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The fate of the Labor government's signature housing policy remains in doubt after the Greens were left disappointed by renting measures announced by national cabinet yesterday, but the construction industry has welcomed the move to accelerate the building of 1.2 million new homes.
Key points:
- The Greens say there is "nothing for renters" in the national cabinet announcement
- Master Builders says the $3 billion in incentives are welcome and overdue
- The opposition leader said the government would not reach its new-houses target
Greens leader Adam Bandt said a nationwide approach to limiting rent increases to once a year was already a reality for most states, and accused national cabinet of signing off "on unlimited rent increases".
"From now on, every unfair rent increase is Labor's fault," he told RN Breakfast.
"There is nothing for renters in this package, which is incredibly disappointing.
"I am really frustrated because we have bent over backwards to negotiate with the government on this and to push for action on renters and to get the government to take this rental crisis seriously."
The Greens have not supported the government's $10 billion Housing Australia Future Fund (HAFF), which has stalled in the Senate.
The fund would help pay for up to 30,000 new affordable and social homes over a five-year period, if passed, but the Greens have been pushing for a two-year rent freeze and caps on rising rents — steps that some economists have said could do more harm than good.
When asked if the Greens would revisit their position on the HAFF legislation, Mr Bandt said he would discuss that with his colleagues when parliament resumes.
Master Builders Association welcomes incentives
A target of 1 million new homes to be built over five years from July 2024 was set last year, but national cabinet increased that target by 200,000 yesterday.
It also announced $3 billion in incentive payments for states and territories that build more than their share of the 1 million homes, at $15,000 per house.
Denita Wawn, the CEO of Master Builders Australia, applauded the incentives and the focus on dismantling constraints to increase housing supply.
"We have been saying now for over five years that we needed to incentivise the state and territory governments to do something significant in moving the dial on all of those supply constraints," she said.
She said the peak construction body had proposed similar measures to the former federal government.
"It was consistently rejected on the basis that it was the responsibility of the states and territories. [We] agree with that sentiment, but unfortunately, it's meant that we now have the crisis that we have," she said.
She urged whichever party was in government to continue the incentive payments.
Opposition Leader Peter Dutton would not commit to that, saying the Coalition would announce its policy closer to the election, adding that he thought the government would fail to meet the 1.2 million houses target.
"It seems to me that this is just another figure that the prime minister has plucked out of the air," he said.
He said representatives for builders "will support any measure that the government puts forward to increase building activity, because that's a benefit to their members".
"We all want to see more houses, we all want to see more supply come online."
NSW sets new target of more than 70,000 homes a year
NSW Housing Minister Rose Jackson said her government's aspirations under the previous target of 1 million new homes was 63,000 a year, but it has now lifted that to up to 73,000 new homes a year in the state.
She said the $3 billion in incentives would help pay for vital infrastructure, such as water infrastructure, as well as roads and social infrastructure such as parks and libraries.
She added local councils struggle to get urban planners in regional centres such as Wagga Wagga, Tamworth, Dubbo and Orange.
She said if people living in Sydney's North Shore and eastern suburbs did not want high-density social housing developments in their neighbourhoods, "they need to get out of the way".
"I want people to understand how medium density and high density can actually be done well, be supported by infrastructure, can make our communities better places to live — more diverse," she said.
'Supply is only part of the answer'
Maiy Azize, the spokesperson for Everybody's Home, wanted to see the HAFF passed, but echoed the Greens' comments that national cabinet's announcement would not end unfair rent increases.
"We haven't really seen movement here to protect renters from the worst impacts of the housing crisis," she said.
"Supply is only part of the answer. We need the government to step in and do something to make the homes affordable — and the private market is not doing that by itself.
"What happens when you build and you have no plan to distribute the housing to people who need it is wealthy people use more housing. They live in smaller households and they buy second homes."
She said while 30,000 social homes would help address the shortfall, Australia needed 640,000 new social homes.
Ms Wawn said from the rental perspective, increasing rents once a year was the right thing to do and struck the right balance.
"It gives renters some certainty, but at the same time, it does not prohibit investment into the rental market," she said.
"We've got to provide assurances not just to renters, but those wishing to invest — they've got to cover their costs and of course, costs are escalating in high inflationary times."