Albanese secures state and territory support to assist renters
Anthony Albanese has secured the support of state and territory leaders to strengthen “renters’ rights” and committed an extra $2bn in the May budget for 7000 more affordable homes.
Anthony Albanese has secured the support of state and territory leaders to strengthen “renters’ rights” – opening the door to possible restrictions on rent hikes – and committed an extra $2bn in the May budget for 7000 more affordable homes.
The Prime Minister also revealed the government had commissioned an independent review of infrastructure investment, warning key projects had been underfunded, and that new proposals to increase housing supply and affordability would be delivered within six months.
Following a national cabinet meeting on Friday, Mr Albanese announced that housing ministers had been tasked with developing policy options to assist renters and were due to present their findings later this year.
He said the ministers would examine programs regulating landlord decisions on the size and frequency of rent increases, but rejected the need for uniform rules to be implemented across the country.
“Housing ministers will develop a proposal for national cabinet,” Mr Albanese said.
“What will occur over coming months is looking at the different programs that are in place.
Some of those (programs) are around the frequency of any rent increase that can occur. In at least one jurisdiction’s case, it’s also over the amount that can occur of any increase.”
The announcement was seized on by the Greens as a vindication of their push for a two-year freeze on rent increases – one of the party’s core demands to support the passage of Labor’s $10bn Housing Australia Future Fund, which is being blocked in the Senate.
Greens Leader Adam Bandt said Mr Albanese had “finally admitted the Greens are right” and speculated that Labor was weighing up a freeze on rents.
“Only weeks ago, the Prime Minister was calling a rent freeze ‘pixie dust’, but now it’s being discussed at the highest levels,” Mr Bandt said. “Labor now has no excuse for not freezing rent increases for two years and capping any rent rises thereafter.”
Condemning both the Coalition and the Greens for blocking the HAFF, Mr Albanese also announced the National Housing Finance and Investment Corporation (NHFIC) would be extended an extra $2bn in finance.
Housing Minister Julie Collins said the extra finance to the NHFIC – a commonwealth entity that aims to increase affordable housing supply – would help to deliver “up to another 7000 social and affordable homes”.
The change, lifting NHFIC’s liability cap from $5.5bn to $7.5bn, will take effect from July 1, with Ms Collins saying the funding boost would help “get more Australians into affordable rental homes sooner”.
The government also announced key changes for the fast-growing “build-to-rent” sector, where apartments in institutionally owned residential complexes are rented rather than sold.
Mr Albanese said the government would lower, from July 1, the Managed Investment Trust withholding tax rate from 30 to 15 per cent for build-to-rent housing projects. The Urban Development Institute of Australia said the 30 per cent rate had been a “major obstacle” to investment.
The Property Council of Australia said it represented a “levelling of the playing field”.
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