The rights of renters will soon be considered by the national cabinet but the federal government has rejected a Greens proposal to cap rent increases, saying they “don’t work.”
In the midst of a housing crisis across the country, the Greens last week successfully deferred a Labor bill to establish a Housing Australia Future Fund until October by voting with the Coalition to set up a Senate inquiry.
The $10 billion (US$6.7 billion) measure faced an uphill battle in the Senate as the Coalition and much of the crossbench took issue with the fund, which would support the construction of 30,000 new social and affordable housing properties in its first five years.
A range of concessions got key independents over the line but the Greens held out, saying protections for renters were still a major sticking point.
The minor party wants the government to initiate a national freeze or caps on rent price increases and better-directed funding for social and affordable housing.
Housing Minister Julie Collins said renters’ rights will be on the agenda when the prime minister hosts upcoming national cabinet meetings with state and territory leaders.
But the federal government doesn’t have the power to initiate a rent freeze and there’s “overwhelming evidence” that rent rise caps don’t work, she added.
“We obviously want to look at things that do work and the primary thing we’re being told is to add to supply and that’s what we’re trying to do,” she told the ABC’s Insiders program on Sunday.
“We’re doing everything we can do to turn this around, it is a very complex thing ... [and] if there was a silver bullet, we would have used it by now.
“It’s the first time in more than a decade we’ve had a federal government working with our partners in the states and territories, with other tiers of government, with the sector ... to try and turn this around.”
Collins said the Greens’ decision to block the government’s housing fund, which had the backing of affordability advocates, would fuel the housing crisis.
Having spent time in social housing as a child, Collins said the issue was very personal for her as a minister.
“I understand the struggles, I understand how difficult it is to make sure that more Australians have a safe and affordable place to call home,” she said.
But despite previously considering changes to negative gearing and capital gains tax as a solution to rising house prices, Collins said that was no longer on the government’s agenda.
“I’m focused on what’s possible, I’m focused on getting supply on the ground [and] we’re in a different position than we were,” she said.
The government has sought advice about whether the Greens’ action to delay the passage of the bill could trigger a double dissolution election.
Prime Minister Anthony Albanese said while he believed governments should serve their full term, he would wait and see what the minor party does next.
He accused the Greens of waiting to vote on the housing bill until the government agreed to rent caps, despite knowing that wasn’t going to happen.
“I’m sure that if you said to people that free rent should occur, then that would be popular,” he told Sky News Australia on Sunday.
“The job of decision makers is actually to put in place measures that make a difference,” he added.
“This isn’t a campaign opportunity, this should be a policy solution ... All state premiers and chief ministers are focused on supply and they know that’s the key to fixing affordability and to assisting people who are renting.”
