Chanticleer Tax dodgers, feeling BHP’s pain & the problem with 5% home deposits
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Oct 3, 2025 Cosima Mariner, Editor at the Australian Financial Review, brings her expert insights to the discussion. She tackles the controversial 5% home deposit scheme and its potential impact on affordability for first-time buyers. The podcast also delves into the implications of China's ban on BHP iron ore shipments, and the RBA's cautious stance on future rate cuts. Cosima highlights the complexities of corporate tax avoidance in the tech sector compared to mining, shedding light on critical economic issues facing Australia.
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5% Deposit Scheme Risks Localised Price Jumps
- The government's 5% home deposit scheme increases demand where supply is already short.
- That mismatch risks lifting house prices more in targeted suburbs than Treasury's 0.5% national estimate.
Check Supply Targets Before Subsidising Demand
- Consider the supply side before expanding demand with subsidies because limited housing supply will amplify price rises.
- Monitor the government's 1.2 million homes target, as shortfalls make demand-side measures riskier.
Policy Is Political But Economically Risky
- The 5% guarantee is politically targeted at young voters but also reassures older parents concerned about their children.
- Yet economic rationalists warn it may be the wrong tool to fix affordability and could fuel further unaffordability.