This article is from the Australian Property Journal archive
PRIME Minister Anthony Albanese has dangled the threat of a double dissolution election in front of the Greens over their opposition to the $10 billion Housing Australia Future Fund (HAFF), while property groups urged MPs to pass the legislation, which is being reintroduced to the lower house this week.
The off-budget Fund would deliver 30,000 social and affordable homes over five years.
The government, in the face of opposition from the Greens and the Coalition, made a last-ditch bid in June to get the Greens onside ahead of the parliamentary recess, pledging $2 billion that would go directly to states and territories within weeks to deliver new social and community housing, and a guarantee the Fund would provide a minimum of $500 million of funding to building housing over five years from 2024-25, rather than a maximum. It also said both the Treasurer and Finance Minister would be able to increase that amount by regulation.
However, the Greens remain steadfast in their calls for a fund of at least $1 billion that would incentivise states and territories to introduce national rent freezes.
The Senate debate was pushed back to October and voters could be sent to an early election if the bill is rejected by Parliament a second time.
Albanese on Friday ruled out an election in 2023, but the spectre of an early election still looms.
“The way in which you rule out having a double dissolution election is to have no triggers,” the Prime Minister told reporters.
“Quite clearly, we have a mandate for this, we want this to be passed.
“A secure roof over your head is a precondition for a good quality of life, and that’s why my government is determined to do everything that we can to advance our housing agenda.”
He again rejected the Greens’ call for a national rent freeze.
“What states and territories are doing is looking at their jurisdictions, and we’ll have a discussion about renters’ rights.”
Greens MP Max Chandler-Mather, who is the party’s spokesperson for housing and homelessness, told Sky News that the party is “willing to negotiate, but a negotiation takes two to tango, and the government’s saying it’s their way or the highway”.
“When their way is hundreds of thousands more people waiting for public and affordable housing and millions of renters facing financial stress, that’s not a negotiation.”
Rents climbed in more than 90% of Australia’s markets over the past year, according to CoreLogic, with the majority of unit markets recording increases of 10% or more. Australia’s capital city asking rents were up again over June, tipping to over $665 per week, as the national vacancy rate came in at a low 1.3%.
Property sector calls for green light
The Property Council of Australia welcomed the government’s renewed attempt to pass the HAFF.
“The HAFF is the shot in the arm the nation needs to close the housing deficit,” Property Council CEO Mike Zorbas said.
“The 30,000 new social and affordable houses that hang in the balance need to be green-lighted by all Senators as soon as possible.”
He said that beyond the HAFF, the fastest paths to new housing remain setting housing targets, creating incentives for more supply and fixing broken state planning systems.
Urban Development Institute of Australia (UDIA) president Max Shifman said the HAFF is “Australia’s opportunity to build a foundation for a unique, world-class affordable housing system that rivals the extensive government programs in other global nations like the UK, US and Europe”.
“We are facing a severe decline in rental properties with investor loans falling by 19%, rental dwelling stock pulling back by 20% and rental listing falling by 32% this year.”
