Political leaders unveiled their joint plan to deal with the housing crisis at a National Cabinet meeting

NATIONAL CABINET MEETING BRISBANE

Prime Minister Anthony Albanese is seen during a National Cabinet meeting with state Premiers and Territory leaders at the Commonwealth Parliament Offices in Brisbane, Wednesday, August 16, 2023. Source: AAP / DARREN ENGLAND/AAPIMAGE

The nation's political leaders have unveiled their joint plan to deal with the housing crisis at a National Cabinet meeting. The centrepiece of the plan is funding the construction of 1.2 million houses over five years but the government was a little more unclear on how and when they will address financial pressures on renters.


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TRANSCRIPT

Federal and state leaders have come together to address the pressures facing those struggling to keep a roof over their heads.

In a meeting of National Cabinet in Brisbane the issue of housing affordability and rental stress were top of the agenda.

Prime Minister Anthony Albanese says his government is focused on fixing a lack of housing supply for those in need.

 "Today we'll be discussing housing, but also discussing that in the context of cost of living pressures. The key to addressing these issues is supply and that's why we've focused our attention on supply."

The National Cabinet's ambition to build 1.2 million new homes is 200,000 more than previously planned.

To get there the Prime Minister is willing to unlock an extra 3.5 billion dollars in federal funds.

Three billion dollars for the New Home Bonus for states and territories that meet their building targets and 500 million for housing supply to connect essential services or improve planning.

But the most pressing issue - for one in three Australians is their rent.

"We spent three month trying to find something, we start increasing the price range, we see people in queues every time we go into inspections."

Andrea works in the homelessness sector and she says while times are tough - for her clients the pressures are much more severe.

"I can imagine how they feel. They have even more issues as they are facing mental health, anxiety especially because you're in a situation where you're living in a motel everyday day so it's really challenging."

The Greens have demanded a two-year nation-wide freeze on rent increases to stop what they claim are excessive price hikes from landlords in response to the current high-inflation economic climate.

Following the two year freeze, they're pushing for subsequent rent increases to be capped at two per cent every two years in order to avoid struggling renters being priced out of their homes.

This proposal has been rebuffed by the Albanese government, with the Prime Minister saying it's not a popular proposal in any jurisdiction.

"The Idea that you just have a rent freeze - there is no jurisdiction in the country that is arguing for that including the A-C-T government which has been spoken about. No one is arguing that that will make a positive difference. Indeed, we believe that will make it worse. The key to addressing these issues is supply."

National Cabinet did, however, agree to strengthen some renter protections including the development of a nationally consistent policy which will detail reasonable grounds for eviction.

They've also signalled a potential move towards limiting rent increases to once a year.

The Greens' housing spokesperson, Max Chandler-Mather, says this is nowhere near enough to address the urgent concerns of renters.

"Today the Labor party just spat in the face of the nearly 8 milion people in this country who rent and offered them basically nothing. They can polish a turd all they like but no renter is going to buy this. The next time a renter cops an unlimited rent increase or a $100 rent increase they'll know that's the Labor party. The next time they get evicted because they can't afford the rent they'll know that's the Labor party"

And the Opposition's spokesperson for housing, Michael Sukkar, has also called the policy discussed today insufficient in addressing affordability issues.

"We've seen today absolutely nothing to assist Australians trying to save for a first home. We've seen nothing for millions of Australians struggling under skyrocketing mortgage repayments and virtually nothing for renters."

Despite the political fury, the Prime Minister appears to have business, industry and a number of housing advocates on side.

But, for those waiting for an annual limit on rent increases to become a reality, they are no closer to knowing when states and territories may deliver the measure.

Mr Albanese says they are pushing these policies as quickly as they can but people will have to wait to get a clearer timeline.

"There are timelines on all of this which is as soon as we can. Different parliaments, when you're dealing with six states and two territories, they don't all meet at the same time with the same timetable. The power of the commonwealth to set rules with regard to rentals is zero. What we have the capacity to do is for states and territories to come together to discuss what they're doing, to look at best practice and to replicate best practice."





 

 

 

 

 

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