Housing Minister cites treasury modelling on Build to Rent that does not exist, misleading the public
This morning Labor’s Housing and Homelessness Minister Clare O’Neil told ABC Radio National that “Treasury modelling for [Labor’s Build to Rent bill] tells us that we are going to have an additional 160,000 rental units online in the period of a decade”. (ABC Radio National interview)
In fact, there has been no Treasury modelling into the number of new homes to be built under the scheme, as confirmed by Treasury officials during the Senate inquiry into Build to Rent last week:
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Senator Nick McKim: How many new dwellings are going to be built for that $30 million in reduced revenue, and how does that stack up against the claim from the former minister, Ms Collins, that the changes could see an extra 150,000 rental homes built over the next decade?
Ms Bultitude (Treasury): [...] Treasury have not taken a position in our modelling in our budget estimates on the additionality of housing. Minister Collins, in quoting that number, has quoted a private sector number that has been oft quoted in material that certain stakeholders have put out. We did hear a range of feedback from different stakeholders, and I won't talk on behalf of them today because I think they've provided you with submissions and have spoken today. I think some of those have been re-estimated over time due to a range of things, including more knowledge of what's in the bill as well as other conditions in the market
Senator McKIM: To be clear, that was not based on advice from Treasury?
Ms Bultitude (Treasury): No, that was not Treasury modelling.
(Senate inquiry into Build to Rent, pg 28)
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Importantly, the Property Council of Australia also advised the hearing that the Build to Rent Bill would not lead to an increase in housing supply. They “don’t think any additional build to rent apartments would be produced over and above business as usual”. (Senate inquiry into Build to Rent, pg 8).
The figures quoted by the Minister appear to match those produced by the Property Council which was modelling a previous proposal on Build to Rent - not the government’s proposal.
There is no evidence to suggest that the government’s proposed Build to Rent will build any new homes over and above those already being built by the industry.
On 1st August, Greens spokesperson on Housing and Homelessness Max Chandler-Mather wrote to Labor’s new Housing Minister, urging her to reverse Labor’s decision to refuse to negotiate with the Greens, but the Minister has not replied. The Greens are ready to negotiate, but won't just rubber stamp bills that leave millions of renters, homeless people and mortgage holders behind.
Further background:
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Labor’s Build to Rent Bill savaged in Senate inquiry (7th August 2024)
Lines attributable to Max Chandler-Mather, Greens spokesperson on Housing and Homelessness:
“The Minister has misled the public this morning and cited treasury modelling that treasury officials last week confirmed does not exist.
“The Minister must immediately admit that there is no modelling to suggest that Labor’s disastrous ‘Build to Rent’ bill will see any new homes built. In fact what we know is that under Labor’s plan developers will pocket tax handouts to build expensive apartments they already planned to build.
“If the Minister needs to mislead the public in order to defend Labor’s failed housing plan then maybe that is a sign that they should work with the Greens to develop a plan that will actually help the millions of renters doing it tough.
“Millions are suffering as a result of Labor’s refusal to take the housing crisis seriously, but there is still time to work with the Greens to develop a plan that actually starts to tackle the scale of the crisis.
“After dumping their last housing minister I had hoped that Labor would use this as an opportunity to change direction, instead we have more of the same spin and refusal to budge on a housing plan that will make the crisis worse.””