Max Chandler-Mather softens stance, potentially clearing path for Labour’s stalled housing bill ahead of looming election

The Greens have stepped back from their hardline demand for a national rent freeze, potentially breaking the deadlock that has stalled Labor’s housing bill in the Senate. Max Chandler-Mather, the Greens’ housing spokesman, signalled a willingness to negotiate on key issues, including a cap on rent increases instead of a freeze, in exchange for increased investment in public housing.

The shift comes as the federal government, led by Prime Minister Anthony Albanese, prepares to reintroduce the bill, which aims to assist 40,000 low-income homebuyers and support the construction of long-term rental apartments. The bill, a centrepiece of Labor’s agenda, has faced months of opposition from both the Greens and the Coalition, preventing its passage through parliament.

Chandler-Mather told ABC Radio Melbourne that while a rent freeze had been a major policy goal, the Greens were open to compromise. “We don’t need a freeze on rent increases like we’ve said … we could negotiate on some sort of cap to limit the amount rents go up,” he said. He also expressed interest in securing more public housing investment from the government, marking a potential breakthrough in the negotiations.

The Greens had previously insisted on a set of ambitious demands in exchange for their support, including the phasing out of negative gearing and capital gains tax concessions, and the creation of a taxpayer-owned construction company to build public housing. However, this softened stance raises the possibility of a similar deal to last year’s arrangement, where the Greens backed Labor’s $10 billion Housing Australia Future Fund in exchange for a $2 billion public housing boost.

Labor Housing Minister Clare O’Neil criticized the Greens’ previous opposition, accusing them of playing politics rather than supporting practical solutions for Australians struggling with the housing crisis. She added that the government’s proposed measures would make a significant difference, particularly for low-income homebuyers, offering them access to zero-interest government loans.

Despite Chandler-Mather’s softened rhetoric, he remains critical of the government’s current approach, arguing that economists, including Saul Eslake, have dismissed the housing bill’s initiatives as ineffective. “Almost every economist has said these schemes are dumb,” Chandler-Mather remarked, amending his previous statement that “every economist” shared this view.

Labor has, in recent weeks, turned the political heat on the Greens, accusing them of siding with the Coalition to block housing reforms and labelling the opposition parties the “no-alition.” Senior Labor figures are reportedly comfortable with this narrative, anticipating it could benefit them in an upcoming election likely to focus on cost of living and housing affordability.

While the government has floated the possibility of a double dissolution election should the housing bill fail to pass, that scenario appears unlikely, given an election is expected by May 2025.

The softened stance by the Greens may pave the way for a compromise that would allow Labor to pass one of its flagship policies before the next election, providing a potential win on an issue that is likely to be central to the upcoming campaign. However, the details of any final agreement, particularly around rent caps and public housing investment, remain to be negotiated.