Transcript | ABC Radio Adelaide Breakfast | 14 April 2025

Transcript – ABC Radio Adelaide Breakfast

14 April 2025

E&OE

SONYA FELDHOFF:

First up, James Paterson is Shadow Minister for Home Affairs and a Liberal Senator. Good morning to you, James Paterson.

JAMES PATERSON:

Thank you for having me.

SONYA FELDHOFF:

Now the Liberals have made some pretty big promises to first home buyers. Can you first up tell us who is eligible for tax deductible mortgages?

JAMES PATERSON:

So they must be a first-time buyer, and they must be buying a new home. If they're an individual, they must earn less than $175,000. And if they're a couple or two people buying together, they must earn less than $250,000.

SONYA FELDHOFF:

Now, that helps those who are in a position and already have a deposit, but do you accept that that isn't going to do much for those who don't have a deposit at the moment?

JAMES PATERSON:

Yes, and that's why we've also got a policy to allow first-time buyers to access up to $50,000 from their own superannuation, if they choose, to help build them towards that deposit. And it's also why in 2020, the Coalition introduced the Home Guarantee Scheme, which allows people to buy a home with just a 5% deposit and not pay lenders' insurance, the mortgage insurance. Now that's the only successful housing policy that the Labor Party has that they now try to claim as their own, but it was actually introduced by the last government.

JULES SCHILLER:

James Paterson, do you agree with economists, and this has also been levelled at the Labor Party to be fair, that these policies will not help young home buyers get into the market right now, in fact, for the next couple of years, and could possibly drive up inflation and house prices in the short term?

JAMES PATERSON:

No, I don't agree with that because these are not policies that are being pursued in isolation. They're just one part of a comprehensive package. So we are also taking the pressure off demand by banning foreign investors from buying for the next two years and by reducing migration, which we think will free up 100,000 homes over the next few years. And we're increasing supply through a $5 billion infrastructure fund, which will fund the things like roads and electricity and water and sewage that are holding back housing developments, and that will allow 500,000 dwellings to come onto the market in the next few years as well. So taken together, it's a comprehensive package that'll boost supply, restrict demand and back first home buyers and give them an edge to get into the market.

TROY SINCOCK:

James Paterson, can you explain to us when people will be able to access the housing offset cash?

JAMES PATERSON:

As soon as it's legislated, they'll be eligible. So they have to be in the market for a new home. It has to be a brand new home, but once it's legislated, once they buy it, they'll be able to access that deduction for five years. We think that'll save people about $12,000 a year on an average mortgage size. And so over the life of a loan, that could be up to $60,000 that they could save.

SONYA FELDHOFF:

So just in terms of the logistics, do they have to pay the full mortgage and then just get it refunded at tax time, or how does that work?

JAMES PATERSON:

That's right. So it works like any other deduction in the tax system, which is that when you file your tax return, you get a significant return and that allows you to have more cash freed up to pay that mortgage.

SONYA FELDHOFF:

But you'd have to have the money first up?

JAMES PATERSON:

That's right. You certainly have to be able to service the mortgage. And that's the same for all home buyers. You must be able to service the mortgage, but this will make it a lot easier for you to service that mortgage because it's going to give you a significant tax deduction.

JULES SCHILLER:

Many people are pointing out on the text line, James Paterson, that a lot of young people mightn't have much more than 50k in their superannuation funds, so do you think it's a good idea for them to pull out future money for their retirement to buy a home now?

JAMES PATERSON:

Well, the most important thing about that policy is it's their choice. It's up to them to decide whether they think it's in their best interest. But what they are required to do after doing so is if they subsequently sell their house, they have to put the same amount of money back in their superannuation that they took out in the first place. So over time, what it should allow people to do is get into the housing market sooner than they otherwise would, build up their wealth in the value of their home and invest back into their super when they go to buy their second home when they transfer. And so it should lead to a more secure retirement because the most important thing to have a secure retirement is to own your own home. It's much harder to be financially secure in retirement if you're renting

TROY SINCOCK:

James Paterson, why is it a good policy to give people earning up to $144,000 a year a one-off income tax refund of up to twelve hundred dollars at a cost to the budget of ten billion dollars?

JAMES PATERSON:

Because people are really struggling right now. Australians have suffered terribly under Anthony Albanese's cost of living crisis. Their grocery prices have risen 30%. Their electricity prices are up 32%. Their gas prices are up 34%. And many Australians are barely keeping their head above water and have racked up big credit card bills over the last three years, just trying to make ends meet.

TROY SINCOCK:

But doesn't that run the risk of potentially adding to inflationary pressure, pressure that has tried to be alleviated in recent months?

JAMES PATERSON:

No, we don't think so because this is targeted, it is temporary and it's meaningful and it is scheduled to come in about 12 months time, which is when we think people will need it and we think also inflation will have come significantly down by then, both because that's the natural trajectory that inflation should follow at the end of the COVID pandemic period, but also because we've got policies to bring down inflation even further, particularly our energy policies, for example, injecting more gas into the east coast market to drive down those prices.

JULES SCHILLER:

You're listening to James Paterson. He is the Shadow Minister of Home Affairs, a Liberal Senator, and Coalition Campaign spokesperson. It's 19 minutes to nine. Sonia, Jules and Rory on 891 ABC Radio Adelaide. Senator, can I ask you about AUKUS, which is obviously very important to us here in South Australia? Your ex-colleague, Christopher Pyne, has just come from the US. He's worried about the future of AUKUS. He said initially it felt like a collaboration between three allies. Now it feels more like a commercial transaction and a favour to the Australian government and the UK from two powerful allies. Are you concerned about AUKUS considering what is happening in the USA? And would you support an inquiry into AUKUS if you were to win government?

JAMES PATERSON:

No, I don't support an inquiry into AUKUS. Let's be really honest about what that is. That is people who oppose AUKUS who are looking for a vehicle to talk it down. And it's being led by the Teals and the Greens. And they've always opposed it because they don't support the alliance with the United States.

JULES SCHILLER:

But Christopher Pyne was an ex-Defence Minister, though.

JAMES PATERSON:

Yes, and I've also seen Christopher say he still strongly supports AUKUS, and one of the concerns he has is people being negative about it and talking it down. I don't think we should do it. It's important for the future of our country, it's important for South Australia, it is important for our ability to defend ourselves, and the Coalition is utterly committed to delivering it.

SONYA FELDHOFF:

James Paterson is our guest here on 891 ABC Radio Adelaide. Now yesterday, neo-Nazis were protesting outside your office in Victoria, were you concerned by that?

JAMES PATERSON:

I'm not sure what they were trying to achieve. It might be that they were seeking to intimidate, but if that was their objective, it won't work on me. I am even more determined than ever before to stand up for Australians and protect them against extremists like these or any other extremists in our community. I mean, these people portray themselves to be patriots, but there is nothing patriotic about worshipping a failed foreign regime of one of history's worst losers, Adolf Hitler. The real patriots were the Australian men and women who fought and defeated Nazism and we must stand strong in this country every time its ugly head rears itself.

TROY SINCOCK:

Why'd you think you were targeted, James?

JAMES PATERSON:

Probably because I've been very outspoken about antisemitism in the country over the last two years and because I'm perceived to be close to the Jewish community. I'm very proud to stand with the Australian Jewish community. They've made a wonderful contribution to our country, and the antisemitism that they've suffered over the last year has been un-Australian and unacceptable. And whether it's neo-Nazis or anyone else targeting the Jewish community, they will have to come through me first.

JULES SCHILLER:

Finally and quickly, would you support, say, increased measures to prevent these sort of demonstrations if you were to win government?

JAMES PATERSON:

We've actually led the fight over the last few years to legislate on a bipartisan basis really strong laws that ban the public display of Nazi symbols that ban the Nazi salute publicly. I think the critical thing is first making sure those laws are enforced, making sure that people who engage in this reprehensible conduct fear the consequences of their behaviour, and once they do, I think you'll see a change.

SONYA FELDHOFF:

James Paterson, thank you for your time.

ENDS

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