‘Ponzi scheme’: Perrottet unloads on Commonwealth over immigration

In a rare public appearance since the election, ex-premier Dominic Perrottet called for Canberra to compensate states for immigration, while saying everything - including negative gearing - reform should be on the agenda to build more houses.

Relying on high immigration rates to drive economic growth is “lazy economics” and negative gearing reform should be back on the table, former NSW premier Dominic Perrottet says.

In a rare policy intervention since losing the March election, Mr Perrottet has called for the Commonwealth government to spend more on infrastructure to support population growth to compensate states who take the greatest load.

In the same remarks, Mr Perrottet called for negative gearing reforms to be discussed, as a possible solution to the housing affordability crisis.

He made the comments at a Property Council of Australia event, the first time Mr Perrottet has publicly weighed in on policy issues since moving to the opposition backbench.

Mr Perrottet said that the government’s ambitious target of building 75,000 homes each year would not be enough to ease the housing crisis because those homes will be swamped by high migration rates.

Mr Perrottet called for the Commonwealth government to chip in more money to support infrastructure to build high density housing in Sydney. Picture: NCA Newswire

In the year to June 2023, the NSW population grew by 174,200 due to overseas migration.

In the same time frame, just 44,500 new homes were completed.

“There’s not enough homes being constructed for people who aren’t even here yet, let alone for our own Australians,” Mr Perrottet said.

He criticised runaway population growth as a “lazy” way for the Commonwealth to prop up its books, and said states need more support to build extra homes.

“The advantage of immigration is that it drives up revenue receipts or income tax, and it drives economic growth, but ultimately, it’s lazy economics, simply having immigration as a Ponzi scheme,” he said.

Mr Perrottet said using immigration to prop up the economy was a “Ponzi scheme”. Picture: NCA Newswire

“I believe the federal government should be providing more infrastructure investment to the states.”

Premier Chris Minns has already conceded that NSW will fall short of this year’s housing targets, in an interview with The Daily Telegraph last month.

To speed up housing construction, Mr Perrottet said, the Planning Department needs to be put in charge of “driving every one of those other agencies” involved to deliver infrastructure such as roads, sewerage and water infrastructure.

The former premier backed building apartments to get people into homes. Picture: NCA Newswire

He backed higher density around transport hubs, supporting building more apartments to increase supply.

“I’m very concerned that my children will never buy their own place in Sydney,” he said.

Mr Perrottet also called for everything to be on the table when it comes to fixing the housing crisis, including negative gearing reform.

“The society today is very different than it was 100 years ago, and the tax system that’s in place today is still reminiscent of that,” he said.

“It should be changed in such a way that drives opportunity, and things like negative gearing should be looked at. It could drive supply.“I’m not advocating one way or another [on negative gearing]. But I’m saying it’s good government to go looking at this issue holistically. Should put everything on the table. ”

Mr Perrottet made the comments while in discussion with former premier Bob Carr and Sky News host Laura Jayes.

Mr Carr used the function to urge the Minns government to go further on higher density housing, while slamming anti-development mayors as “out of touch” with public opinion.

Ex-premier Bob Carr said the Minns government should go further on higher density. Picture: Jonathan Ng

Under plans announced last year, Mr Minns wants to rezone areas within 1.2km of eight railway stations.

“You could really have that policy apply to a bigger area,” Mr Carr said.

Asked about criticism from Western Sydney councils about the density plan, Mr Carr said mayors who are complaining are “out of touch with their own public opinion”.

“Their own residents would find nothing objectionable about more tower development around major transport arteries.”

He said the great Australian dream of owning a house with a block of land has been “overtaken by reality”.

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