Prime Minister Julia Hartley declared in a major policy address on Tuesday that "hope must be backed by legislation," unveiling a package of bills aimed at tackling Australia's housing affordability and cost-of-living pressures. Speaking at the National Press Club in Canberra, Hartley outlined three new bills to be introduced in the next parliamentary sitting.
Housing Affordability Bill
The first bill, the Housing Affordability and Supply Act, would mandate that all new developments on federal land allocate at least 30% of dwellings to affordable housing. The government estimates this could deliver up to 50,000 new affordable homes over five years. "We cannot simply hope that the market will deliver; we must legislate for fairness," Hartley said.
Cost-of-Living Relief Package
The second bill proposes a temporary reduction in the GST on essential goods, including fresh food, fuel, and electricity, from 10% to 5% for two years. Treasury modelling suggests this would save the average household $1,200 annually. The bill also includes a one-off $250 energy rebate for low-income households.
Rental Market Reforms
The third bill targets rental market reforms, including a national rent cap of 2% per annum for the next three years and stronger protections against no-grounds evictions. According to the Prime Minister, one in three Australians now rent, and many are struggling with double-digit rent increases. "Renters deserve stability, not uncertainty," she stated.
Opposition Leader Mark Latham criticised the proposals as "reckless interventionism" that would distort markets. However, the Greens and several crossbench MPs have signalled support, giving the bills a strong chance of passing.
Hartley concluded her speech by quoting former Prime Minister Gough Whitlam: "We are not just a party of hope; we are a party of program and of action." The legislative package is expected to be debated next month.
