Australia’s ongoing housing crisis faces further delays as political deadlock stalls key legislation aimed at helping first-time home buyers and addressing the shortage of rental properties.
The center-left Labor government’s plan to assist home buyers with a shared equity scheme is now in limbo after opposition parties voted on Wednesday to defer the bill for two months. The proposed scheme would allow citizens to purchase homes with a smaller deposit, making it easier for first-time buyers to enter the market.
Another bill, focused on providing tax incentives for developers to build rental housing, also faces potential roadblocks. This proposal, intended to attract institutional investors, has drawn sharp criticism from opposition leaders who are wary of corporatising the housing market.
Senator Andrew Bragg, a vocal critic from the center-right opposition, argued that “Australians don’t want to live in a country where corporations are landlords,” referencing fears that large companies like BlackRock could dominate the rental market.
As Labor’s policies continue to be scrutinised, the Greens advocate for rent caps to help lower-income families manage the cost-of-living crisis, while the Liberal-National coalition is pushing for significant cuts to migration in response to the housing shortage.
Despite their differing ideologies, both parties united to block the government’s housing bill, further stalling efforts to address the crisis.
Housing is expected to be a key issue in the upcoming election, due by May. The Liberal-National coalition is likely to revive its “Super for Housing” policy, which would allow first-home buyers to access their pension savings (superannuation) to purchase property.
However, this policy has also drawn criticism, with some of the country’s largest pension funds warning that it could drive up house prices even further.
Veteran economist Saul Eslake, in a report commissioned by the Super Members Council, stated that the Liberal-National plan would “boost house prices,” benefiting buyers who are already able to afford homes.
“Super for housing will primarily help people who could have bought a house anyway, just to buy more expensive ones,” Eslake said.