Super-Powered Deposits or Cutting Negative Gearing? Coalition, Greens Spar on Housing Policy

A photo taken on June 16, 2024 shows an aerial view of apartment blocks located in the Sydney suburb of Mascot in Australia. David Gray/AFP via Getty Images

As the Albanese Labor government managed to finally get its Help to Buy Bill passed in the Senate, the Liberal Party and Greens continued to debate the thorny issue of home ownership at the National Press Club on Nov. 26.

The difference of opinion was on display during the debate between Michael Sukkar, the shadow housing minister, and Max Chandler-Mather, the Greens’ housing spokesperson.

Labor’s Housing Minister, Clare O'Neil, skipped the event, opting to focus on the success of the government’s Help to Buy Bill in Parliament.

The Bill establishes a shared equity scheme where the government will help pay for 30 percent of the cost of an existing home or 40 percent of a new home.

The program is aimed at eligible low- and middle-income households, but is limited to 10,000 allocations per year.

Opposition Critical of Labor’s Record So Far

Sukkar wasted no time in highlighting the worsening housing crisis under the Albanese government. He pointed to a sharp decline in new home construction under Labor, which he attributed to a lack of strategic planning.

According to Sukkar, the number of first-time homebuyers has plunged dramatically, from 171,000 in 2021 under the Coalition to just 108,000 in 2023.

The number of home completions also saw a significant drop, with only 177,000 new homes built last year, 40,000 fewer than under the previous government.

Approvals for new housing developments have also fallen, dipping to around 167,000 in the last year, compared to more than 230,000 when the Coalition was in power.

Liberal Party MP Michael Sukkar speaks during Question Time in the House of Representatives at Parliament House in Canberra, Australia on May 13, 2020. Sam Mooy/Getty Images

Meanwhile, the nation’s rent prices have skyrocketed by 23 percent, now averaging $632 a week, compared to $512 in May 2022.

Sukkar pointed out that Australian families with mortgages are now at least $25,000 worse off annually under Labor’s policies.

Despite the federal government’s ambitious pledge to build 1.2 million homes over the next five years, industry experts have warned of a shortfall of at least 400,000 homes, casting doubt on the feasibility of Labor’s plan.

Even the government’s $32 billion Homes for Australia plan has not yielded the desired results, failing to address growing demand for affordable housing.

Sukkar’s Solution: A Focus on Superannuation and Migration

Sukkar talked about the Liberal Party’s policy to allow first-time home buyers to tap their superannuation funds to help pay for deposits.

Under his plan, first-time homebuyers could access up to $50,000 of their superannuation savings to fund the purchase of a home.

He also called for measures to curb migration, including a temporary ban on foreign investors and a reduction in permanent migration numbers. Sukkar argued that these steps would help alleviate pressure on the housing market.

The Greens’ Radical Approach to Housing

Chandler-Mather, speaking on behalf of the Greens, accused both major political parties of being complicit in the “corruption” of Australia’s housing system, driven by the banking and property industries.

He criticised the Coalition and Labor for creating policies that inflated house prices and allowed property developers to profit at the expense of renters.

Central to his argument was the issue of tax benefits for property investors, such as negative gearing and the capital gains tax discount, which he argued contributed to skyrocketing house prices.

Australian Greens Leader Adam Bandt and Housing spokesperson Max Chandler-Mather speak to the media during a press conference at Parliament House in Canberra, Australia on Nov. 25, 2024. AAP Image/Lukas Coch

Chandler-Mather proposed a drastic overhaul of these policies, calling for them to be phased out entirely.

He suggested that the billions of dollars freed up from these changes should be reinvested into public housing.

Furthering his vision for a more equitable housing system, Chandler-Mather advocated for the creation of a public property developer. This government-owned entity would build affordable homes to be sold or rented at reasonable prices, bypassing the profits of private developers.

According to Chandler-Mather, this model would not only save renters an average of $319 per week, but also reduce the cost of homes for first-time buyers by up to $249,000.

Focus on Renters’ Rights

The Greens spokesperson highlighted the need for stronger tenant protections, including national rent caps, long-term leases, and the creation of a new renters’ protection authority to enforce tenancy standards.

He talked about the personal toll housing insecurity has on his generation, from the anxiety of rising rents to the challenge of securing stable, long-term housing.

Labor Celebrates Help to Buy Bill Passage

Meanwhile, O'Neil was in Parliament celebrating the passing of the government’s Help to Buy Bill.

Calling it a significant win for “aspiring homeowners on lower middle incomes right across the country,” O'Neil expressed pride in the Bill’s success, which she described as part of a long-standing Labor tradition.

She also acknowledged the work of her predecessor, Minister Julie Collins, whose groundwork paved the way for the bill’s passage.

She also praised the Greens for their support but noted their commitment came with “a modicum of interest,” but was a contrast to the Coalition’s refusal to back the Bill.

Prime Minister Anthony Albanese also reaffirmed the government’s housing agenda, touting the $32 billion Homes for Australia plan, aimed at increasing social and affordable housing supply.