Key Points
- Letting first home buyers buy properties with smaller deposits will not be a “silver bullet”, Clare O’Neil has said.
- “A generations-long housing crisis” has made improving affordability a serious challenge, the housing minister said.
- The Greens denied that their delay in supporting the two housing bills had kept first-time buyers out of the market.
Plans to allow first home buyers to purchase a property with a lower deposit will not be a silver bullet, the housing minister has admitted, as Federal Parliament prepares to pass the reforms.
Labor’s Help to Buy and Build to Rent schemes are set to become law after the Greens agreed to take the proposals through Parliament following months of debate.
The Help to Buy scheme – which was passed by the Senate on Tuesday – is an equity sharing scheme which will allow 10,000 first home buyers each year to purchase a home with a Government contribution . It will now go back to the Lower House to be approved without discussion.
The Build to Rent plan is also expected to be passed by Thursday, when Parliament adjourns for the final time this year, but Labor still needs the support of three independent senators to get it over the line. arrival.
Housing Minister Clare O’Neil welcomed the end of the political deadlock over reforms, but said the laws would not immediately solve the sector’s problems.
“It’s not a silver bullet, and it was never meant to be,” she told Nine’s Today show on Tuesday.
“The truth is that we are experiencing a housing crisis in our country that has lasted for more than 30 years and is forcing our government to do many things differently.
“We’re trying to build a lot more housing in our country. We’re trying to get better deals for renters. We’re trying to get more Australians into home ownership. It’s a large and complex program, and It will take some time.”
O’Neil said Monday she was “glad the Greens have finally seen the light” and supported the bills, but blamed the party for causing “costly” delays.
“If this bill had passed when it was first presented to Parliament a year ago, 10,000 people would have owned their homes, which is not the case today. And the reason is Adam Bandt and his reluctance to work with the government on this housing project is important,” O’Neil told reporters Monday.
“We got closer”
Labor says its Help to Buy scheme will ultimately support 40,000 eligible buyers with a net contribution of up to 40 per cent for new homes, with a deposit as low as 2 per cent.
The Build to Rent program aims to incentivize developers to build 100% rental housing by offering tax breaks and commits at least 10 percent of the units to affordable housing.
The Greens had previously voted with the Coalition for citing fears it would further worsen the housing crisis.
Greens leader Adam Bandt denied his party’s delay in agreeing to the two housing bills had prevented first-time buyers from entering the market.
“Over the last two months, we’ve been pushing them to go further and do what’s necessary to actually address the housing crisis. They said no,” he said Tuesday morning on ABC .
“The question people are going to ask is: with all the laws the government has passed, why is it that we still face a housing crisis in this country?”
Earlier, Bandt said they had given the government a “golden opportunity” to resolve the housing crisis and were close to reaching an agreement.
“Now this housing crisis continues to get worse, fueled by tax cuts … and skyrocketing rents that are pushing people to the brink,” he told reporters. Monday afternoon.
“The Greens were hoping… that we would get Labor to change its position on unfair tax allocations, such as negative leverage and capital gains tax, which tilt the scales against the former home buyers.
“We got closer, we got to the point where they were considering changes in negative gearing reforms in this country.”
Chandler-Mather proposed new position, Bandt says
Bandt also revealed that the party’s housing spokesperson, Max Chandler-Mather, had proposed reviewing both bills, a suggestion the party “adopted unanimously”.
Chandler-Mather said it was a “tragedy” that the government had chosen to fight with the Greens instead of “doing something meaningful to solve the housing crisis”.
“Just a few weeks ago we saw changes to labor costs, tax allowances to property investors, a negative gearing effect and a reduction in capital gains tax,” he declared.
“We were moments away from the most positive and significant changes to housing policy in this country in generations, which would have helped hundreds of thousands of renters, but the Prime Minister blinked, and it’s devastating for many people in this country.”
The Greens had expressed concern that the Help to Buy Bill would drive up house prices, arguing it would give extra money to first home buyers who would ultimately be outbid by wealthier people.
In the 2022 elections, the Greens also proposed an equity sharing system. However, this was part of a broader policy to create a public housing developer responsible for building more affordable housing.
The small party continues to advocate for the removal of requesting that the revenue saved be reserved for public housing. He also advocates for a freeze and capping of rents.
Chandler-Mather said the Greens had now helped push through every element of Labor’s housing program and it was up to voters to decide whether the government’s plan helped ease the crisis.
