The Bill requires the Minister to take all reasonable steps to reach new housing agreements with the States that include these rent control measures by 30 June 2024.
The bill should be supported because it aims to address the urgent housing and rental crisis affecting low-income and vulnerable populations. By freezing rent increases and capping future increases, the bill seeks to make housing more affordable for essential workers and those receiving government assistance, who currently face severe market exclusion. Limiting interest rate increases similarly provides protection against rapid cost-of-living escalations, contributing to economic stability and preventing further financial hardship for Australians [Judgment].
Additionally, this bill aligns with Australia's obligations under the International Covenant on Economic, Social and Cultural Rights to improve the standard of living and ensure housing affordability [Judgment].
The bill should be opposed because it infringes on property rights by imposing rent controls, which may discourage investment in the housing market and lead to a decrease in the quality and availability of rental properties. Rent control measures can create distortions in the housing market, potentially resulting in reduced housing supply and long-term negative economic impacts [Judgment].
Moreover, empowering the Treasurer to overrule the Reserve Bank on interest rates could undermine the independence and expertise of monetary policy decisions, which are crucial to maintaining economic stability [Judgment].
2023-06-19
Before Senate
FARUQI, Sen Mehreen; MCKIM, Sen Nick
Unspecified
Housing Policy, Social Support / Welfare, Financial Regulation