Anthony Albanese announces the most significant reforms to housing policy in a generation – here’s what it means for you

By William On Aug 16, 2023

Anthony Albanese has pledged to work with states and territories to build 1.2 million new homes over the next five years to combat the national housing crisis.

The prime minister has promised life will become easier for tenants under the new agreement, after meeting with state prime ministers before the final national cabinet before the Voice referendum on Wednesday to discuss housing.

He acknowledged that supply remains the main issue across the board, and has vowed that from July 2024 the new homes will be built in “well-situated” areas of Australia. This is 200,000 more homes than promised last year.

The National Cabinet has also agreed to work towards a ‘better deal for tenants’, which would include developing a nationally consistent policy to eliminate landless evictions and to limit rent increases to just once a year.

The cabinet will look at a gradual introduction of minimum rent standards.

The prime minister has promised life will become easier for tenants under the new deal, after meeting with state prime ministers before the final national cabinet ahead of the Voice referendum on Wednesday to discuss housing

“This is an unashamed borrowing from some of the Hawke reforms,” Albanese said at a news conference Wednesday afternoon.

As part of the reforms, careful consideration will be given to how to better manage short-stay accommodation.

The Prime Minister noted that this is an issue that affects some voters more than others.

He was flanked by all but one of the state prime ministers and prime ministers – including Labor – as he made the announcement.

Mr Albanese would not be inclined to speculate on the Greens’ reaction to his policies. The party has held its Housing Australia Future Fund for ransom in the Senate with demands of nationwide rent freezes.

Labor has stated it believes rent freezes will exacerbate the housing crisis.

“I’ve talked to negotiating with prime ministers, not small parties,” he said.

“They think you’re just on a rent freeze… there’s no jurisdiction for that. No one claims that will make a positive difference.

“We think it will only make it worse.”

Max Chandler-Mather leads the Greens’ campaign against the housing fund

States will be financially incentivized to build more than their share of the 1.2 million homes with a ‘new home bonus’.

A total of $3 billion will be spent on the construction of the new homes.

“An additional 200,000 homes at $3 billion will provide an incentive of $15,000 per additional home, on top of the million previously agreed,” Albanese said.

Particular attention will be paid to promoting medium and high density housing in areas close to existing public transport links, amenities and employment.

The group hopes new reforms will address delays in development approvals to get the ball rolling and improve community consultation processes.

Mr Albanese described the policy decisions as ‘the most important housing policy reforms in a generation’.

“My government is determined to take our responsibility because I care deeply,” he said.

“There are timelines for all of this — and that’s as soon as we can.”

The main concern of both Greens and independents was that the bill does not go far enough to ease the pressure on the exploding housing market. Pictured: People queuing for a property inspection

Mr Albanese does not rule out calling early elections in an attempt to get his housing proposal through the government.

If no agreement can be reached, the bill would have failed twice in the Senate. Mr Albanese would then be within his right to call an early election to secure the mandate of the Australian people.

Mr Albanese has repeatedly accused the Greens of turning the housing crisis into an opportunity to score political points.

“This is all about politics. And it is clear that if this legislation is passed there will be more investment in social housing. You can’t say for it and then vote against it.’

Labour’s Housing Australia Future Fund aims to build 30,000 social and affordable homes over five years, including 4,000 homes for women and children affected by domestic violence.

The main concern of both Greens and independents was that the bill does not go far enough to ease the pressure on the exploding housing market.

Why the Greens oppose Labour’s housing bill

Under the proposed policy, Labor would invest $10 billion and all proceeds – up to $500 million a year – would be used to build the new properties.

As it stands, Greens housing spokesman Max Chandler-Mather describes the bill as a “gamble on the stock market” that his party is unwilling to take, noting that the Future Fund lost 1.2 percent in 2022.

“Had Labor already invested the $10 billion, $120 million would have been lost, with no profit to build one house,” Chandler-Mather said.

According to Mr Albanese’s proposal, 20,000 social housing units would be built within the first five years of the scheme, of which 4,000 would be specifically allocated to women and children fleeing domestic violence.

Older women at risk of homelessness would also receive special attention, while 10,000 affordable housing units would be made available to frontline workers.