The Greens will continue to push for a national freeze on rents and interest rate rises, declaring there is more the Albanese government can do to address Australia’s housing cost crisis.
Their call comes as the country’s peak housing bodies call for the debate deadlock to be broken and for Labor’s housing Australia future fund to be passed this week.
Senator Nick McKim will introduce a private member’s bill in the Senate on Monday which seeks to allow the commonwealth work with states and territories in a similar way to the energy market intervention and freeze rent increases for two years, cap increases thereafter and ban no-grounds evictions.
The bill comes as Greens dig in over their demand for action for renters before they support the housing future fund legislation, which remains in limbo without the minor party’s support.
Meanwhile, Everybody’s Home, Community Housing Industry Australia, the National Aboriginal and Torres Strait Islander Housing Association, Homelessness Australia, National Shelter, the Property Council and Industry Super Australia have joined forces to plead for urgent action.
“Australia can not afford to delay its response to the housing crisis any longer,” the groups said. “This is the worst housing crisis in living memory and the time has now come to pass this legislation.”
The Albanese government says a rental freeze would not address the housing problem and is instead concentrating on supply. It has put renters’ rights on the national cabinet agenda but continues to push back against Greens’ claims it could step in to regulate the rental market.
On Saturday the government announced a $2bn social housing “acceleration” fund which will begin flowing to the states and territories within two weeks as further proof the housing future fund was not its only action on housing.
Finally, a message to all who told the Greens to pass the HAFF 6 months ago. Every time Labor tells you something is impossible or you can’t hope for more. Remember days like today. The Greens stood up and won $2b. Now we fight for more every year and a freeze on rent increases.
— Max Chandler-Mather (@MChandlerMather) June 17, 2023
McKim’s bill sets the Greens up for another clash with Labor.
The “freeze on rent and rates increases” bill would also strengthen section 11 of the Reserve Bank Act, which gives the treasurer powers to overrule the Reserve Bank, including on interest rates.
The RBA review has recommended scrapping the power but McKim says it should be beefed up to make explicit that the government is ultimately responsible for monetary policy.
“This bill represents a tangible solution for renters and mortgage holders amidst an unprecedented housing crisis,” McKim said.
Record low vacancy rates have the RBA predicting further rent increases. Less than 1% of rentals are affordable for people earning minimum wage, while for people on fixed income support, the situation is even more dire.
Labor says its housing future fund is another piece of the solution and has accused the Greens of holding back attempts to address housing supply. The Greens argue other solutions are needed in the short term.
The housing peak bodies said “time is now of the essence” and the future fund needed to be passed to ensure the new institutions it would create, including the housing supply affordability council, could begin work.
“As advocates, we intend to build upon the new legislation by campaigning for additional resources in the years ahead,” their statement said.
“We know that the current legislation on its own will not fix the housing crisis. But it does create the institutions necessary to make a start. We consider this package a floor, not a ceiling.
“This is especially true for Aboriginal and Torres Strait Islander communities, whose housing needs have been consistently neglected, leading to severe overcrowding and poor health.
“The time for repairing our housing system has arrived.”
