Greens Reverse Course, Paving Way for Australia’s Housing Legislation

Australia’s government is poised to pass key elements of its housing policy after the Greens party agreed to support the legislation, marking a significant shift in the political landscape, Bloomberg reports.

The decision follows a series of electoral setbacks for the Greens and comes amidst a severe national housing crisis.

Prime Minister Anthony Albanese’s Labor government introduced two crucial bills aimed at addressing the crisis: a plan to stimulate the construction of build-to-rent properties and a shared equity scheme designed to assist lower-income earners in purchasing homes with smaller deposits.

Greens leader Adam Bandt announced the party’s support on Monday, acknowledging that while they had pushed for further concessions from the government, “we couldn’t get there this time.” The Greens had initially demanded substantial increases in public housing funding and the elimination of tax breaks for property investors in exchange for their support.

Australia is grappling with skyrocketing house prices and rental costs, driven by a supply shortage and a post-pandemic surge in migration. The situation is further exacerbated by 13-year-high interest rates, offering little relief to mortgage holders, unlike some other countries easing their monetary policies. A recent Australian Financial Review poll highlighted housing as the second most pressing concern for Australian voters.

The Greens, holding 11 crucial Senate seats, ultimately compromised after disappointing election results in Queensland and the Australian Capital Territory. The government’s bills will now proceed to the Senate this week for final approval. This legislative push is particularly significant as it’s the last parliamentary session of the year and could be the final one before the next national election, due by May.