In a surprising turn of events, the Australian Greens have announced their decision to support the Albanese government’s Help to Buy shared equity scheme for homeownership. The move comes after months of gridlock, with the minor party failing to secure any concessions from Labor in exchange for backing the bill.
Greens Leader Announces Policy Shift
Greens leader Adam Bandt, alongside housing spokesperson Max Chandler-Mather, called a press conference on Monday afternoon to reveal the party’s change in stance. The announcement dealt a blow to Chandler-Mather, who had successfully leveraged negotiations over the Housing Australia Future Fund in 2023 to pressure the government into committing billions more for social and affordable housing.
Under the Help to Buy scheme, the government contributes either 30% of the purchase price for an existing home or 40% for a new build, provided the applicants meet income thresholds of $90,000 for singles or $120,000 for couples. While this reduces upfront costs for homebuyers, the government’s share must be repaid upon the property’s sale.
Government Plays Hardball
In February, Prime Minister Anthony Albanese signaled the government’s intention to take a firm stance on the bill, insisting the Greens could either vote for or against it without any horse trading or further concessions from Labor. Initially, the Greens demanded reforms to negative gearing and capital gains tax concessions in return for their support.
There’s a big decision here for the Greens. Are they going to go into the next election as an ineffective party of protest or a party that works with the government on issues that are critical to Australians who are watching at home?
– Housing Minister Clare O’Neil
Reduced Demands Met with Rejection
Earlier in November, the Greens substantially scaled back their demands, instead calling for funding for an additional 25,000 social and affordable homes and a commitment that those whose income rises above the threshold would not be required to make immediate repayments. The party also sought changes to the build to rent tax incentives bill, the fate of which remains uncertain.
On Monday morning, Housing Minister Clare O’Neil rejected the Greens’ demands, accusing the party of doing “nothing but block and delay” the government’s attempts to address housing issues over the past two and a half years. O’Neil argued that the Greens’ actions, in collaboration with opposition leader Peter Dutton, had resulted in “more homelessness, fewer homes built, and fewer social and affordable homes built.”
Implications for Housing Affordability
The Greens’ decision to support the Help to Buy scheme without securing additional concessions from the government has significant implications for housing affordability in Australia. While the scheme aims to make homeownership more accessible for eligible buyers, critics argue that it fails to address the root causes of the housing crisis, such as supply shortages and the need for more social and affordable housing.
As the bill moves forward with the Greens’ backing, attention will turn to the scheme’s implementation and its potential impact on the housing market. The government will need to ensure that the program is effectively managed and targeted to those most in need of assistance, while also working to address broader housing affordability challenges through a range of policy measures.
The Road Ahead
The Greens’ shift in stance on the Help to Buy bill marks a significant development in the ongoing debate over housing affordability in Australia. As the scheme progresses, it will be crucial for policymakers, housing advocates, and the public to closely monitor its outcomes and continue to push for comprehensive solutions to the nation’s housing challenges.
With the Greens now on board, the Albanese government has cleared a major hurdle in its efforts to implement the Help to Buy scheme. However, the road ahead remains complex, as Australia grapples with the multifaceted issues of housing affordability, supply, and accessibility. The success of the scheme, and the government’s broader housing agenda, will ultimately depend on a sustained commitment to evidence-based policymaking and a willingness to engage with diverse stakeholders to develop long-term solutions.
