Greens target landlords with big fines, Coalition looks at GST in housing fight

Landlords and real estate agents who hike rents excessively or don’t ensure properties are up to scratch would face fines of more than $78,000 under a Greens plan for a national watchdog.

The Coalition is also eyeing creative ways to approach housing, with shadow minister for home ownership Andrew Bragg flagging it is considering docking GST payments to States that fail to build enough houses.

Both opposition parties have made housing affordability and renters’ rights a central plank of their campaigns ahead of the next federal election.

The Greens want the Commonwealth to give $2.5 billion a year to the States in exchange for a two-year freeze on rents followed by a cap in increases, longer leases and national minimum standards on heating, cooling and insulation.

These would be enforced by a new National Renters Protection Authority with 1000 staff – on par with the ACCC – at a cost of $200 million a year, the Greens will announce on Monday.

Almost a third of households in Australia rent their home.

Greens housing spokesman Max Chandler-Mather said the system was “stacked against renters” and the authority would protect their rights.

“Across this country, there are 7 million renters who are powerless in their own home, unable to push back against unfair rent hikes, dodgy agents and landlords who never do basic repairs,” he said.

“What’s the point of minimum standards for renters if there’s nobody to call when the landlord or real estate breaks the rules?”

The plan would require the States to refer some of their powers to deal with issues relating to housing to the Commonwealth, a move the Greens say mirrors what happens in areas such as industrial relations and energy.

The Government has repeatedly pointed out it does not have the power to order rent freezes or caps – something most States have also ruled out – which experts say would not solve the issue of housing affordability in the longer term.

The Greens also have negative gearing and capital gains tax discounts in their sights.

But Senator Bragg said changes to tax breaks for property investors would only make a “minuscule difference” to housing supply.

He promised the Coalition would have a comprehensive supply policy ahead of the next election, saying the commonwealth had to find a way to get the States and local councils to do the heavy lifting.

The Government has committed $32 billion in housing measures, including $3 billion in bonus payments for States and Territories that exceed their home-building targets.

However, its own housing supply authority has flagged that unless new builds increase significantly, the overall target to build 1.2 million new homes by 2030 will not be met.

Senator Bragg said the approach of paying States and Territories had “completely failed”, pointing instead to the New Zealand approach of making other payments conditional on increasing housing.

“We have the vertical fiscal imbalance where we collect most of the revenue and give it to the states,” he said when asked whether the Coalition would consider docking GST payments.

“We need to be creative and find a way to hit the states hard where it hurts.

“We haven’t announced our supply policy yet, but all those things will be under consideration.”