Greens threaten fight over negative gearing as members own investment portfolio’s under microscope
As the Greens gear up to fight Labor over negative gearing and investment property tax concessions, the party’s own housing portfolio is coming under scrutiny.
As the Greens and Labor gear up for another housing battle over tax breaks for property investors, pressure is mounting on the minor party to walk the talk as their own member’s housing portfolios come under the spotlight.
The Coalition have ruled out their support for the government’s Help to Buy scheme, meaning the Greens’ support is necessary to get Labor’s shared equity scheme through the senate.
But the Greens are threatening to hold the scheme to ransom, unless Labor commits to overhauling negative gearing and capital gains tax – which the government has ruled out.
Housing spokesman Max Chandler-Mather lashed the Prime Minister this week for owning investment properties, despite a number of the Griffith MP’s colleagues being in the same boat.
Labor sources say it’s hypocritical for the Greens to demand the government take action on tax cuts and concessions so many of the minor party themselves enjoy.
According to parliament’s register of interests, four of the 15 Greens members and senators own multiple properties.
Senators Mehreen Faruqi and Nick McKim own four properties each, while senator Penny Allman-Payne owns two.
Brisbane-based Ryan MP Elizabeth Watson-Brown owns three, including an investment property in Brisbane and a holiday house in Hastings Point that is used only by her, her family and friends despite the town’s vacancy rate being less than one per cent.
Under the Help to Buy scheme, which would run over four years, 10,000 first-home buyers per year would be able to co-purchase a home with the government.
Housing Australia would contribute up to 40 per cent of the value of a new home, or 30 per cent of the value of an existing home.
The Greens have been vocally critical of the bill, declaring it a “lottery” for the thousands of Australians trying to get into the housing market.
They said the government should instead focus their attention on winding down rewards for investors and use the savings to build more social and affordable homes.
As the Help to Buy moved through the lower house on Thursday, Ms Watson-Brown said the Greens would hold firm in their demand for the government to take action on the matter – saying tax breaks for investors were “unfair” when so many aspirational Australians struggled to crack into the market.
“Labor and the LNP have made it easier to buy your second home, your fifth home, than your first,” she said.
“Labor and the LNP have given big tax breaks and concessions to investment property buyers, ensuring more people want to buy houses, massively driving up the prices for everyone, and driving home ownership and affordable rentals further and further from all but the very wealthy.
“Instead of a particular property becoming someone’s family home, it becomes a speculative commodity for a wealthy investor.”
It’s understood she rents her Brisbane investment property to family, while she has owned the Hastings Point holiday home for more than 14 years.
Assistant Social Services Minister Justine Elliot, whose electorate takes in Hastings Point, said the Greens needed to “stop playing politics” and support the government’s scheme.
“We need urgent action on the housing crisis, but the Greens’ decision to delay real progress is hurting real people,” she said.
“The Greens delayed our affordable housing plan by six months. Now they’re blocking our plan to help renters into the security of home ownership.
“It’s time for the Greens to stop playing politics, and vote with Labor to get this done.”
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