‘Bulldozer’ PM blasts Senate in election clash on housing and environment

Labor will challenge the Greens to end a Senate blockade on a housing policy that would help as many as 40,000 people buy their own homes, launching a high-risk attempt to target the minor party at the next election if the policy is stalled in parliament.

The move will force a decision on a Labor election promise to offer federal funds to people who cannot afford to buy a home, in a sign of the government’s confidence that voters will mark down the Greens for obstructing the scheme.

Prime Minister Anthony Albanese berated both the Coalition and the Greens on Monday.Credit: Alex Ellinghausen

A separate clash is building on a government bill to set up a regulator, Environment Protection Australia, as Labor hardens its warnings against a Greens demand for a “climate trigger” to veto big projects that add to greenhouse gas emissions.

Greens senator Sarah Hanson-Young accused Prime Minister Anthony Albanese of being a “bulldozer” like former prime minister Scott Morrison in the way the Labor PM was refusing to give ground.

Albanese moved on Monday to turn the impasse into an election test for the Greens and the Coalition, arguing that both parties were delaying help for Australians on housing and the environment.

“They need to get on with it,” Albanese declared at a press conference on Monday morning to link a series of policies – including housing, the environment and a tax revenue increase on superannuation – to the common theme of Senate obstruction.

“All of these issues, the Senate have a week where it’s just them, okay, there’s no distractions here.

“Can they get anything done? Can they get anything done this week? That’s the question. If not, I reckon Australians will question what they are doing.”

The Greens believe the government is willing to consider a way to make climate change a consideration in EPA decisions, despite warnings from business leaders that a “climate trigger” would doom major projects, cutting investment and jobs.

“I don’t support adding a trigger to that legislation,” Albanese said on Monday.

Environment Minister Tanya Plibersek has not ruled out changes from talks with the Greens but said the minor party would face a backlash if it blocked the regulator.

“I think Green voters would be disappointed if the Greens party delayed a tough new environment watchdog like the EPA, or if they tried to stop fines for serious environmental crimes going up from around $15 million to $780 million,” she said.

On housing, the Greens are holding out for cuts to tax breaks on investment properties as a key condition for their support for the Help to Buy scheme, which Labor promised at the last election as a way for people to gain help from the government to own their first home.

Albanese offered no concession on the Labor housing policy despite the Greens’ calls for more spending on public housing, a national rent freeze to be arranged with the states and the removal of tax concessions on investment properties and capital gains.

The government decided months ago to make the Senate the focus of political argument this week, suspending the House of Representatives from normal business until October 8 while keeping the upper house sitting.

The Help to Buy scheme seeks to allow the government to contribute up to 40 per cent of the purchase price of a new home, or 30 per cent for an existing home, for selected applicants.

The scheme would be open to 10,000 applicants each financial year, up to a maximum of 40,000 places, and would save buyers from having to take out lenders mortgage insurance.

The policy aims to help first home buyers with income of less than $90,000 for individuals and $120,000 for couples. It would cost taxpayers $324.6 million over four years, but it can only start operating after states and territories pass laws to support the federal law.

Greens leader Adam Bandt said the scheme would not help 99 per cent of renters.

“You’re going to end up with a very small number of people potentially turning up to an auction with a bit of extra money in their pocket, competing against everyone else, including investors, who will have the ability to continue to push up house prices,” he said.

Greens leader Adam Bandt (right) and senator Sarah Hanson-Young.Credit: Alex Ellinghausen

Independent senators David Pocock and Jacqui Lambie have not made negative gearing a reason for opposing the Help to Buy scheme, which they appear likely to support.

Opposition Leader Peter Dutton ruled out changing negative gearing in February by saying “no” when asked if he saw any need to curb the practice despite support for the change within the Coalition when it held government.

Treasury said in February that rental property deductions cost $24 billion last financial year, with about two-thirds of the benefits going to individuals in the top 30 per cent of taxable income.

About 1.1 million people, or half the total number of people with rental deductions, had a rental loss last year, which is the definition of negative gearing. These losses added up to $7.8 billion and provided a tax benefit of $2.7 billion to those taxpayers.

Cut through the noise of federal politics with news, views and expert analysis. Subscribers can sign up to our weekly Inside Politics newsletter.