Australian PM Rules Out Early Election Amid Deadlock Over Social Housing Fund

Australian Prime Minister Anthony Albanese speaks during a press conference in Wellington, New Zealand, on July 26, 2023. Hagen Hopkins/Getty Images

Australian Prime Minister Anthony Albanese has confirmed his government will not push for a double dissolution of Parliament amid an ongoing dispute over a housing bill.

As Parliament returns on July 31, the federal Labor government pledges to reintroduce its $10 billion housing fund legislation to the lower house, with a vote to be held in October.

The ambitious bill is an attempt to address the lack of social and affordable housing across the country by establishing a perpetual fund whose returns will be used to build new social housing every year.

Labor hoped to build around 30,000 affordable homes over the next five years using the fund. However, it failed to pass the upper house in May due to a lack of support from the Opposition and the left-wing Greens.

The Labor government has attempted to win over the Greens’ support. However, negotiations hit the wall after the government refused to give in to the demands for a national rent freeze and even more social housing funding.

Under Australia’s Constitution, if a piece of legislation fails to pass the Parliament twice within three months, the government has the option to dissolve both houses to pave the way for an early federal election—earlier than the original scheduled time of 2025.

Prime Minister Rejects Early Election

In an interview with ABC Radio, the prime minister rejected the idea of calling a double dissolution in October.

“There certainly won’t be an election in October,” he said.

“I'd rather not have it. But of course, [when] a double dissolution triggers, what that does is it doesn’t necessarily provide for an early election. It could go into 2025.”

Mr. Albanese also noted that he did not want to play politics and wanted to have the policy pass the Senate.

In addition, the prime minister called the Greens’ demand for a national rent freeze “absurd,” saying the federal government has no control over states and territories.

“What they’re asking for at the national level is for me to negotiate on behalf of eight states and territories, and that’s just, quite frankly, absurd,” he said, adding that states and territories often have different circumstances and policy responses.

A general view of public housing towers is seen in Sydney, Australia, on Sept. 16, 2021. Lisa Maree Williams/Getty Images

Regarding the Greens’ demand for more funding for social housing, Mr. Albanese said the government had already set aside $2 billion (US$1.33 billion) to invest in social housing in June, which was $1 billion more than what the Greens asked for.

He then criticised the Greens for playing politics by delaying the bill.

“You can’t say you’re in favour of it, and then vote against it. Every day of delay is a day in which there is less social housing.” Mr. Albanese said.

“This is opposition for its own sake. It is purity that is getting in the way of a practical change that they say is good policy. And I find it just extraordinary.”

The Greens’ Response

Following the prime minister’s comments, Greens’ housing spokesman Max Chandler-Mather said his party was willing to resolve the deadlock to pass the legislation.

“The threat of a double dissolution election is to distract from the fact they’re trying to lock in a housing plan that will see the housing crisis get much, much worse,” he told reporters.

“Our ideal outcome is passing a plan as soon as possible that includes locking in more funding for public and affordable housing and a plan for renters.”

Acting Greens leader Mehreen Faruqi said Labor’s dissolution threat was a desperate move and called for the prime minister to show leadership in the negotiation.

“This intrigue and speculation the prime minister is creating shows Labor is all about playing political games and not actually addressing a very real problem that millions of Australians are facing,” she told ABC radio.

Crossbench Senator Jacqui Lambie, who supported the legislation, criticised the Greens’ behaviour, calling it “the most shameful thing” she had seen from the party in the past 10 years.

“There are plenty of homeless people out there. If you really want to negotiate, how about you go out and talk to the people who are living in their tents,” she told Sky News.

Meanwhile, Shadow Minister for Housing and Homelessness Michael Sukkar confirmed that the Coalition would not support the legislation.