Australia politics live: Anthony Albanese says tax reforms ‘make system fairer’ and backs Paul Hogan on Pauline Hanson

The prime minister tells 7.30 the housing market was ‘broken’. Follow today’s news live

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The prime minister says he “doesn’t want to live in a society that’s defined by intergenerational inequity” after clearance rates fell below 50% in most major capital cities in the wake of the government’s housing reforms.

Appearing on ABC’s 7.30 program on Monday evening, Anthony Albanese pushed back at criticism that a post-budget fall in housing prices was evidence that Labor had taken the wrong path in legislating the taxation changes:

What is important is that last Saturday, when people went to buy their own home … they weren’t competing against investors who knew that if they could bid an extra $20,000 or or $50,000, then taxpayers would essentially be subsidising that by increased deductions.

This is about making the system fairer … We know there’s been a 400% increase in house prices since 1999 – more than double than wages, and that’s why we couldn’t continue to sit back and not pursue this reform … We’ve seen homeownership rates drop for younger Australians. And I don’t want to live in a society that’s defined by intergenerational inequity.”