Greens to block key housing policy

The Greens will vote against a key government housing package in parliament this week, raising pressure on Jim Chalmers to break another election promise.

Leader of the Australian Greens Adam Bandt during question time at Parliament House in Canberra. Picture: NCA NewsWire / Martin Ollman

The Greens will vote against a key government housing package in parliament this week, raising pressure on Jim Chalmers to break another election promise on tax and clamp down on negative gearing.

With Labor’s proposed help-to-buy legislation before the lower house, Greens leader Adam Bandt on Monday revealed the minor party’s position as he doubled down on calls for the government to abolish negative gearing, cap rent increases and build more public housing.

Mr Bandt said Labor’s public refusal to negotiate on its bill was similar to its approach to the Housing Australia Future Fund, where the Greens were ultimately able to secure an additional $3bn for public and community housing.

“The Greens are fighting for renters and first-home buyers. Labor’s fighting for wealthy property investors,” he said.

“Unless Labor comes to the table on negative gearing and capital gains tax discounts, capping rents and building public housing, the Greens will vote against Labor’s housing lottery bill in the House … and reserve our position in the Senate.”

The government’s scheme aims to help 10,000 prospective buyers a year by taking equity of 30 per cent (for an existing build) or 40 per cent (of a new build) in their homes, meaning smaller deposits and loans for the owner’s share. With the Coalition opposed to the bill, the government will need the support of the Greens plus two crossbenchers to get it through the upper house, ramping up pressure on the Treasurer to revive crackdowns on negative gearing.

Tasmanian senator Jacqui Lambie told The Australian she supported anything that would help young people get into the housing market but flagged concern the bill could drive up prices.

ACT independent senator David Pocock is supportive of the bill and said he was disappointed in the Greens and Coalition for blocking it in the middle of a housing crisis.

Senator Pocock called for the scheme to be expanded beyond the 10,000-applicant cap proposed.

Housing Minister Julie Collins on Monday accused the Coalition of standing in the way of more Australians getting into the housing market.

“They are very noisy over there. Of course, they were very noisy opposing the Housing Australia Future Fund, which will actually build homes for Australians that need it. And of course, we know they’re going to oppose our help-to-buy scheme, which would get more Australians into home ownership,” she said. “They claim they support home ownership, but they’re voting against more homes for Australians.

During debate in the lower house on Monday, independent MP Allegra Spender called on the government to abolish stamp duty.