Greens and Coalition teaming up against Labor housing plan
The Greens and the Coalition are threatening to scuttle the $10bn fund at the centre of Anthony Albanese’s flagship housing policy.
The Greens and the Coalition are threatening to scuttle the $10bn fund at the centre of Anthony Albanese’s flagship housing policy, with the rival political parties now presenting a major roadblock to the government’s legislative agenda.
Several government bills are under threat, including key manufacturing, climate change and industrial relations policies, with the government suffering its first major parliamentary defeat on Thursday when the Coalition and Greens teamed to block Labor’s new super regulations.
Labor had removed the requirement for funds to publicly disclose spending on donations and payments, but the new regime was overturned by a temporary alliance of Coalition, Greens and crossbench senators.
In a sign the Greens are taking a more hostile stand towards Mr Albanese’s agenda, the party is preparing to campaign against Labor’s $10bn Housing Australia Future Fund. The Greens are concerned its promise to build 30,000 social and affordable housing will not be enough to keep up with rising demand.
The Coalition has also revealed serious reservations about the fund, warning it could require taxpayers to spend up to $400m in interest-servicing fees, with senior opposition sources calling it a “disaster”.
Greens housing spokesman Max Chandler-Mather said the government’s policy would see the shortage of social and affordable housing continue to grow, with the nation facing a shortfall of 640,000 homes and expected to grow by 75,000 in five years.
Mr Chandler-Mather also argued that the policy will see a cut in housing funding each year, with spending by the fund on housing capped at a maximum of $500m each year.
“Labor wants to invest $10bn in the stock market through the Future Fund and only invest the returns on housing,” he said. “This isn’t a $10bn investment in housing, it’s a $10bn gamble on the stock market.
“The Greens have made their priorities clear. We want to see a housing plan that actually starts to tackle the scale of the crisis; not one that will see the shortage of public and affordable housing get worse, do nothing for renters and lock in real cuts to housing funding.”
Opposition housing spokesman Michael Sukkar said the bill contained “aspirations with no guarantees” and warned the federal government should not be borrowing billions of dollars amid surging inflation and a large deficit.
The opposition this week rejected Labor’s $15bn National Reconstruction Fund – which is another off-budget fund designed to provide loans and equity investment in key areas – over concerns it exposed taxpayers to risk, lacked transparency and “enshrined inappropriate ministerial discretion”.
Mr Sukkar warned Labor’s housing policy lacked transparency and that there was nothing in the bill to clearly guide the investment of funds.
Housing Minister Julie Collins said the fund was the “single biggest investment” in social and affordable housing in over a decade, and pledged to have constructive conversation with all parliamentarians. “It marks a turning point for housing policy in Australia,” she said.
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