Budget, housing supply and a “first-class challenge”: Westpac CEO on the economy’s next phase

Marina Karpathios
06:00pm May 15 2026

Earlier this week, Westpac CEO Anthony Miller sat down with Steve Austin of ABC Radio Brisbane to unpack his thoughts on the Budget, housing affordability and why Australia's economy largely remains “in a good spot” despite the pressure. 

For Australians trying to buy a home, the Federal Budget may change the settings around property, but it doesn’t change the fundamentals of getting approved for a loan or the core issue driving affordability. 

 

That was the message from Westpac CEO Anthony Miller, speaking to ABC Radio Brisbane’s Steve Austin this week, where he framed the Budget through a practical lens of what it means for borrowers, buyers and household finances. 

 

At the heart of it, he said, is a simple but stubborn problem. 

 

“The key challenge for the country is supply of houses.” 

 

What the Budget means for aspiring homeowners 

 

While policy changes to capital gains tax and negative gearing have sparked debate, Miller said they don’t materially alter how banks assess borrowers. 

 

“When anyone looks to apply for a loan, it's fundamentally, ‘Can they service the loan?’,” he said. 

 

“That’s the building blocks of determining whether the loan is the right one for a customer.” 

 

More buyers, same bottleneck  

 

Government schemes designed to lower the barrier to entry - such as low-deposit pathways - can help more Australians into the market. But Miller said they don’t solve the underlying imbalance. 

 

“It gave a lot more people the hope or the opportunity to go and see if they could buy a property,” he said about the Government’s 5 per cent deposit scheme. 

 

“But what it didn't solve for… is the fact you just need to build a lot more properties at the right price point.” 

 

In that context, Miller said the government’s shift toward encouraging new builds, instead of investment in existing homes, makes sense. 

 

“I understand that logic… [it’s about] reducing the incentive for investors to buy existing homes and… challenging them to buy and build new houses.” 

 

Brisbane shows what faster supply can look like 

 

Miller pointed to southeast Queensland as an example of where momentum is building, describing the housing market as “robust”. 

 

“The approval processes here are faster and more streamlined than almost any other part of the country,” said the former Queenslander, who bought his first property in 1997 in Brisbane’s Stafford, although that came with its own stretch. 

 

“I [put] every single last cent I had in my pocket, then some… into the deposit... I was very lucky to get a loan back then,” he said. 

 

Miller sees reasons for optimism, particularly in southeast Queensland. 

 

Describing the region’s economy as “in a very good spot,” with an “impressive” focus on construction, for Miller, it's that precise kind of progress that speeds up approvals and increases supply that's key to improving affordability nationwide. 

 

“There’s some really outstanding work being done in driving the construction of dwellings to meet the demand,” he said. 

 

Cost of living pressure and perspective 

 

For households, the broader backdrop remains challenging, with inflation and interest rates still weighing on budgets. 

 

Miller acknowledged that strain but framed it within a more resilient national picture. 

 

“We respect that cost of living is a challenge, but the country is in a good spot,” he said. 

 

“Our debt to GDP is lower than almost any other first world country… there is so much upside for Australia.” 

 

He describes the current environment as “a first-class challenge,” but points to strong employment and economic growth. 

 

For borrowers, interest rates remain a key uncertainty. Westpac’s economists expect further increases this year, though nothing is locked in. 

 

“I think there's likely two, but… it's data dependent,” Miller said.

 

Shifts beyond housing: on EVs and payments

 

Consumer behaviour is also evolving.

 

Westpac is seeing “a really big increase in EV vehicle financing,” Miller said, signalling growing mainstream adoption as fuel costs and technology shift preferences.

 

At the same time, questions remain around long-term value.

 

“What is the resale value of an electric vehicle three years after you bought it… when really it’s all about the battery?” he said, highlighting an area still playing out for buyers.

 

And while digital payments dominate many transactions, Miller is clear that cash still has a role.

 

“I’ve always got some cash in my pocket.

 

“If I need to get a coffee, there cannot be any gap between me and getting that coffee,” he said.

 

Miller notes cash now accounts for about 8 per cent of payments by value, and he expects it to endure.

 

“I can assure you that cash is here to stay and we're working very hard to make sure that all the infrastructure is in place.”

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