Renters & Housing Union

On the weekend just past the Australian Labor Party unveiled their “signature” housing policy for the upcoming election. If public opinion polls hold true, this policy will be the housing policy of the next government of Australia. 

Once again, the Australian Labor Party has proven it is only interested in the short term and unsuitable support of homeowners in Australia and not the renters and the property market in the next few years.

The proposed policy consists of two main components: 

1. A new wave of subsidised homes—homes exclusively for first-time buyers.
2. A government-backed guarantee on housing deposits.

Both are designed purely with the owners in mind. Despite being the most vulnerable in Australia, renters are not even mentioned in the housing policy, despite being the group most disproportionately affected by the housing crisis. The federal government have repeatedly told us that they can’t work with states on rent controls, but they can on house building schemes for homeowners?

The first proposed scheme—a government guarantee on 15% of home deposits—means that first home buyers will only need a 5%. This scheme serves solely the interests of homeowners, investors, and those who already have the financial means to participate.

By lowering the deposit requirement, the demand for housing in Australia is set to skyrocket. While this may provide a boost for current homeowners and investors, the resultant increase in prices will lead to higher rents and further inflate the already unsustainable housing market. Vulnerable individuals—those just able to scrape together the 5% deposit—will find themselves ensnared in loans and mortgage repayments they can barely afford.

Such a deposit scheme caters exclusively to middle and upper earning homeowners in Australia, condemning the vulnerable renters to spiralling increases in housing costs.  This proposal only further incentivises real estate speculation, with both homeowners and government seeking to benefit from speculated future property prices.

The second component involves a significant investment in housing, specifically aimed at “first home buyers.” This initiative is projected to cost tens of billions of dollars, yet only those who qualify as first home buyers will gain access to any housing constructed under it. 

Consequently, this policy mostly benefits those already able to afford housing, siphoning valuable resources and labour away from addressing the urgent need for rental supply. This along with the net falls in Public Housing stock across the country is pushing more and more renters into untenable positions. It starkly showcases a prioritisation of homeowners at the expense of renters. 

These policies epitomise the Labor Party’s ongoing commitment to an unsustainable housing market. When the property market inevitably collapses, the inadequate preparedness of our government will have consequences for millions of Australians.

This election cycle paints a sobering picture: the ruling parties, whether Coalition or Labor, remain utterly indifferent and apathetic about the plight of the renter.

Renters have been getting the short end of the stick for far too long. It’s time they stop begging, and start demanding. RAHU empowers them to do that.

The Renter’s And Housing Union:

• Denounces these policies as inadequate.
• Emphasize these policies purely designed to benefit owners and investors at costs of renters
• Calls for the government and parties to develop policies actually able to help renters in this country. This includes RAHU proposed policies such as longer leases, stronger renter’s rights and rent increases tied to minimum wage.
• Calls for the government to actually invest, build and maintain public housing at a federal level, and pick up where state governments have been utterly inadequate. 

Quotes attributable to RAHU Public Policy Officer William van den Wall Bake:

“The ruling party of the day has once again reaffirmed itself to an unsustainable housing market, this house of cards is unsustainable, and when it does collapse, millions of Australians will suffer.”

“More subsidies for owners won’t fix the housing crisis, we know this. This is only for the benefit of homeowners. The same money that these subsidies are being spent on would be far better spent in real public housing investment. This would provide far more relief and help to the majority of people of Australia – home owners and renters alike.”

“This policy represent a help for homeowners and investors in Australia, renters be damned”

Quotes attributable to RAHU member Alex Johann:

“This is just another example of Neo-Liberal Labor throwing renters to the wolves while keeping the never ending cycle of housing as an investment.”

“Labor is saying to renters that if you don’t have 5% now, then you will be at the mercy of whatever rent increases come your way”