A new micro political party, the Aussie Battler Party, has launched some ridiculous housing policy proposals in a bid to win a Victorian upper-house seat in this month’s election:
The party’s founder Stuart O’Neill, a self-employed life coach [said]… his party’s policies include establishing a government-backed mortgage lender for people on low incomes and government benefits. Other ideas include freezing stamp duty increases and relaxing planning laws to make it easier for multiple properties – such as tiny homes or granny flats – to be built on one land title and rented out…
Under Mr O’Neill’s plan, the federal government would offer zero-deposit loans to Australians on long-term government welfare, such as the age or disability pension…
The Aussie Battler Party also wants to relax rules around eligibility for state first-home buyer schemes, to allow couples with one partner who has previously owned property to access stamp duty incentives or grants.
Establishing a government-backed mortgage lender for people on low incomes and government benefits would suck a whole bunch of sub-prime borrowers into the market, increase demand, and lift property prices. This would be detrimental to housing affordability.
Relaxing rules around eligibility for state first-home buyer schemes would similarly raise demand and increase house prices, also eroding housing affordability.
By contrast, relaxing planning rules would help lift supply, other things equal, but would come at the cost of increasing over-development across Melbourne.
What is more telling about the Battler Party’s so-called housing solutions is what is missing. Where is their policy to lobby the federal government to reduce immigration, which is a key driver of Melbourne’s housing problems? Where is the policy to restrict foreign buyers? Where is the policy to increase investment in public housing and improve renters rights?
I implore voters to not waste their vote on the Aussie Battler Party and instead vote for Sustainable Australia, whose policies are far more comprehensive and would not create more problems than they are trying to solve.
Disclosure: I am a member of the Sustainable Australia party.
