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Friday, 23 November 1979


The PRESIDENT - May I comment that in respect of requests for incorporation of material, I have been concerned at the extent of some of the incorporations. It is not desired to inhibit or restrict incorporations, but 1 ask my colleagues to remember that the incorporation of material, particularly statistics and figures, in large volume presents problems at times. I make that comment and suggest co-operation in that regard. As I have said before, it is not desired to restrict incorporations, as far as that is possible.


Senator COLSTON -I thank the Senate for that courtesy. Table 1 shows that for a person on a gross annual income of $12,000 a year, that is, about average weekly earnings, the maximum mortgage obtainable from the Commonwealth Savings Bank is $26,250. The full home savings grant of $2,000 covers the stamp duty and legal fees and leaves a remainder of about $500 to put towards the purchase of the home, If a person saved 1 5 per cent of his or her weekly income, it would take him or her five years to raise the $8,259 deposit required to obtain the loan. But by that time the price of a house in Sydney would have risen to well over $45,000. What about the family on an annual income of $8,000? We have to remember that 70 per cent of wage earners receive an income less than average weekly earnings. For a person on $8,000, the maximum mortgage available from a permanent building society is $17,600.

Table 2 shows that a person saving 15 percent of his or her income would have to save for 1 7 years to get the deposit of $16,439 required to obtain a loan. The homes savings grant is not of much help to people on those incomes. It does not help the home seekers to bridge the deposit gap and it does not bring a home within their economic means. Let us consider the case of a single income family in a Sydney suburb receiving a gross income of $ 10,000 and wishing to buy an average home in that area for $45,000. Even if the family saved 20 per cent of its income it would take 1 5 years to save the required deposit. Mr President, after your request a moment ago, I am not sure whether I should do this, but I seek leave to incorporate in

Hansardone further table showing the deposit gap for persons on average weekly earnings seeking to purchase a mediumpriced home in the five capital cities as at June 1979.

Leave granted.

The table read as follows-

 


Senator COLSTON -I thank the Senate. This table shows the inequity that exists between the different capital cities to such an extent that the situation in Sydney at present is that a person would need something like 200 per cent of average weekly earnings to buy a medium-priced dwelling. This is a long term problem that has been created by the Government. It is doing nothing to overcome the problem. I commend the amendment to the Senate.


The PRESIDENT -Is the amendment seconded?


Senator Robertson - I second the amendment.







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