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Australian Treasurer Jim Chalmers has defended the government's economic forecasts regarding housing prices following a conflicting report from the Commonwealth Bank. Chalmers argued that the bank's data does not account for the same timeframes as government models and noted that interest rates remain a primary driver of market trends.
Why it matters
This highlights the ongoing political and economic tension in Australia regarding housing affordability and the accuracy of government fiscal policy projections.
Jim Chalmers has defended Treasury’s forecast on the impact of the government’s recent tax changes on housing, after the Commonwealth Bank predicted prices could fall by almost 10% across capital cities.
Treasury modelling said the changes would reduce house price growth by just 2% over the next couple of years.
Speaking on ABC’s 7.30, the treasurer said the new data did not fairly challenge the government’s forecast.
double quotation mark That Commonwealth Bank forecast that you reference in your question has house prices recovering next year, and so it’s a really important reminder that we need to compare ‘like with like’.
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