Greens Housing spokesperson Max Chandler-Mather has joined Greens candidate for Richmond, Mandy Nolan, to unveil more details of the Greens proposed public developer, including graphic renders of apartment designs and Parliamentary Budget Office figures on cost and rent savings.
The graphic renders are of one of the first major apartments proposed to be built by the Greens public developer. The 13 story, 65 apartment development, would be built by the public developer at a site in Tweed Heads.
Chandler-Mather is spending two days campaigning in the Northern Rivers in the Federal electorate of Richmond, where the Greens only require a 1.8% increase in vote to win. The Northern Rivers has some of the least affordable housing in the country.
The updated costings from the Parliamentary Budget Office on the Public Developer show the average rent saving for a renter household who accessed the scheme would be $319 a week, or $16,600 a year - or 45% of the cost of median private market rents.
Under the Greens plan, the government owned developer would construct 610,000 homes for sale and rent over the decade, with 360,000 homes built in the first five years. 30% of the homes would be sold at just over the cost of construction, with the other 70% rented at whatever is lower of 25% of an individual’s household income or 70% of market rent. According to the PBO the average first home buyer who bought one of the public developer homes would save $249,000 on average on the cost of a home (a 31% discount compared to the median private market home).
Anyone who doesn’t already own property would be eligible to apply for a public property developer home, with priority given to those who work in the local area, have kids at local schools, or First Nations. 20% of the rentals would be allocated towards the bottom 20% of earners.
According to the PBO, taking into account operating costs, interest costs on debt and rental and sales income, the fiscal impact of this investment would be $6.4 billion over the forward estimates and $40 billion over the decade. The headline cash balance impact would be $308 billion over the decade.
By way of comparison the Federal Government spent $12 billion this year alone in tax handouts to property investors through negative gearing and the capital gains tax discount.
Lines attributable to Max Chandler-Mather MP, Greens spokesperson for Housing and Homelessness:
“These beautiful, well designed apartments, would be just one project of hundreds of thousands like it built across Australia, transforming the lives of millions of Australians for the better.
“Under the Greens, a government owned developer would build hundreds of thousands of beautifully designed homes like this, which people could rent and buy at prices they could actually afford.”
“These homes would be for teachers, nurses, retail workers, cleaners, students, pensioners - whoever needs a good quality home rented or sold at a price they could actually afford.
“A renter who moved into one of these apartments would save $319 a week in rent, because unlike a private developer, a government developer wouldn’t be trying to fleece them for extra rent just so they can make a profit.
“A first home buyer could purchase a public developer home at a 31% discount compared to the average private market home, because the public developer would sell homes at just over the cost of construction.
“This plan is fully costed, costs less than one year of government tax handouts to investors, and could be passed through parliament this year, but Labor is standing in the way and blocking the construction of hundreds of thousands of genuinely affordable, government built homes.
“By refusing to work with the Greens, Labor is blocking the construction of hundreds of thousands of good quality homes that people could actually afford to buy and rent.
“As long as Labor keeps outsourcing housing construction to profit hungry private developers who keep land and homes vacant to drive up prices, we will never fix this crisis.”
Lines attributable to Mandy Nolan, Greens candidate for Richmond:
“This is the most exciting housing plan I’ve seen in years, because it would actually deliver genuinely affordable housing. Finally!
“To solve the housing crisis we need bold ideas that are practical, achievable and beautiful. The public housing developer breaks the stranglehold the private market has on housing and delivers housing security for struggling working people and families.
“Here in Richmond we have the worst housing unaffordability in the country. Our nurses, teachers, police and emergency services workers can no longer afford to live here, leaving our essential services compromised by understaffing. Housing key workers not only helps keep our community here, it keeps us safe.
“This plan would make sure our kids could actually buy a home in the community where they grew up instead of us losing so many of our young locals and workforce because they just can’t afford to live here.
“Housing security is a game changer. You shouldn’t have to take on a million dollar mortgage for a 3 bedroom suburban dwelling in a regional area where the average wage won’t ever cover saving for the deposit or the repayments.