In a high-stakes political showdown, the Labor government has rejected the Greens’ latest attempt at compromise on the contentious Help to Buy housing bill. With the parliament’s final sitting week of 2024 now underway, the fate of the legislation – and the dreams of aspiring homeowners across Australia – hangs in the balance.
The Greens, who hold the balance of power in the Senate, had initially demanded sweeping changes to negative gearing and capital gains tax in exchange for their support. However, last week saw the minor party back down, instead putting forward a revised set of demands focused on increasing funding for social and affordable housing.
The Greens are offering Labor an opportunity to announce the construction of 25,000 social and affordable homes, helping over 60,000 people into affordable homes in the middle of a housing crisis, why on earth would Labor block that?
– Max Chandler-Mather, Greens housing spokesperson
But the olive branch appears to have been swiftly snapped, with government sources labeling the Greens’ proposals variously unlawful, unhelpful, or a wasteful use of taxpayer funds. The Housing Minister, Clare O’Neill, did not mince words in her assessment of the minor party’s tactics.
This continuous charade from the Greens has to stop. You get the distinct impression the Greens want Australians to continue to be in housing distress, so Adam Bandt can try to harvest those grievances into votes. It’s the crassest form of politics there is, straight out of the Peter Dutton playbook.
– Clare O’Neill, Minister for Housing
Key Sticking Points
Central to the impasse are the Greens’ demands for the government to:
- Fund the construction of more homes under the Housing Australia Future Fund within the next 12 months
- Increase the number of affordable tenancies delivered through the Build to Rent scheme
- Make alterations to the settings and criteria of the Help to Buy program itself
But Labor argues that acquiescing to the Greens would not only be counterproductive to the bill’s aims, but potentially breach legislation that prohibits the relevant minister from directing specific funding allocations.
Time Ticking for Struggling Homebuyers
As the political arm-wrestle continues, the plight of those locked out of the housing market grows more acute by the day. With interest rates and cost of living pressures soaring, many fear the dream of home ownership slipping further out of reach.
The Help to Buy scheme, a key election promise, aims to assist up to 40,000 households into their own homes through a shared equity arrangement. The government would take a stake of up to 40% in the property, greatly reducing the deposit and mortgage requirements for eligible buyers.
But with the Greens holding firm, and the Coalition indicating they will oppose the bill outright, the window for a resolution is rapidly closing. The impending long parliamentary break means that if the legislation is not passed this week, struggling homebuyers may be left waiting until at least February 2025 for relief – and possibly longer if the standoff triggers an early election.
Battle Lines Drawn
Both Labor and the Greens are digging in, insisting the other side must blink first. Minister O’Neill was scathing in her assessment of the Greens’ record on housing:
Consistently throughout this Parliament, the Greens have blocked and delayed action on the housing crisis, looking for every excuse to vote down legislation which is clearly good for the country.
– Clare O’Neill, Minister for Housing
But Greens leader Adam Bandt was equally forthright, arguing Labor was putting politics ahead of people:
Labor has a choice – work with the Greens to get more affordable housing built and bring down rents and mortgages for everyday Australians, or continue to defend the interests of their corporate donor mates and the wealthy. It’s that simple.
– Adam Bandt, Leader of the Australian Greens
What Comes Next?
All eyes will now turn to the Senate, with a final vote on the Help to Buy bill expected on Tuesday. The Greens have indicated they are still prepared to negotiate in good faith, but both sides appear to be hardening their resolve.
If no agreement is reached, Labor faces a choice between abandoning a signature policy or making good on their threat to take the fight to the people via an early election. The Prime Minister, Anthony Albanese, has previously refused to rule out going to the polls over the housing standoff.
For the thousands of Australians desperately watching on, hoping for a lifeline into the housing market, resolution can’t come soon enough. But with both parties seemingly content to stare the other down, those on the housing precipice may be left wanting a while longer.
As the final sitting week unfolds, and the Help to Buy bill edges closer to its moment of truth, one thing is certain – in this high stakes game of political brinkmanship, it will be Australia’s aspiring home owners who ultimately pay the price.
