During her appearance at the Senate estimates this morning, Bullock faced questions from Greens senator Nick McKim regarding the Reserve Bank’s involvement in the housing crisis.

“The $400 billion that the RBA generated in the first year or two of COVID and effectively provided to retail banks, who then used it to finance the property market, do you agree that this contributed to the housing price bubble observed over the last five years?” McKim inquired.

“I have done no particular analysis on what removal of the capital gains tax might do,” she said.

“It’s (not) my job to tell the government what they should do with the policy,” she added. 

However, when questioned by Liberal senator Andrew Bragg about the potential effects of the federal government’s expanded first home guarantee scheme, Bullock acknowledged that it might cause house prices to increase “slightly” in the short-term.

But as for the medium-term impacts, she said that would depend on – you guessed it – supply.