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Isabella Higgins: Good morning, welcome to AM. It's Tuesday the 3rd of June. I'm Isabella Higgins coming to you from Gadigal land in Sydney. A third of Australian men have used some form of intimate partner violence in their lifetime, according to a new long-term national study. And this new data from the Australian Institute of Family Studies shows there's been an increase in self-reported violence since 2014. The research also indicates risk factors for this behaviour, which could help prevent violence before it happens, as Bridget Fitzgerald reports.
Bridget Fitzgerald: For more than two decades, David Nugent has had a front row seat to Australia's gender-based violence crisis.
David Nugent: Men often will look for a reason to justify their behaviour, and when it comes to family violence and the way we act out, it always comes back to a choice.
Bridget Fitzgerald: As the founder of Heavy METAL, Men's Education Towards Anger and Life, David Nugent runs behaviour change programs and counselling for men.
David Nugent: One of the things that keep men away from doing this work is that they don't believe that they're abusive towards their partner because he's physically not violent.
Bridget Fitzgerald: Data from the Australian Institute of Family Studies' Ten to Men report estimates that 35 per cent of adult men have used some form of intimate partner violence in their lifetime. The report shows a rise in intimate partner violence, up from one in four men reporting using violence in 2013-14.
Dr Kelsey Hegarty: Domestic or intimate partner violence is not reducing in this country.
Bridget Fitzgerald: Dr Kelsey Hegarty is the Chair in Family Violence Prevention at the University of Melbourne and a report co-author. Based on the responses of more than 4,000 men, the study found emotional abuse was the most common form of violence, with 32 per cent reporting that they'd made a partner feel frightened or anxious. Nine per cent had responded that they'd hit, slapped, kicked or otherwise physically hurt a partner in anger.
Dr Kelsey Hegarty: And it's the leading contributor to death and disability for childbearing women. It's harmful to children. It's harmful to the people who are using it. We need to try some new ways of preventing and early intervention.
Bridget Fitzgerald: The report also found that men with moderate or severe depressive symptoms have a 62 per cent increased risk of using violence.
Dr Kelsey Hegarty: We really need to identify and treat severe depression in men, but we also need to be asking more about their relationships and what's happening in their relationships. And the reason we're doing that is obviously to prevent escalation later on, but also particularly if there's children in those settings, to actually try and interrupt the role modelling of that sort of behaviour.
Bridget Fitzgerald: Men who had an affectionate father or father figure were less likely to use violence. So too were men with good social support. Micaela Cronin, Australia's Domestic, Family and Sexual Violence Commissioner, says prevention is the best way to end gender-based violence.
Micaela Cronin: If we're going to really radically look at how do we end gender-based violence, we need to be looking at what the causes are, where are the points that we can be intervening at every point to prevent violence.
Bridget Fitzgerald: David Nugent says he sees proof every day that violent men can choose to change.
David Nugent: It's very, very important to have those role models and support that don't hold that misogynistic, unhealthy perspectives of how men should be.
Isabella Higgins: Domestic violence advocate David Nugent ending that report from Bridget Fitzgerald. And if you're in an abusive situation or know someone who is, call 1800RESPECT. If it's an emergency, call 000. Australia's three million lowest paid workers will soon find out how much their pay packets will rise this year. The Fair Work Commission is set to determine the increase to minimum and award wages today. Many are looking for reprieve from the mounting cost of living, but business and employer groups warn too large a lift risks fuelling inflation. Political reporter Nicole Hegarty has more from Parliament House.
Nicole Hegarty: For Australia's lowest paid, every dollar counts.
Sally McManus: When you're a minimum wage worker it's all essential. So you don't save money, you survive.
Nicole Hegarty: And with the cost of living biting, that's truer than ever. Sally McManus is the Secretary of the Australian Council of Trade Unions. The Fair Work Commission is set to reveal how much minimum and award wages will increase from July. The ACTU is asking for a 4.5% increase.
Sally McManus: The Fair Work Commission didn't order enough for these workers to be able to keep the same position they were back in 2019. So part of our claim is catch up claim.
Nicole Hegarty: But businesses and employers are also under pressure as rents rise and consumers tighten their belts. The Australian Retailers Association is recommending an increase of no more than 2.5% on top of the 0.5% superannuation guarantee increase. In its submission it argues for an equitable and modest increase to the minimum wage that helps households without increasing business costs beyond what is needed to ensure wages keep pace with higher prices. Cost of living dominated the election campaign and the re-elected Albanese government is now asking for an economically sustainable real wage increase for the almost 3 million Australians on minimum and award wages. Treasurer Jim Chalmers says that can be achieved without pushing up inflation.
Jim Chalmers: The submission that we take reflects all of our economic objectives and primarily making sure that when people work hard they can get ahead.
Nicole Hegarty: It's a position employer groups have challenged. The Retailers Association warning in its submission additional wage pressure risks fuelling renewed price pressures and undermining economic progress. Chris Wright is a professor of work and labour market policy at the University of Sydney and says the international evidence is that there is room for an increase.
Chris Wright: The OECD has identified that there is scope for wage increases, especially for the lowest paid to occur without there being inflationary pressures of any significant scale.
Nicole Hegarty: And as the conversation turns to how to address Australia's productivity problem, Professor Wright says a wage rise may have a positive impact.
Chris Wright: Workers who feel like they're being paid fairly are more likely to be productive in their jobs and they're more likely to stay in their jobs.
Nicole Hegarty: The Workplace Relations umpire has historically decided on increases that fall somewhere between the demands of business and unions. And along with workers who rely on the wages at the heart of this decision, they'll find out soon how much pay packets will grow as of July.
Isabella Higgins: Nicole Hegarty there. WA Senator Dorinda Cox has quit the Greens and joined Labor in a shock defection. She says it's about getting results and not rebellion, but her exit has left the Greens blindsided and fuming. Political reporter Olivia Caisley joins me from Parliament House. Olivia, why did she walk away from the Greens?
Olivia Caisley: Well, standing alongside the Prime Minister in Perth yesterday, Senator Dorinda Cox says that her values align more closely with Labor and that she believes she'll be able to deliver better outcomes and results for the people of WA. She was a member of Labor briefly in her youth before she did join the Greens. Her switch though comes after months of internal tensions within her former party, so she failed in her bid to become deputy leader following the party's poor showing at the election, and there were also growing doubts that she'd secure a winnable spot on the next Senate ticket. The Greens say they were blindsided by this, that Senator Cox only called the Greens leader Larissa Waters about an hour before announcing her shocked defection, and there have also been allegations of bullying or a toxic workplace culture in her office, which emerged during the last term of Parliament. Anthony Albanese was asked about this yesterday and he says that he's confident that those issues have been dealt with. Here's, Senator Cox, yesterday announcing her defection from the Greens.
Dorinda Cox: Being in the government and alongside the wonderful team that the Prime Minister has, you are able to make change. You are able to do the things that raise up and represent the voice of Western Australia and Canberra, and that's what they elect me to do, so I will continue to do that.
Isabella Higgins: And Olivia, what does this mean for the Senate and for both of those parties?
Olivia Caisley: Well, when it comes to the composition of the Senate, it's not a major shift. The Greens will still ultimately hold the balance of power. So this defection takes Labor's senators in the upper house to 29. The Greens, meanwhile, will drop to 10. But Labor will still need to rely on the Greens for votes in order to pass legislation. Symbolically, though, this is a major blow to the Greens. So at the election, they lost three of their four lower house seats and also their former leader, Adam Bandt, who was unable to retain his seat of Melbourne. And now they've got a high-profile senator defecting without warning. There is a question about how Senator Cox will square some of her policy positions with Labor's party platform. So for example, just last week, she criticised the Albanese government for extending WA's North West gas shelf, a move that environmentalists have also slammed. So how she reconciles those views while inside the Labor tent remains to be seen.
Isabella Higgins: Olivia Caisley reporting there. A second round of direct peace talks between Russia and Ukraine has ended without a major breakthrough as other nations say they must be prepared for war with Moscow. Britain's Prime Minister Sir Keir Starmer says the threat of Russia can't be ignored, announcing the UK will expand its nuclear-powered attack submarine fleet under the AUKUS security pact with Australia and America. Europe correspondent Kathryn Diss reports from London.
Worker: Hello, Keir, nice to see you.
Kathryn Diss: On the front line of British security, UK Prime Minister Sir Keir Starmer announced what's billed as the biggest defence plan since the Cold War.
Kier Starmer: We are moving to warfighting readiness as the central purpose of our armed forces.
Kathryn Diss: After a ten-month review, the UK has revealed its strategy to tackle rising global threats, including those posed by Russia, China and North Korea.
Kier Starmer: When we are being directly threatened by states with advanced military forces, the most effective way to deter them is to be ready.
Kathryn Diss: The plan will include 12 more nuclear-powered submarines to better protect Britain's waters, which will come under the AUKUS alliance with Australia and the US. Six new munitions factories will be constructed across the UK. Investment in new technologies such as drones will be upped. Hundreds of long-range missiles will be manufactured and thousands of jobs will be created. It comes as Moscow and Kyiv met in Turkiye for a second round of peace talks. But, as expected, little progress was made towards a ceasefire. Ukraine's Defence Minister is Rustem Umerov.
Rustem Umerov: We firmly believe that all key issues can only be solved at the level of leaders. And the leaders' meeting could be with possible involvement of other leaders, such as the President of the United States.
Kathryn Diss: Moscow's demands for peace include ones we've heard before, such as recognition of Crimea, Luhansk, Zaporizhzhia and Kherson as regions of Russia, a complete withdrawal of Ukrainian troops from these areas and a ban on any military activities by third countries. Here's the head of Russia's delegation, Vladimir Medinsky.
Vladimir Medinsky: First, we've handed over our memorandum to the Turkish side, which consists of two parts. First, how to achieve a real long-term peace. And the second part is what steps should be taken to make a full-fledged ceasefire possible. Moreover, in the second part, there is even a variety of options. To enter this path or this path. The memorandum is quite detailed and worked through properly from our side. Therefore, the Ukrainian side decided to take it for study. If they study it, they will react to it. And we will see.
Kathryn Diss: The two sides did agree to another prisoner swap of the sick and wounded, as well as those under 25. Russia will also return the bodies of 6,000 fallen Ukrainian soldiers. But when it comes to ending the war, both sides appear worlds apart. This is Kathryn Diss in London reporting for AM. Earlier in the program, we heard about how prevalent domestic violence is. In a separate report released exclusively to AM, the Commonwealth Ombudsman found abusers are weaponising Australia's child support system. More than $1.9 billion in child support is unpaid, with the Ombudsman calling for new legislation to ensure this money goes to the one million children who rely on it. National Education and Parenting reporter, Conor Duffy, has this story.
Conor Duffy: After a four-month investigation and complaints from hundreds of parents, the Commonwealth Ombudsman, Iain Anderson, is today releasing a report highlighting financial abuse in Australia's child support system.
Iain Anderson: This is really important, Connor, because child support is all about children, vulnerable children who need to be financially supported while they're growing up.
Conor Duffy: The Ombudsman has concluded Services Australia is acting in an unfair and unreasonable manner in not using its enforcement powers to stop widespread financial abuse, defined as one parent weaponising the payment of child support. Mr Anderson says his report makes eight recommendations for sweeping changes, including new legislation. He says under the current system, some women feel unsafe just asking for what they're owed.
Iain Anderson: We've certainly had complainants who've said to them that this made them feel very unsafe and they in fact withdrew from processes and rather than seeking to pursue unpaid child support, they just said, I can't deal with this, I won't deal with this, I don't feel safe.
Conor Duffy: Mr Anderson also highlighted a provision in the law which requires Services Australia to assume all child support has been paid when assessing eligibility for Family Tax Benefit A.
Iain Anderson: Services Australia will actively pursue that debt and require it to be paid, even though the child support itself might not have been paid. So you might find you haven't been paid child support, but now you are actively being pursued for a debt for Family Tax Benefit A.
Conor Duffy: There are roughly 1.2 million parents in child support arrangements, with 83 per cent of paying parents male and 84 per cent of receiving parents female. Terese Edwards from Single Mother Families Australia says the Ombudsman's report is a breakthrough moment she hopes will turbocharge a long-running push for change.
Terese Edwards: The child support system has been a problem for decades. We're really letting our children down, but in the last decade we've understood it to really harm women as well.
Conor Duffy: In a statement, a Services Australia spokesperson said it fully accepted the recommendations and would be working to implement them between December 2025 and June 2026. Financial abuse and all forms of family and domestic violence are serious and damaging issues affecting many of our customers, the spokesperson said. In a statement, a spokesperson for the Minister for Social Services, Tanya Plibersek, said the government recognised child support was being used to exploit and traumatise women and where acting.
Isabella Higgins: Conor Duffy reporting. More than 80 years after he died, an Indigenous family have discovered the secret war history of one of their relatives. For decades, the story of service of Private Ngakyunkwokka was lost due to a spelling error. Now the Australian War Memorial is fixing that, as James Vyver reports.
James Vyver: In Wik country on the western side of Queensland's Cape York, the old Aurukun Mission Cemetery is filled with white wooden crosses. Among them, a gleaming white headstone stands out, the war grave of an Aboriginal World War II soldier, whose service and story has only recently been discovered by his great-niece, Ariana Yunkaporta.
Ariana Yunkaporta: We didn't know our great-great uncle was serving in the World War II. We were like, wow, we had an ancestors, you know, who served before and I was like really happy. I was like, wow, I don't know any white Australian served in the World War.
James Vyver: The soldier, Private Ngakyunkwokka, died in 1945 while on active duty for the Torres Strait Light Infantry Battalion. Incorrect mission and army records dating back over the last century led to the veteran being buried with the wrong name, Private Ngarkwokka. That error, carved in gold lettering, is still on the headstone today.
Ariana Yunkaporta: Seeing that grave for the first time, it was emotional and then I started like, had tears coming down.
James Vyver: It meant Ariana Yunkaporta and her family had no idea their ancestor was with them in Aurukun. The mystery of how the headstone bears the wrong name has now been solved after 80 years, thanks to a fellow digger and some luck.
Tim White: The last thing I expected to find in a cemetery in a remote Aboriginal community was a war grave.
James Vyver: In 2022, Aurukun local and army veteran Dr Tim White recognised the significance of the headstone, but not the Ngarkwokka name.
Tim White: My inquiry started that day. I've got to find out who this is and what the story is. If one of our Afghanistan or Vietnam veterans were buried under the wrong name, there'd be national outcry about it.
James Vyver: The incorrect records had also led to the soldier being listed with the wrong name on the roll of honour at the Australian War Memorial, twice. Well, his name has been changed three times. Australian War Memorial Director Matt Anderson.
Matt Anderson: We're determined now with the help of family, with the help of community that we've got it right. That's the right answer, to keep on striving for perfection. This is a roll of honour. This is the nation's debt recorded in bronze and if we can get it right, that's what we're determined to do and I'm just so pleased we've been able to do that.
James Vyver: A supplementary bronze panel now correctly reads Ngakyunkwokka C.B. The previous two incorrect names remain on the roll of honour. Army Reservists themselves, Ariana Yunkaporta and her brother Irwin, travelled to Canberra last week for a last post ceremony at the War Memorial. A service dedicated to a fellow soldier and their new-found uncle, finally recognised with his true name.
Ariana Yunkaporta: He's not just a role model for us, he's a role model to Aurukun as well, to the whole community.
James Vyver: The headstone on Private Ngakyunkwokka's grave will be replaced in the coming months.
Isabella Higgins: James Vyver reporting there. And that's AM for today. Thanks for your company. I'm Isabella Higgins.
Sam Hawley: Hi, it's Sam Hawley here, host of the ABC News Daily podcast. Since Donald Trump returned to the White House, Elon Musk has spent a lot of time inside the Oval Office. Now the world's richest man has been farewelled from his role in the Trump administration. Today, staff writer at The Atlantic, Ashley Parker, on Elon's exit and whether that's really the end of his role in politics. Look for the ABC News Daily podcast on the ABC Listen app.

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Alan Kohler on making housing a bad investment
Alan Kohler on making housing a bad investment

ABC News

time32 minutes ago

  • ABC News

Alan Kohler on making housing a bad investment

Sam Hawley: Interest rates might be coming down, but house prices are, once again, heading in the other direction. Given there is a major problem with housing affordability, and there are so many people who can't even afford to enter the market, why on earth is that? Today, the ABC's finance expert, Alan Kohler, on how conditions are ripe for a housing price surge, just as they were back in the early 2000s. In other words, why history's repeating. I'm Sam Hawley on Gadigal Land in Sydney. This is ABC News Daily. Sam Hawley: Alan, interest rates are coming down and they could drop even further this year. So that should mean houses are more affordable for borrowers. But it's not that simple and you're going to explain to us why. Now, to do that, let's go back to the turn of the century. In 2001, the Reserve Bank was cutting rates just like it is now, wasn't it? Alan Kohler: Correct. Sam Hawley: What was going on back then? Alan Kohler: In 2001, the Reserve Bank cut interest rates six times that year. News report: Nervous anticipation for one of the Reserve Bank's most expected interest rate cuts, the sixth and last this year. Alan Kohler: And that was in response to the dot-com crash in the United States, which happened on basically in March of 2000. It continued for a while. The Nasdaq halved, more than halved. And there was a recession in the United States. The Reserve Bank was concerned that the Australian dollar would rise too much because of that, because obviously the US Federal Reserve was cutting interest rates in response to the recession. So the Reserve Bank of Australia cut interest rates in precaution, even though there was no recession in Australia. The economy did slow a bit. There was a bit of a fall in the share market, but not anything like what happened in the US. Sam Hawley: And the other thing that was happening back then was there was some pretty major policy changes, including the introduction of the capital gains discount and the return of a first home buyers grant. So just remind me of those policies at that time. Alan Kohler: Yes. So in 1999, the Howard Government appointed a business tax review committee, a panel of three businessmen to report on the business tax system. And what they wanted to do, what Howard and Costello wanted to do then, was to reduce the company tax rate from 36 to 30%. So they asked some businessmen to tell them whether that was a good idea. And well, they told them it was a great idea. Go ahead. But in the course of doing that, they also recommended a change in the capital gains tax regime so that instead of the capital gains tax being adjusted for inflation, they recommended a simple 50% discount, which the Howard Government duly applied. Peter Costello, then-Treasurer: Under the reforms which we announced today, a 50% reduction in the taxable gain, that is 50% of the gain is not taxable. Alan Kohler: And although it's the case that that didn't really change the amount of capital gains tax at the time because inflation was quite high. So actually, the 50% discount was roughly the same as the inflation adjustment for the average time that people were holding assets. What I think happened was that it changed the psychology of investing in property because everyone understands a discount, whereas nobody really gets inflation and certainly can't do it in their heads. Sam Hawley: So even if you don't understand capital gains tax, just understand that if it's 50% discount, that's a good thing. Alan Kohler: Exactly. Sam Hawley: If you're a homeowner, right? Alan Kohler: Precisely. And that added to negative gearing, which had been in place for a long time, to make investing in housing an attractive thing to do. The businessmen who recommended it thought that it would lead to Australia becoming a nation of share owners and buy the shares of their companies and drive the prices higher and lower their cost of capital. But that, in fact, didn't happen because people just want to invest in housing. And that's what happened. And as you say, also the Howard government reintroduced first homebuyer grants in 2000, which had been out of action for a while. The first homebuyer grant was in the 1960s under Menzies, but the Hawke-Keating government didn't do them and Howard reintroduced them. Sam Hawley: Okay, so rates are going down. There's these two major policy changes. And at the time, there was a simply huge rise in immigration. Alan Kohler: Exactly. And what caused that in around about 2005 was a change to the way foreign students were assessed in 2001. On July 1st, 2001, the system was changed. Up to that point, foreign students' visas were issued on the basis of either gazetted countries or non-gazetted countries. China and India were included in the non-gazetted countries and it was very difficult for students from those places to get a visa. After July 1st, 2001, that changed and became the same for everybody, which is the way it ought to be, of course. But that led eventually to a huge increase in students from China and India from the mid-2000s. And that led to a doubling and then tripling of net overseas migration into Australia. At the time. Sam Hawley: Wow. All right. So we get a pot and then we put all these things into it and we stir it around. So there's the capital gains tax, there's the first homeowner's grant, the rates are dropping and there's this massive increase in immigration. And when you stir it all around, you come out, Alan, with house prices rising. Alan Kohler: Yes. Well, so all of those four things that we've discussed added to demand from investors and migrants and so on. So there was a big increase in demand, but there was no response in supply. The government did nothing about increasing supply at the time. And the result was that for 10 years, between 2005 and 2015, there was a dire, big shortage of housing, an undersupply of housing for a decade, which really set the scene for a big increase in house prices. And what happened was that the house price to income ratio rose from between three to four times incomes, this is average incomes in 2000, to eight or nine times incomes at the end of that time. And that was a huge change in the way that housing related to people's incomes and also GDP of the there was a stop to immigration during the pandemic. And then post the pandemic, population growth has gone back to more than 2% per annum, which is what it was in the period after 2005. Sam Hawley: All right. So, Alan, that's the history of the skyrocketing house prices and how we ended up here. Now, today, interesting that we have exactly the same conditions. Alan Kohler: That's right. The Reserve Bank is cutting interest rates, probably not by six times, but by probably four or five times this year, possibly into next year as well. We've got first time buyer grants back on. We've got a big increase in migration. I mean, the Treasury forecast in the budget for this financial year, net overseas migration is 335,000. But in the first nine months of the year, it's already 360,000 and looks like being 400,000 this year. There's no targets on immigration, but there's a Treasury forecast and net overseas migration is going to well exceed the Treasury forecast. And of course, there's been no change in the capital gains tax discount because the Labor Party failed to win in 2016 and 2019, where that is their policy to reduce it 25%. All the conditions are in place for another rise in house prices. Sam Hawley: Exactly. So what are we seeing already and what do we expect to see then when it comes to the cost of housing in Australia? Alan Kohler: Between November last year and January this year, house prices actually fell by close to 1%. This is the national median price, having increased 17% in the previous 12 months or so. And since January, they've risen again by more than the increase in average wages over that period. News report: House prices are continuing to rise across the country, with experts predicting property values to grow between 6 and 10% by the end of the year. All the capitals rose more than 0.4 of a percent in May. That brings the national index 1.7% higher over the first five months of the year. Alan Kohler: House prices are already starting to rise in excess of the rise in incomes. And the thing is, you know, everyone says houses are unaffordable, which is kind of true, which you would think would mean house prices don't rise very much now, because if they're unaffordable already, then people can't afford them. But in fact, falling interest rates makes them more affordable. The determinant of affordability is the amount you can afford in terms of interest repayments or mortgage repayments. Really, a better measure might be time to save a deposit, because the problem is that deposits are becoming unreachable for a lot of people. So housing is becoming inaccessible. It's OK if you've got a deposit, because your parents have given you one, given you the money, but those who don't have access to some sort of provision of a deposit can't get into housing. And that's the problem. Sam Hawley: Yeah. There's just a certain number of people that keep buying properties and pushing the amount or the cost of properties up. I mean, there's enough people that can afford the properties because the property price keeps going upwards and upwards. Alan Kohler: Correct. The truth is that if you don't have a parent who can give you the money for a deposit or some other way of getting ahold of a deposit, as opposed to saving it, you're a renter. You cannot buy a house. That is the reality of the situation, particularly in Sydney, Brisbane and Melbourne, but increasingly in Perth and Adelaide and Hobart as well, and also everywhere in Australia. I don't know what's to be done about it, really. Sam Hawley: All right. Oh, gosh. So, dare I ask you then, if you don't have the bank of mum and dad or any family members that can actually help you in this process of getting this massive deposit to buy a home, is there really no chance ever that you're going to land in the property market at this point? Alan Kohler: Well, there has to be a big shift in the value of housing versus incomes. Prices would need to go back to the sort of relationship to incomes that they were 25 years ago, which is three to four times instead of the current sort of nine or 10 times. And the only way that's going to happen is if house prices stay where they are for a while, like a long time, like 20 years. Now, that will only happen if there's an oversupply of housing for that period. Both the federal government and the state governments are all doing what they can. They're working hard. I know, you know, they're genuinely working hard to increase supply, but there's a problem. The trouble is that the construction industry doesn't have the capacity, partly because productivity is so low. In fact, the Committee for Economic Development in Australia, CEDA, released a report about construction productivity and why is it so low. And they do say in the report that we're building now half as many houses per worker as we did in the 70s. So that's fallen by half. But not only is productivity low, the number of workers is also in decline because the average age of builders tends to be quite high. They're all retiring and there's not enough apprentices coming through. The government is talking about increasing the number of tradies who they bring in as migrants, which is definitely what's needed. They're not talking about anywhere near enough of them coming in. And any way, the regulator of the industry is reluctant to recognise foreign qualifications in the construction industry. So, you know, there's a real kind of blockage of kind of productivity and number of people in the construction industry. I think it's going to be difficult to achieve the kind of oversupply of housing over the next sort of decade or two that is required. Sam Hawley: And Alan, while we're waiting for all these houses to be built, conditions are absolutely ripe for house prices just to keep surging. Alan Kohler: Yeah. And the governments, in addition to doing the work that they're doing on supply, which is good, they're also kind of doing short-term band-aid measures, including helping first homebuyers, either through help to buy schemes or grants and so on. And so that just tends to increase demand and increase prices, because a lot of those grants just end up on the price. So, yeah, look, I don't think it's particularly good news on the subject of housing. I'd like it to be different. And there's no big magic bullet. There's just going to be a lot of sort of small work, grinding work to be done. And, you know, the fact is we have to go through a period where housing is a really bad investment. Sam Hawley: Alan Kohler presents the Finance Report on the ABC's 7pm News. This episode was produced by Sydney Pead. Audio production by Adair Sheppard. Our supervising producer is David Coady. I'm Sam Hawley. Thanks for listening.

Australia and the European Union determined to seal trade deal as talks revived
Australia and the European Union determined to seal trade deal as talks revived

ABC News

time2 hours ago

  • ABC News

Australia and the European Union determined to seal trade deal as talks revived

Australia and the European Union have revived talks for a sweeping free trade agreement as the Albanese government aims to respond to a "rapidly changing global environment" on tariffs. Australia's trade minister Don Farrell met with the European Commissioner for Trade Maroš Šefčovič met on the sidelines of a summit hosted by the Organisation for Economic Cooperation and Development (OECD) in Paris on Wednesday, local time. "Both Australia and the EU recognise that now is the time to strengthen our economic partnership, and we're working through the remaining issues to try and finalise the deal," Mr Farrell said. A pact with the region was "about building economic resilience in a rapidly changing global environment," he added. It came as US President Donald Trump imposed 50 per cent tariffs on steel and aluminium imports on Wednesday, leaving America's trading partners reeling from the fresh uncertainty. Mr Sefcovic told journalists "we believe we can achieve substantial progress this year" on an EU-Australia free trade deal, after negotiations have been on ice since 2023. Australian officials could not put a solid timeline on when a pact would be signed, but agriculture is believed to be one of the sticking points. Australia has previously offered to put the removal of its luxury car tax on the table but wants greater access to European markets for lamb and beef exports. However, some big meat-producing EU member countries like France have reservations about opening the bloc's markets to potential major competitors like Australia. Such concerns are also holding up talks with South American countries. The advantages of an EU deal include increased investment, stronger supply chain links, education ties and export opportunities, Mr Farrell said. Earlier on Wednesday, the United States set a deadline for countries to send their best offer in trade negotiations. In February, Mr Trump raised steel and aluminium tariffs to a flat 25 per cent "without exceptions or exemptions", in one of his first moves to aid the struggling domestic industries. The tariffs would apply to millions of tonnes of steel and aluminium imports from Australia, Canada, Brazil, Mexico and other countries that had previously been able to enter the US duty-free. On Saturday, Mr Farrell, said that Australia's messaging throughout the upheaval has been consistent and clear. "These tariffs are unjustified and not the act of a friend," he said. Asked what leverage Australia might have to pressure Mr Trump into changing course, Mr Farrell reiterated the government's position that it would not be in Australia's best interests to retaliate. "We're going to coolly and calmly argue our case for the removal of these tariffs," he said. "They don't do what President Trump claims they will do, and we believe that free and fair trade requires [their] removal." ABC/Reuters

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