The Greens Set Conditions for Support of Government's 'Help-to-Buy' Housing Initiative

The Greens party is setting strict conditions for backing the government's 'help-to-buy' housing bill, which includes a demand for limitations on negative gearing and capital gains tax concessions. The greens argue that the proposed housing scheme, intended to help first-time homebuyers by requiring only a 2 percent deposit and having the government cover up to 40 percent of a home's cost, will inflate housing prices even further. The scheme, they assert, would aid a mere 0.2 percent of eligible buyers annually, making home ownership less attainable for the majority.

Conditions for Support

Max Chandler-Mather, the Greens' housing spokesperson, has stated that the party would consider supporting the bill if the government agrees to phase out negative gearing and reduce capital gains tax benefits. They also request that the savings from these changes be invested in public housing. The rationale behind this is to level the playing field for renters, who often face stiff competition from property investors empowered by these tax concessions at house auctions.

Government's Standpoint

Despite the Greens' demands, the government has displayed hesitation in revisiting negative gearing, especially after the 2019 election loss attributed to a commitment to curtail the policy. Shadow Treasurer Angus Taylor has expressed that the Liberal Party would oppose any changes to negative gearing. Treasurer Jim Chalmers has similarly indicated that altering the negative gearing policy isn't currently under consideration, even though some independent senators have shown support for reform.

Experts from economic think tanks like the Grattan Institute have encouraged the government to re-evaluate these tax breaks not only for the housing market's health but for the potential budget benefits. Reforms could reportedly save around $7 billion a year, translating into significant financial resources that could be redirected to public amenities and services.

Housing, Policy, Reform