Scott Morrison slammed as ‘hypocrite’ for criticism of Labor’s housing plan

Scott Morrison has been slammed as a “hypocrite” for his criticism of Labor’s home ownership scheme, because his loan policy works the same way.

Prime Minister Scott Morrison has been slammed as Australia’s “biggest hypocrite” for describing parts of Labor’s home ownership scheme as “insane”, because the exact same rules apply to his own pensioner loans scheme.

Under Labor’s new plan, families can get a reduced mortgage where the government takes a stake of up to 40 per cent in the family home but the estate needs to settle the debt or sell the property to pay off the government’s equity share if the owner dies.

However, under the Prime Minister’s own pensions loan scheme – now rebadged as the Home Equity Access Scheme – grieving families also need to pay up – to the bank – within 14 weeks.

“Australia’s biggest hypocrite strikes again. Not only has he spruiked shared equity in the past, he has his own similar scheme for pensioners and seniors,’’ Labor’s housing spokesman Jason Clare told news.com.au.

“And when you die, your relatives have only 14 weeks to pay up (the debt) or sell.”

The Prime Minister announced the reverse mortgage style plan in his 2018 budget speech.

The reverse mortgage style loan offered by the federal government allows borrowers of Age Pension age to receive a tax-free fortnightly income stream.

However, Mr Morrison attacked Labor’s own plan this week as “insane”, warning that the Labor leader would be putting up “for sale” signs.

“If your wage goes above, you know, your household income goes above $120,000 a year, Anthony Albanese will put a for sale sign on your lawn,’’ Mr Morrison said.

“You actually have to dispose of the asset and pay back the Government. I mean, this is insane.”

The PM has slammed Labor’s affordable housing policy as “insane”, because participants would be forced to sell the home to repay the debt out of their estate when they died, but his own Home Equity Scheme works similarly. Picture: NCA NewsWire / Gaye Gerard

It was an attack line Housing Minister Michael Sukkar also deployed during an interview with 2GB radio host Ray Hadley.

“In the case of someone who inherits a property from their parents, if they don’t qualify for the scheme, they’ll be forced to sell, and the Commonwealth will take its 40 per cent share, which is essentially a charge on the death of your parents,’’ Mr Sukkar said.

However, Labor says the argument is ridiculous when the Prime Minister’s own Home Equity Access Scheme also requires debts to be settled on death.

“If there’s an outstanding loan after your death, we’ll generally seek repayment from your estate after 14 weeks,’’ the rules state.

“We may defer repayment if your surviving partner is both: Age Pension age or older

and living in the real estate used as security.”

Mr Morrison has maintained that the shared equity schemes he has promoted involve banks – not the government.

“Well, I had no plan for a government owning people’s homes,’’ he said.

Prime Minister Scott Morrison said his scheme differed from Labor’s, as the debt would lie with the bank, not the government. Picture: Jason Edwards

Families and Social Services Minister Anne Ruston said noone was forced to repay the loan within 14 weeks.

She said the estate is simply notified from 14 weeks regarding the existence of the debt, and that repayment of the loan is at the behest of the estate, which can take some time to settle.

“Jason Clare should spend less time writing zingers and auditioning for the leadership and more time on his own policies, which may as well have been written on the back of a napkin,’’ Ms Ruston fired back on Wednesday.

“Unfortunately, this totally inept Labor Party has no idea of the details of any policy - their own Forced to Sell Scheme included.

“These are completely different schemes - Jason Clare may as well be comparing fresh apples with rotten oranges.

“The Home Equity Access Scheme is for senior Australians who already own their home to get access to cash using the equity in their property.

“Most importantly, the Government does not benefit at any point from the increase in capital value of the property.

“We do not force the sale of the property. Labor’s plan is for the Anthony Albanese to own 40 per cent of your home from day one and never let you build up the equity in the first place.”

Originally published as Scott Morrison slammed as ‘hypocrite’ for criticism of Labor’s housing plan