Greens Offer Labor Billion Dollar Olive Branch on Housing Fund

People work on new housing at North Lakes in Brisbane, Australia, on June 10, 2016. Glenn Hunt/Getty Images

The Greens have held out an olive branch to the federal government over the stalled Housing Australia Future Fund (HAFF) bill offering to halve their demands and pass the bill if the Labor will take an immediate interim freeze on rent increases and provide billions in funding for public, community, and affordable housing.

The $10 billion fund (US$6.7 billion) is the federal government’s response to the lack of social and affordable housing across the country, with the government hoping the legislation will allow the building of 30,000 homes over five years.

Under the proposed legislation, the fund will stay in perpetuity, and each year, the government will use its returns to invest in housing across Australia. However, the return amount that can be withdrawn from the fund is capped at $500 million annually.

The Greens say their offer focuses on tackling the housing crisis immediately and would have the support of the country, citing the recent Guardian Essential survey that shows 60 percent of Australians polled supported freezing rental increases.

Greens leader Adam Bandt said that they were willing to shift in their stance and it was “time for Labor to do the same.”

“If Labor backs a rent freeze and guarantees real money for more housing, the Greens will pass Labor’s bill,” Bandt said.

“The Greens have shown we can negotiate with Labor and get significant outcomes for people and the climate. We strengthened the Safeguard Mechanism, we secured the Housing Electrification package, and we fast-tracked cheaper Electric Vehicles for the country.

“We’re now trying to fix the broken HAFF Bill, but Labor has to shift.”

Greens leader Adam Bandt speaks at a party room meeting at Parliament House in Canberra, Australia, on Feb. 7, 2022. AAP Image/Mick Tsikas

Greens Want to Give States and Territories Billions in Exchange for Rent Freezes

The Greens would like to see the federal government offer the states and territories an incentive fund of $1 billion (US$665 million) a year via the National Housing and Homelessness Agreement in return for imposing a two-year freeze on rent increases, ongoing rent caps and improved renters rights.

The Greens argue the funding could be spent on both purchasing rental homes exiting the National Rental Affordability Scheme (NRAS) or otherwise vacant unused housing for public housing.

They also want the government to guarantee to spend at least $2.5 billion a year on public, community, and affordable housing, effective immediately. This amount, they argue, is half of the Greens original proposal and less than one-tenth of the average annual cost of the Stage 3 tax cuts.

“Labor’s plan likely won’t see new houses delivered until after the next election, and in the meantime, the problem will get worse with NRAS homes coming out of the system,” the Greens said.

“Rather than waiting 24 months for the Fund to complete a single new home, the spend must begin this year, with some of the money directed towards immediate interventions, including purchasing affordable rental homes exiting the NRAS scheme, off-the-plan homes or otherwise vacant unused housing.”

Greens MP Chandler-Mather speaks during the Greens national campaign in Brisbane, Australia, on May 16, 2022. Dan Peled/Getty Images

Greens spokesperson for Housing and Homelessness Max Chandler-Mather said that the Greens are more than willing to negotiate, but they want Labor to understand that the federal government is leaving people behind.

“Renters need action now, not after the next election, and we need real cash on the table for public housing,” he said.

“If Labor can spend over $30 billion a year on Stage 3 tax cuts for the wealthy, they can find $3.5 billion a year to fund a rent freeze and more public and affordable housing.

Chandler-Mather said that currently, it was a good time to kick off the construction of public housing with a decline currently underway in the private construction sector, which is freeing up skills and materials.

“Labor’s plan won’t see a single home built until 2025, while it does nothing for the millions of renters about to cop massive rent increases, and certainly does nothing for the 24,000 families about to lose their affordable NRAS homes as a result of Labor’s cuts, so, of course, the Greens are pushing for action that helps people right now,” he said.

“With wall to wall Labor governments all across the mainland, there’s no reason why National Cabinet can’t agree to freeze rent increases immediately and stop the rental crisis in its tracks.”

Offer Comes after HAFF Legislation Blocked by Greens and Coalition

The offer from the Greens comes after the Greens sided with the Coalition in the Senate in May to delay the Labor government’s push to get the Housing Affordability Future Fund legislation through.

At the time, Prime Minister Anthony Albanese called out Chandler-Mather for failing to support the Housing Australia Future Fund and also running petitions to block the development of more housing supply in Brisbane.

“One of the things that we need to do is to make sure that planning keeps up. And one of the things that I find remarkable is that at the same time as the Greens are blocking additional support for social housing, they’re also running petitions of their housing spokesperson to block any development in medium density and development of more housing supply in Brisbane,” the prime minister said.

“You can’t have it both ways. What the government does is have a plan. We want to work with state and territory governments, work constructively, and that is what we are doing.”

Chandler-Mather, who holds the Queensland seat of Griffith in Brisbane, has joined community residents to oppose proposals to build new apartment buildings, including the Bulimba Barracks site.