Perrottet says his housing plan will spread across the country

The NSW premier believes his Future Fund, where the state government co-funds contributions to give kids a headstart for housing or education, may be picked up in other states | LISTEN

NSW premier Dominic Perrottet says he expects parents in other states will ask for similar policies. Picture: NCA NewsWire / Nikki Short

NSW premier Dominic Perrottet believes his Future Fund – where the state government will annually co-fund contributions to give kids a headstart for housing or education – may be picked up in other states across Australia.

Under the scheme every child under 10 in NSW will be set up with an account containing $400. Parents will then be able to add up to $1000 a year which will be matched by up to $400 from the government until the child turns 18.

The scheme is a key part of the election campaign for the Liberal premier.

Perrottet told this week’s Money Cafe podcast that: “Over time I think states will see this as a very attractive policy.”

Perrottet noted that Victorian Premier Daniel Andrews said that he had an ‘open mind ’ on the proposal.

The Andrews and Perrottet governments have previously co-operated on initiatives most notably on preschool programs.

“I would expect that many parents in other states will say...well, I want my children to have what they’re having (in New South Wales),” he says.

On criticism among economists that housing assistance ultimately pushes up all house prices, Perrottet disagrees.

“I’ve always disagreed with them on that. You know, first home buyers are not just competing against other first home buyers, they are ultimately competing against others who are existing home buyers who have had the benefit of the appreciation of that asset over a period of time,” he says.

“You have to do significant investment in supply side measures.”

In a wide-ranging interview on housing and the current rental crisis, Premier Perrottet also notes reports this week that Sydney’s house prices had shown their first month-on-month increase since January 2022.

Industry statistics show that Sydney was the first city to see price drops in the current cycle – which has seen nationwide price falls of around 9 per cent.

Asked if he expected Sydney would ultimately lead a house price recovery, he notes a recent conversation with agents.

“I think we are seeing a bit of that. I was speaking to some real estate agents just the other day and they are certainly seeing demand come back,” he says.

“I’ve always found that Sydney property market we go through a period of softness then all of a sudden it takes about 12 to 18 months before the demand is back to where it was.”

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The Money Cafe podcast is hosted by James Kirby weekly. Readers and listeners questions are always welcome via [e-mail]