Rita Panahi: Greens’ harebrained, Marxist policies incentivise irresponsibility and punish ambition and wealth creation

When it comes to tackling the rental crisis, the far Left party’s policies are akin to confronting a fire with a bucket full of gasoline.

The Greens never miss an opportunity to show how utterly unfit they are to be in parliament, let alone the unofficial coalition partners of the Anthony Albanese government.

The far Left party’s housing policies would see investors flee the market with supply throttled and rents skyrocketing further.

Of course, that is not the intention but that will nevertheless be the end result of harebrained, Marxist policies that incentivise irresponsibility and punish ambition and wealth creation.

Investors have already been leaving or avoiding the market, not just because of ten consecutive interest rate hikes but also a raft of onerous state taxes and conditions that make investing in rental properties an increasingly unattractive option.

The Greens’ housing policies would see investors flee the market. Picture: Gary Ramage

The Daniel Andrews government’s intervention in the rental market has been disastrous for renters who have experienced steep increases.

We all know of the considerable stamp duty costs of purchasing a property, but for investors there is also a land tax liability – akin to paying an annual rent on something you already own – which has soared dramatically in recent years.

For some investors the impact of land tax bracket creep has seen their bills double and triple in a matter of years, forcing them to raise rents and avoid further real estate investments.

The Andrews government has taken other measures that have seen mum and dad buyers reconsider investing in a rental property, including increasing the rights of renters to the extent that landlords have to seek permission from the Victorian Civil and Administrative Tribunal in order to tell a tenant that they cannot keep a pet on the property.

Mum and dad buyers are reconsidering investing in a rental property.

All that spells bad news for renters who are competing for a limited supply of properties and will soon have to contend with an influx of new migrants adding to demand pressures; the Albanese government is planning to welcome some 650,000 migrants over the next two years alone.

As it stands, supply of rental stock is falling sharply and is failing to meet demand. Imagine how much more grim the situation will be if the Greens get their way and rental freezes are introduced along with an increased capital gains tax burden and the removal of tax deductions. After securing just 32.58 per cent of the primary vote, Labor is keenly aware of the importance of Greens preferences, and Greens leader Adam Bandt is not shy about wielding his influence.

Speaking at the National Press club on Wednesday, Bandt did not hold back: “I want to hear less talk about missiles and more about fixing the rental and housing crisis and building an adequate number of public housing so that everyone in this country has a place to live,” he said. “There is a full blown nationwide rental crisis and it must be confronted.”

But confronting it with slashing the capital gains tax break and landlords’ interest deductions, plus forcing states to implement rent freezes is akin to confronting a fire with a bucket full of gasoline.

On Twitter, the Greens leader again took a shot at Labor: “We need to have a national conversation about renting. We all know what the problem is: rents are through the roof. The answer starts with a rent freeze. A two-year freeze on rent increases so wages can catch up,” he posted.

“During the pandemic, we had a moratorium on evictions. Some states also had a rent freeze. Labor is being dishonest when they say it’s impossible.”

The good folk of Twitter did try to school the socialist with one explaining “if you want cheaper rents, increase the supply of housing by increasing property tax breaks. Your policies will reduce the stock of properties available and make renting even harder”.

Another reminded Bandt that Greens voters are complicit in blocking supply: “We need a bigger discussion on NIMBY Greens in the inner cities of Melbourne and Sydney that block supply in the housing market.”

Alas, the Greens leader is interested in neither facts nor logic, socialists seldom are.

The Greens may promote themselves as the ‘party of renters’ but their policies, if adopted, will see rents skyrocket to new highs as landlords flee the market and supply dries up further.