Greens say publicly-owned developer answer to housing crisis

The Greens have proposed phasing out negative gearing and capital gains tax discounts to fund a publicly-owned housing developer. 

In part three of The Briefing’s property policy special, Max Chandler-Mather, Greens Member for Griffith, said a government developer would build 610,000 homes over the first ten years. Rent on these houses would be capped at 25 per cent of the tenant’s income or 70 per cent of the market rate. 

“You need the government developer because they don’t care about drip feeding supply or driving up prices; what they care about is getting people into good quality homes.” 

Negative gearing would be phased out for property investors with more than one investment property while the “unfair” capital gains tax discount would be scrapped entirely. 

The Greens proposed a two year rent freeze, after which increases will be capped at two per cent. States and territories would be offered $2 billion to coordinate rent caps. 

While this might drive property investors to sell, Chandler-Mather said this wouldn’t limit overall availability of rentals.  

“It’s a good thing if homes are being sold for slightly less than they currently cost and a renter is able to get out of the rental market and become a homeowner.” 

Chandler-Mather said these proposals will help address the growing disparity between wages and house prices and allow more people to afford good-quality homes. 

Renters would also see increased protection through the proposed National Renters Protection Authority, a body that would oversee landlords and provide tenants assistance in settling disputes. 

“It’s about shifting away from a housing system that treats housing as a lucrative financial asset for investors and banks and back towards a home for people to live in and build a good life.” 

By Zack Goutzoulas, a Master of Journalism student at the University of Melbourne.

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