Help to Buy Bill Stalls in Senate as Opposition Mounts
The Labor government’s Help to Buy Bill has hit a roadblock in the Senate, with the federal opposition, Greens, and One Nation opposing the motion. The bill received 19 “yes” votes and 41 “no” votes, leading to its suspension on September 17. Senator Murray Watt expressed frustration at the extreme right and left of Australian politics joining forces to prevent young people from buying homes. He countered the Greens’ claims that the bill would only benefit a small percentage of people and make housing more expensive for others, stating that helping some people buy homes should not be hindered just because it cannot help everyone.
The Leader of the Opposition in the Senate, Simon Birmingham, criticized the Labor party for failing to convince senators of the merits of the proposed bill. He sarcastically remarked that if hot air and rhetoric could solve the housing crisis, it would have been resolved by now. Labor Senator Penny Wong criticized both the Liberal-National Coalition and the Greens for blocking the bill for almost a year, highlighting the repeated efforts made by her party to introduce it.
The Help to Buy Bill aims to establish a shared equity scheme to assist low-income individuals and families in entering the housing market. Under this scheme, the Commonwealth will contribute up to 30 percent for existing homes and 40 percent for new homes. The scheme will have 10,000 allocations per year for four years. The eligibility criteria include income thresholds of around $90,000 for a single home purchaser and $120,000 for two people. Property price caps will also be implemented based on the location of the property.
Meanwhile, the Greens’ Senator Mehreen Faruqi accused the government of trying to force the bill through without proper negotiation. She argued that the policy would worsen conditions for the majority of renters. The Greens have advocated for policies such as rent caps, freezing rent increases, and phasing out tax discounts for investors, which they believe have contributed to inflated housing prices. Liberal Senator Paul Scarr countered the idea of rent caps, citing examples from various countries where such policies have failed to address the housing problem.
The Help to Buy Bill’s suspension in the Senate reflects the ongoing debate and differing opinions on how to address the housing crisis in Australia. While the Labor government believes that shared equity schemes can provide a solution, the opposition and Greens argue for alternative measures such as rent controls. The impasse highlights the challenges of finding a comprehensive and effective approach to make housing more affordable and accessible for all Australians.