The Greens will help the Albanese government pass its Help to Buy shared equity scheme for homeownership, despite failing to win any concessions from Labor in return for its support.
The Greens leader, Adam Bandt, and housing spokesperson, Max Chandler-Mather, have called a press conference on Monday afternoon at which they will announce the shift in policy.
The decision is a blow to Chandler-Mather, who successfully used negotiations in 2023 over the Housing Australia Future Fund to pressure the government to commit billions of dollars more for social and affordable housing.
The Help to Buy scheme allows the government to contribute 30% of the purchase price of a home or 40% for a new build for those who earn under the income thresholds of $90,000 for a single applicant, or $120,000 for a couple. The government share reduces the cost for the homebuyer, although it must be paid back upon sale.
In February Anthony Albanese indicated the government intended to play hardball on the bill, insisting the Greens could vote for the bill or against it without horse trading or further concessions from Labor.
At first, the Greens called on the government to reform negative gearing and capital gains tax concessions in return for their support.
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Earlier in November, the Greens substantially reduced their demands, calling instead for funding for an extra 25,000 social and affordable homes and a commitment that those whose income rises above the threshold do not need to pay back immediately.
The Greens also sought changes to the Build to Rent tax incentives bill, the fate of which is still unclear.
On Monday morning the housing minister, Clare O’Neil, rejected the Greens’ demands.
O’Neil told Radio National that “for two-and-a-half years now, the Australian Greens have done nothing but block and delay the action the government has attempted to take on housing”.
“They’ve worked with Peter Dutton to do so, and the result of that has been more homelessness, fewer homes built and fewer social and affordable homes built,” she said.
“There’s a big decision here for the Greens. Are they going to go into the next election as an ineffective party of protest or a party that works with the government on issues that are critical to Australians who are watching at home?”