The Rudd Government has failed to guarantee a reduction in the upfront purchase price of new homes but has stated that it is possible the Housing Affordability Scheme will result in existing homeowners losing equity in their own homes, Senator Cory Bernardi said today.
“The Rudd Government has misled the public on its Housing Affordability Scheme,” said Senator Bernardi.
“When I questioned Dr Jeff Harmer, Secretary Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) on whether the scheme would influence a drop in existing home values, he advised that ‘it was theoretically possible’.”
Under questioning by Senator Bernardi about a reduction in upfront home prices Ms Peta Winzar from FaHCSIA stated ‘It may well be that the saving is not delivered as an upfront reduction, yeah, that's quite true.’
“The common sense test suggests the price of housing relates to the actual cost of purchasing a home, a concept completely lost to the Rudd Labor Government and their representative in the Senate Estimates Committee, Senator McLucas,” said Senator Bernardi.
“Senator McLucas immediately leapt into damage control by calling into question what ‘price’ actually means, seeking to redefine it as the Rudd Government has sought to redefine any number of their election promises.
“When I enquired with Senator Lucas whether the aim of the program was to reduce the upfront purchase costs of new homes, she stated ‘No that’s not what I said’.
“The department and Senator McLucas have confirmed that existing homeowners could actually be worse off by a reduction in their valuable equity whilst new home owners may not actually see any reduction in the upfront purchase price of their properties.
“Once again we are provided with an example of the Rudd Government’s spin misleading the Australian’s community. It’s a case of all spin, no substance.”
