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Labor’s High Immigration is a Crisis in the Making

On Thursday, I asked simple straightforward questions of the Government regarding Labor’s record high immigration levels, which have contributed to a housing shortage crisis, leading to a humanitarian catastrophe. I had hoped for Minister Watt to acknowledge that the Government recognizes the disastrous impact its policies have had on everyday Australians.

The Minister’s four minutes of waffle and deflection only underscores that the Albanese Government has no intention of reducing immigration.

Transcript

Senator ROBERTS: My question is to the Minister representing the Minister for Immigration, Citizenship and Multicultural Affairs, Senator Watt. Australia is experiencing the largest immigration intake on record. Australian Bureau of Statistics figures show that 518,000 net overseas migrants arrived last year and 55,375 migrants arrived in January this year alone—55,375 migrants in one month. That’s 40 per cent higher than the previous January record way back in 2009. Minister, how many migrants is this government going to let in this year?

Senator WATT (Queensland—Minister for Agriculture, Fisheries and Forestry and Minister for Emergency Management): Thank you, Senator Roberts. The first thing I’d like to say is that the Albanese government is very proud of the multicultural nature of the Australian population. I heard you earlier today in another debate, Senator Roberts, acknowledge that your own family has a fairly recent history of migration, and I think we should all recognise the very valuable contribution that migrants have played, and continue to play, in Australia. Having said that, we do acknowledge that there has been an increase in migration to Australia, particularly as a result of the pause to migration that occurred through the pandemic. The figures that have come out today are entirely expected and are consistent with the forecasts for net overseas migration that we set out in the mid-year budget review at the end of last year.

Migration levels are expected to have peaked in 2022-23 and are forecast to drop in half by next year. Our government is doing the hard work—not done under the former government—to bring migration back to sustainable levels, after all comparable countries also experienced a surge post the pandemic. The changes that we made late last year are having a significant and immediate impact. For example, student visa grants are down more than 35 per cent on last year’s level, and I know for a fact that Minister O’Neil, Minister Clare and Minister O’Connor have been working very hard on trying to tackle some of the rorts that were left behind in the international student visa system. That is having results in terms of bringing those student visa grants down by more than 35 per cent on last year’s level.

The data that has been released today doesn’t take into account the very substantial actions that our government has taken to bring down net overseas migration, and that’s because most of those actions were implemented mid to late last year. But we recognise that this as an issue for Australians, and we’re taking action to deal with it.

The PRESIDENT: Senator Roberts, first supplementary?

Senator ROBERTS: With people in Queensland, including working families with real jobs, now living in tents, in caravans, in parks, in cars and under bridges, there is a human catastrophe unfolding in this country in our state. Will you suspend further immigration until everyone who is here now has a bed to sleep in with a roof over their head?

Senator WATT: Thanks, Senator Roberts. I absolutely acknowledge that our country has a housing shortage. We have acknowledged that since the day that we were elected and had to deal with the massive housing shortage and housing affordability crisis that was left behind by the former government. That is exactly why we have been presenting a range of options to this parliament to deal with housing shortages, including the creation of the $10 billion Housing Australia Future Fund. Senator Roberts, for someone who says that we should have more housing to deal with this, I’m surprised that you and Senator Hanson voted against the Housing Australia Future Fund. In fact, I was reminded that Senator Hanson, in the last 24 hours or so, has described the Housing Australia Future Fund as ‘useless’. You continue to argue that we need more housing, just as the coalition argues for more housing, but when you have an opportunity to do something about it, what do you do? You vote no. We know that you’re intending to vote no to the help to buy legislation as well, so be consistent. If you want more housing, vote for it. (Time expired)

The PRESIDENT: Senator Roberts, a second supplementary?

Senator ROBERTS: Minister, is immigration too high?

Senator WATT: Thanks, Senator Roberts. The government is already taking action to try to deal with the increase in migration that we experienced after the pandemic and just as all other comparable nations experienced after the pandemic. That’s why we’ve made changes to student visa grants. They are down by more than 35 per cent on last year’s level—the settings that were left behind by the former government. That’s why we’ve taken a range of other actions to fix the utterly broken migration system that was left behind by Mr Dutton, the former home affairs minister. Yet again we’re fixing up the former government’s mess while at the same time we’re trying to build homes, even though we are obstructed every step of the way by the coalition, One Nation and, all too often, the Greens party.

Senator Rennick: They want home ownership.

Senator WATT: I heard an interjection that people don’t want public housing, they want home ownership. Firstly, they do want public housing; and, secondly, home ownership is exactly what we’re trying to do through our help to buy scheme. It’s in the name—help to buy.

March 21, 2024/1 Comment/by Senator Malcolm Roberts

Foreign-Owned Homes Vacant as Growing Numbers of Australians Are Made Homeless!

National, Senate Estimates

Jim Chalmers has said the government has no idea how many homes bought by overseas investors are sitting vacant in Australia.

I asked in senate estimates how the government plans to fine foreign owners of empty houses if they can’t even find that out. It’s just a thought bubble so Labor can try to look good without actually doing anything.

Just ban foreign ownership altogether!

Transcript

Senator ROBERTS: Thank you for appearing today. My questions are on Treasury’s plans to find foreign investors who leave properties that they own vacant. How you going to enforce that? Even Treasurer Jim Chalmers said we have no idea how many are being left vacant. Are you going to send people around doorknocking to see if there are any empty homes? It sounds like headline grabbing to me.

Ms R Kelley: As we’ve mentioned before, the Australian Taxation Office does have a compliance function that specifically deals with the vacancy issue. I have a colleague here from the ATO who can assist in answering the question, but they have a very well-established compliance program. They do look at the vacancy rate and they do enforce that when houses are left vacant for more than 183 days per year; they do actually follow up. I’m sure we can get some numbers, if you like, in terms of recent action by the ATO, but part of the government’s announcements around the increase in fees was also that increased resources were being given to the ATO to assist in strengthening that compliance approach.

Senator ROBERTS: Thank you, Ms Kelley.

Mr Thompson : That’s correct. I thought I might briefly explain how we enforce the existing vacancy fee rules. Obviously, these are amendments to the rates, but they don’t change our enforcement approach. People who are in scope—in the population in 2022-23 that was about 12,500—that we track are required to lodge a vacancy fee return every year. Some of those foreign investors declare to us that the property is vacant, in which case we levy them the vacancy fee. We also conduct compliance activities on the remainder of the population. For those foreign investors who don’t lodge a return, we deem a vacancy fee on them and they need to contact us if they think that we have deemed that fee incorrectly.

Senator ROBERTS: How accurate is your register of foreign owners? Have you done any testing on it to make sure all the foreign owners are in fact registering?

Mr Thompson : Yes. As we explained in some questions on notice following the last estimates, we get the full data set for the real property transaction registry. For example, in 2022-23 the number was around 2.4 million individual entries. We work through a range of data-matching techniques to get that down to a potential compliance pool in the thousands and then we publish our compliance numbers, and they’re generally in the hundreds. In that sense, we’re very confident about the in-scope population under the Foreign Acquisitions and Takeovers Act rule.

I would make the point that there is sometime debate about the exact numbers, and I think that goes to the different definitions that different regimes use. For example, we’re aware that the rule of the Foreign Acquisitions and Takeovers Act is slightly different from state and territory land tax acts. There’s also a NAB survey that is run every so often, and that asks the question about overseas buyers, as opposed to foreigners. When people talk about the numbers—I’d say we’re very confident of the numbers under the Foreign Acquisitions and Takeovers Act definition, but that’s not to say that, if people are using different definitions, you might not come up with different numbers.

Senator ROBERTS: That’s a question I’ll ask later, in another session. When it made its release, the government said it expects to collect $500 million a year in these extra changes—$170,000 per person. If the charge is $170,000, that’s less than 3,000 homes, and many of those 3,000 will probably still stay vacant because foreign buyers are rich and can probably afford to just pay the charge. Has Treasury conducted any modelling on how many of those 3,000 they expect to become occupied because of this thought bubble? You just mentioned 12,500 vacancies.

Ms R Kelley: I think we need to clarify that the predicted revenue is based on the total application fees as well as the vacancy fees.

Senator ROBERTS: How many houses do you expect to be trapped in this scheme?

Ms R Kelley : It depends. Every year there are different numbers. In the last financial year, 3,542 houses were purchased by foreign investors, so they would definitely be captured. The people who are purchasing are captured. The application fees have been tripled. They range with the value of the property, and the application fee increases with the increase in the property value. Then you have the numbers that Mr Thompson was talking about in terms of the number of houses that are already purchased and registered and that the vacancy fees apply to. The calculation around the revenue are based on those sorts of numbers as well. It’s both factors.

Senator ROBERTS: Minister, it makes it really simple, doesn’t it? Why not ban all foreign ownership of housing? That would solve the housing crisis.

Senator Gallagher: I am not sure it would when we look at the numbers involved in the evidence that’s just been given, and that is not the government’s position.

Senator ROBERTS: Why isn’t it the government position? There are Australians in caravans, tents and cars.

Senator Gallagher: Again, there are a number of reasons why there is pressure in the housing market at the moment, whether you be renting, homeless or seeking to buy your first home. Not all of that can be attributed, as I think you would like to argue, to foreign ownership.

Senator ROBERTS: I am not saying ‘all,’ but I am saying massive immigration is driving up housing prices.

Senator Gallagher: That, again, is a different issue to the subject of foreign ownership. You’ve been given the numbers today.

Senator ROBERTS: We’re concerned about Australians residents and citizens in tents, caravans, cars, under bridges—

Senator Gallagher: That is why we have all the effort on the housing side to generate supply.

Senator ROBERTS: Thank you, Chair.

February 22, 2024/8 Comments/by Senator Malcolm Roberts

How to Fix the Housing Crisis

Speeches

The housing unaffordability crisis is one of the greatest issues facing Australia. Australians want to have their hard work and savings rewarded. They want a place to call their own and a place where they can stay to raise a family.

Mortgages are skyrocketing and two thirds of young Australians believe they will never own their own home. Rents are also rising on the back of a record low national vacancy rate of 1%. Experts consider a 3% vacancy rate to be tight — a national average of 1% is an absolute crisis.

Right now, many Australians simply cannot afford a roof over their head.

Supply and demand controls the housing market. Yet decades of successive governments have mismanaged both sides of the equation.

One Nation would properly manage our economy and deliver cheaper houses and cheaper rent. How? First, by stemming the flow of overseas arrivals which is driving up unsustainable demand. Over the last year, Australia gained an additional 2.3 million visa holders. We cannot sustain this level of overseas arrivals. Powerful lobby groups reliant on high immigration have been able to label anyone talking about this problem as racist.

Secondly, many Australians can’t afford housing in Australia banning foreign ownership is the only answer. It would increase housing supply and stop pumping up the profits for the Big Banks. As the Reserve Bank raises interest rates, the big banks pass that on at up to 7%, yet the banks borrowed long term funds from the RBA at just 0.1%. They’re pocketing the huge difference leading to record-breaking profits.

On the supply side, government and its red and green tape must get out of the way and let our tradies build homes. Homes for Australians to stem the tide of tent cities and misery that decades of indifferent governments have caused.

Affordable houses, lower affordable rents and a flourishing economy is all possible under One Nation.

Transcript

I thank Senator Pocock for his matter of urgency and for validating the concept of net immigration that we’ve been pushing for quite some time. Mortgages are skyrocketing, rents keep increasing and two-thirds of young Australians believe they will never own a home, and it’s easy to understand why.

The housing unaffordability crisis is one of the greatest issues facing Australia. In Brisbane, the median house price is 10 times the median income. Experts consider a three per cent rental vacancy rate to be tight. Rents are rising on the back of a record low national rate of one per cent. As in all real markets, there are two things, and two things only, that affect house prices: supply and demand. Successive governments have destroyed both sides of the equation.

This is how One Nation would deliver cheaper houses and cheaper rent. In the short term, we would stop pouring fuel on the fire. Excluding tourists and short-stay visitors, there are 2.3 million visaholders in the country likely to need housing. In addition, there are roughly 400,000 tourists and other visaholders in the country. In the middle of our rental shortage, this high demand is motivating owners to convert housing to full-time Airbnbs. Two point seven million visaholders, more than 10 per cent of Australia’s population, are in the country right now fighting Australians for a roof over their head. The country cannot sustain this level of overseas arrivals. That number must be cut to help housing availability and affordability.

The biggest winners from high house prices are the banks. As the Reserve Bank raises interest rates, the big banks pass that on at up to seven per cent. Yet the banks borrowed long-term funds from the RBA, the Reserve Bank of Australia, at just 0.1 per cent. They’re pocketing the huge differences, leading to record-breaking profits. One Nation would never repeat the mistakes of the COVID period, where the Reserve Bank was allowed to create $500 billion out of thin air.

That led to the inflation that the Reserve Bank is now trying to fight, and the tool it uses is to send mortgage holders broke.

Finally, on the demand side, we need to ban foreign ownership of Australian assets. A single real estate agent in Sydney sold $135 million dollars in property to Chinese buyers in just six months. Australians can’t own a house in China, so why should we let foreign citizens buy property here? And on the supply side, the government needs to get out of the way with its restrictive building codes, so called green land restrictions and a spider web of employment law.

A home is a castle. Decades of indifferent governments from both sides of politics have ruined the Australian housing dream for many Australians. Only One Nation has the guts to make that dream a reality for all Australians.

Affordable houses and rents and a flourishing economy are all possible under One Nation. We just need to start looking after Australians first

December 18, 2023/11 Comments/by Senator Malcolm Roberts

Labor’s Tent Cities

Speeches

I spoke in parliament about the homelessness crisis in Australia and called out those responsible.

In Labor’s urban heartland, everyday Australians are sleeping in tents. These ‘tent cities’ are forming in public parks, showgrounds and under bridges. Australian citizens are being pushed aside to make room for the 2.3 million visa holders this government has let in during its term.

What the heck is this government doing? No stunts can cover up this failure. Imagine what kind of Christmas these Australians will have? The government is sending billions of dollars in foreign aid and contributions to organisations like the WHO and the United Nations, while letting its own people become homeless.

Albanese’s government is the Grinch that is stealing the Australian way of life.

Transcript

As we go about the business of the Senate today in the Labor Party’s normal chaotic, despotic manner, out there in Labor’s heartland, everyday Australians are sleeping in tents in public parks and in tents under bridges.

Australian citizens are being pushed aside to make room for the 2.3 million visa holders this government has let in during its term. That’s 2.3 million people being brought into a country that’s only building 120,000 new homes a year. That’s 2.3 million arrivals into a housing market that was already short 100,000 homes needed to put a roof over the heads of all those who were here when Labor took office—homeless Australians this government has turned its back on.

How must these people feel, watching this one-term Prime Minister jetting around the world in style, hobnobbing with predatory billionaires at elitist events in lovely locations, dining out on the best food and sleeping in the best hotels. Perhaps the next trip this failure of a prime minister should be taking is to the riverbank at West End, New Farm, South Bank, North Quay or Musgrave Park, all in Brisbane, or to the showgrounds in Gladstone or parks in Bundaberg.

The footage of these Depression-era tent camps is running on the ABC as we speak. I suggest the government watch it and ask themselves what the heck they are doing.

Tent cities are appearing right across Labor’s urban heartland—everyday Australians unable to keep a roof over their heads because there is no roof for them.

Thanks to Labor Prime Minister Anthony Albanese and this Labor government, there’s no place in Australia for Australians. Every tent in these tent cities has a name stamped on it—the names of Prime Minister Albanese, of Treasurer Chalmers and of Immigration Minister Giles. Your heartland is hurting, and no stunts on a bill the Senate had mostly passed already will cover up your failures.

Bring on the next election, because you lot are done.

December 8, 2023/4 Comments/by Senator Malcolm Roberts

How to fix a housing crisis

Foreign Ownership, National, Queensland

Mortgages are skyrocketing, rents keep increasing, two thirds of young Australians believe they will never own a home and it’s hard to blame them.

The housing unaffordability crisis is the greatest issue facing Australia. Australians want to have their hard work and savings rewarded. They want a place to call their own and a place they can stay to raise a family.

The median house price in Brisbane is 10 times the median income.[1] In Brisbane it would take the average income 13 years just to save a deposit.

Rents are also rising on the back of a record low national vacancy rate of 1%.[2] Experts consider a 3% vacancy rate to be tight, a national average of 1% is an absolute crisis.

Right now, many Australians simply cannot afford a roof over their head.

Like any market there are two things and two things only that affect housing prices: supply and demand. Decades of successive governments have mismanaged both sides of the equation.

This is how One Nation would properly manage our economy and deliver cheaper houses and cheaper rent:

Cut overseas arrivals, ban foreign ownership, increase supply and stop pumping up profits for the Big Banks.

Cut the flood of overseas arrivals

In the short term, we need to stop pouring fuel on the fire. A huge amount of overseas arrivals are driving unsustainable demand.

Excluding tourists and short stay visitors, there are currently 2.3 million visa holders in the country likely to need housing.[3]

These working visa holders, students and others are putting enormous strain on the rental market, fighting Australians for a roof over their head and driving up rent prices.

The arrivals that can afford it are also buying houses, pushing up prices even higher.

The Albanese Labor government issued a record 670,000 student visas in one year when we only have 100,000 dedicated student accommodation beds.

In addition to these 2.3 million visa holders likely to need housing, there are roughly 400,000 tourist and other visa holders in the country.

While tourism is good for Australia, in the middle of our rental shortage this high demand is motivating owners to take their properties out of the rental pool and convert them to lucrative, full-time AirBnBs.

That means less rental supply for people needing a place to live and higher rents.

2.7 million visa holders, more than 10% of Australia’s population, are in the country right now fighting Australians for a roof over their head.

The country cannot sustain this level of overseas arrivals. It must be cut to take immediate pressure off housing availability and affordability.

Why haven’t we cut arrivals already?

Powerful lobby groups who rely on high immigration have been able to falsely label anyone who talks about this problem as “racist”.

Talking about reasonable levels of immigration is about securing a prosperous future for all Australians, including those who come to the country. Ruining our economy is a bad outcome for immigrants as well.

As the problem gets even worse, even mainstream media is now being forced to acknowledge the huge negative effects Australia is seeing from an unsustainable amount of arrivals.

Homelessness is a scourge affecting all our cities, but it's particularly severe in Queensland. Post-COVID migration to the Sunshine State has exacerbated a housing shortage, with some cities recording extraordinary rent inflation. #abc730 pic.twitter.com/yZUxW76iB0
— ABC News (@abcnews) December 6, 2023

The biggest winners from high house prices and big immigration are the big banks and multinational corporations relying on cheap labour.

Mortgages are so profitable for banks that they have become over-reliant on housing prices.

The ratio of borrowing for mortgages versus borrowing for business has skyrocketed to more than 200%, up from less than 40% in 1990.[3A]

That means the Big Banks are less diversified and will lose more money if housing becomes affordable.

As the Reserve Bank raises interest rates, the big banks pass that on at up to 7%, yet the banks borrowed long term funds from the RBA at just 0.1%.

They’re pocketing the huge difference leading to record-breaking profits.

There is billions of dollars at stake for the banks and other big businesses if housing became more affordable. The questions have to be asked whether government is putting the profits of greedy banks and multinational corporations ahead of Australians having affordable housing.

One Nation would never repeat the mistakes of the COVID period, where the Reserve Bank was allowed to create $500 billion out of thin air.[4]

That led to the inflation the Reserve Bank is now trying to fight and the tool it uses to do that is sending mortgage holders broke.

This only pumps up the big banks profits.

Ban Foreign Ownership

Finally, on the demand side solutions, we need to ban foreign ownership of Australian assets.

The government has no idea exactly how bad foreign purchases are.[5] A single real estate agent in Sydney sold $135 million in property to Chinese buyers in just six months.[6]

Australians can’t own a house in China, so why should we let foreign citizens buy property here?

Australian property is also a hotbed for suspected money laundering, with much of this happening in foreign connected purchases.[7]

We need to ban foreign ownership of Australian homes to decrease demand and give Australians a shot at owning their own home.

Let tradies build homes

On the supply side, government needs to get out of the way with their restrictive building codes, green land restrictions and a spider web of employment law.

Our tradies know how to build homes. Government just needs to get out of the way and let them build.

While increasing supply is an important part, it is important to note that supply can only be increased so much in the face of overwhelming demand, fuelled by overseas arrivals and foreign purchasers.

Australia has typically built homes at nearly the fastest rate in the world, fourth out of all OECD countries.[8]

Supply chain issues, high interest rates and rising construction insolvencies mean its very unlikely we will be able to easily build even more supply than the high amount we already do.[9]

Looking at how Australia punches above its weight in building houses and increasing supply already, it’s clear the biggest issue we have to fix is the demand side currently driven by overseas arrivals.[10]