Greens call on new Housing Minister Clare O’Neil to take ‘bold action’ to fix worsening accommodation crisis

The Greens have called on new Housing Minister Clare O’Neil to resume negotiations with them and meet the moment presented to the parliament to take “bold action” to address the worsening housing crisis.

Just days after Ms O’Neil, the former home affairs minister, was sworn into her new portfolio, the minor party’s housing spokesman Max Chandler-Mather sought to draw a line in the sand by writing a letter to her, urging her to reset the relationship and work with the Greens.

In the letter, seen by The Nightly, he put to her that she was now overseeing “one of the most expensive and overheated housing and rental markets in the world”. He said she had a “historic opportunity” to help the country’s renters, first-home buyers, and mortgage holders.

The minor party became a thorn in the Government’s side during last year’s drawn-out negotiations over Labor’s Housing Australia Future Fund. The Greens eventually declared a minor victory over the final package, and have been hoping to make similar inroads on the government’s Help to Buy and Build to Rent schemes.

With the Coalition ruling out support for both Bills, the Government needs the Greens’ support if it is to pass them through the Senate.

The Build to Rent Bill is now before a senate inquiry, after an intervention from the Greens and the Coalition. The minor party has concerns but maintains it has not yet reached a final position.

However, the shared equity scheme has proven to be a major wedge between the government and the Greens.

Under the proposed Bill, which is still before the Senate, the government would loan 30 to 40 per cent of the purchase price of a new or existing home to a total of 40,000 first-home buyers across a four-year period.

The minor party, critical the policy doesn’t go far enough, is seeking to wind back negative gearing and capital gains tax concessions in a horse trade on the Bill.

Prime Minister Anthony Albanese came out swinging earlier this year when he declared Labor wouldn’t negotiate with the Greens on the legislation.

As he asked Ms O’Neil to reopen negotiations, Mr Chandler-Mather reiterated the Greens’ desire for the government to commit to phasing out the housing tax concessions; double social housing and homelessness funding to the states; increase the supply of affordable homes; and coordinate a national rent freeze and ongoing rent caps.

“Minister, your appointment in the middle of this crisis represents a historic opportunity to take bold action,” Mr Chandler-Mather wrote.

“There is broad popular support for phasing out tax handouts for investors, rent caps, and mass investment in public housing.

“I urge you to seize this opportunity to reopen negotiations with the Greens, and work towards solutions that will give some hope to the millions doing it tough.”

Ms O’Neil’s office was contacted for comment.

Many have viewed the replacement of former minister Julie Collins in favour of Ms O’Neil — widely regarded as a great communicator and negotiator — as a strategic move to take on Mr Chandler-Mather and the Greens, who have rallied the support of younger voters frustrated by ballooning housing costs.

Ms O’Neil this week denied that was why she had been moved to the portfolio, saying Mr Albanese had moved her into the role “to try to make a difference in the lives of Australians”.

She conceded the problems were complex, but said she was particularly concerned rents are “too high, rising too fast, and a whole generation of young Australians feel like home ownership is a pipe dream”.

“Housing is a life-defining issue for millions of Australians. I got into politics to make a difference in the lives of Australians, and this is a massive opportunity to do that,” she said.

“My job is to deliver, and show people that it doesn’t have to be like this. We can and will make a difference to this problem.”

Both she and Mr Albanese this week have however refused to be drawn on whether they will consider touching negative gearing or capital gains, instead arguing their focus was on increasing supply.

Under questioning earlier this week, Mr Albanese accused the Greens of not having “any solutions”, and labelled their opposition to practical housing reforms as “nonsense”.

“I’m not quite sure how you solve the housing problem if you’re opposed to increased home ownership, increased private rentals and increased public housing, but that is the position that they’ve been advancing in the Parliament,” he said.