to? I mean, could housing be a factor there, concerns around housing?
DAVE SHARMA: Look, I think firstly you don't ever want to read too much into one poll. Of course, every politician will tell you the only poll that matters is on election day. But I think, look, we need to keep making the case about why Labor's economic management is hurting the economy and how we will get the economy back on track again. And we're doing that day in, day out. I know Angus Taylor is and Jane Hume and the leadership team. And I think, to the extent you want to take anything from the polls, it's, you know, when we focus on the main issue that's impacting Australians, which is the cost of living, which is loss of economic confidence, I think we can convince Australians that we have a better plan. We have a better track record as economic managers., can improve the economic fortunes of Australia. continues to damage them.
PETE STEFANOVIC: Okay, let's just close out on this claim, and we were breaking this just as the first edition was ending the week last week, where there was that big claim from the US president that Hamas is— there's this complete disarmament of Hamas in Gaza. I there were questions around who's for this, whether Israel was or whether Hamas actually was in the end, but given you're here, do you have a view on that?
DAVE SHARMA: Well, look, certainly we should welcome this. I think everyone knows that there cannot be an enduring settlement between Israel and the people whilst Hamas remains armed and committed to Israel's destruction. And this is always part of the peace framework. You know, Labor dropped this demand for Hamas to disarm in their national platform last week. I have no idea why, but if you're genuinely interested in peace, you want to support Hamas disarming. Now, clearly they're not going to do this, you know, voluntarily or easily, but if they've been put under enough economic and political and military pressure, if this is true and this can be implemented, I think it means a brighter for hope the Palestinian people but also for the Israeli people.
PETE STEFANOVIC: Dave Sharma, good to see you, appreciate it.
DAVE SHARMA: Thanks so much.
[ENDS]