Shadow Housing Minister Andrew Bragg has exposed Labor's multi-million-dollar spending on its 5 per cent deposit scheme advertising, revealing nearly $7 million has been spent on campaigns targeting first home buyers. The revelation came during a fiery Senate hearing on Thursday, where Mr Bragg pressed the Treasury on what he called a waste of taxpayer funds.
Senate Hearing Exchange
During the hearing, Mr Bragg said, “Everywhere I go I see government advertising. It’s like I see more 5 per cent deposit marketing than I do for KFC these days.” He then asked Treasury officials, “How much have you wasted on these 5 per cent deposit advertising?”
Finance Minister Katy Gallagher quickly responded, “Well, there is a purpose behind public information campaigns Senator Bragg.” Mr Bragg retorted, “Here we go,” prompting Ms Gallagher to assert, “Well, you keep saying things that I have to respond to. I can’t just let it go when you say, ‘wasting money’.”
Angela Mason, assistant secretary at Treasury's Communications Branch, confirmed the total spending on the government’s 5 per cent deposit and Help to Buy schemes totalled close to $7 million. “So total campaign expenditure for that at 30 April is $6,993,751,” Ms Mason said.
Criticism of the Scheme
Speaking to Sky News on Thursday evening, Mr Bragg criticised the 5 per cent deposit scheme, saying “by definition, these are risky loans.” He argued that the government had collapsed housing supply by 30,000 houses a year while deploying the scheme without means testing or place caps, leading to higher entry-level prices.
“And we also found out today that they've spent $6 million of taxpayer funds to advertise it to Australians. So, look, they're good at the politics and the spin, but they're not so good at governing,” he said.
The scheme allows eligible buyers to purchase a property with a deposit as low as five per cent, with the Commonwealth guaranteeing part of the loan. If a borrower defaults, taxpayers can ultimately be exposed to losses through the guarantee arrangement.
