The federal Greens will introduce a bill to federal parliament next month that would freeze rent prices across the country for two years and give the government power to stop the Reserve Bank from raising interest rates.
The Greens' proposal aims to give renters and home owners fighting spiralling costs some reprieve, and would see the federal government work with the states and territories to freeze rent increases nationwide.
The jurisdictions that agreed to implement rental freezes for two years, and cap increases at 2 per cent every two years after that, would be able to secure double the amount of Commonwealth housing funding.
Greens housing and homelessness spokesman Max Chandler-Mather said the party would seek to introduce the bill when parliament returns for the upcoming budget early next month.
"This is a national housing and rental crisis that requires national leadership, and the Greens will have a bill before the Senate this budget week that will freeze rent increases and mortgages that Labor could pass straight away," he said.
"When the energy crisis hit, Labor recalled parliaments across the country to coordinate a response, so in the middle of the worst rental crisis in Australian history, Labor must do the same for rents and coordinate a national freeze on rent increases."
The party has consistently called for a freeze in rent increases, and earlier this month vowed to block the government's $10 billion Housing Australia Future Fund unless Labor agreed to a package of measures including halting rental increases.
The federal government needs the Greens to get the housing policy through the Senate, but Prime Minister Anthony Albanese has previously described the idea of rental freezes as "absolute pixie dust".
Mr Chandler-Mather called for the government to take urgent action.
"National cabinet introduced a rental eviction moratorium during the COVID pandemic, while the Tasmanian, Victorian, South Australian and Western Australian governments all froze rents," he said.
"So when the prime minister calls a rent freeze 'pixie dust' he is either lying or alarmingly misinformed about the role of the federal government."
Federal Housing Minister Julie Collins said the best thing the government could do for the 35 per cent of Australians who were renters was to work with the states to increase the supply of housing.
"The best thing we can do for renters is work with the states and territories and local governments to work on supply, to get more homes on the ground more quickly," she told Channel Seven on Sunday.
"What we haven't done in this country in the past is build enough homes.
"What we've seen coming out of the pandemic is everyone wants more space, which is putting more pressure on the housing market."
The nation's leaders agreed to outline reforms to strengthen the rights of renters across the country at Friday's national cabinet meeting.
The ACT is currently the only jurisdiction in Australia that puts a cap on rent increases, and rental regulations across the country vary dramatically.
Mr Albanese said while he was not seeking to implement regulatory uniformity across the nation, he wanted to examine how protections could be improved.
"There are a range of measures that will be considered by state and territory governments to strengthen the system of renters' rights, there was agreement on that," he said on Friday.
"It's up to states and territories — this is within their power to determine. So I doubt whether you'll have a completely uniform system coming out.
"But what you will have is that exchange, and housing ministers working together over coming months."
Legislation would allow government to override RBA, freeze interest rates
The bill would also strengthen existing powers allowing the treasurer to overrule the independent Reserve Bank of Australia (RBA) and freeze interest rates.
The RBA earlier this month decided to keep rates on hold after 10 consecutive increases, but the cash rate target is sitting at 3.6 per cent — its highest level in 11 years.
The Reserve Bank review has recommended stripping the federal government of its power to overrule an RBA decision — a recommendation former prime minister Paul Keating has criticised, warning the government must retain the power to direct the country's economic policy.
But the Greens want those powers boosted further, with Greens treasury spokesman Nick McKim arguing it should be used to fix interest rates for the next 12 months.
"The treasurer already has the power to overrule the RBA. This power is a critical safeguard," he said.
"In a democracy, the ultimate power must reside with those who are directly responsible to the people.
"The RBA's independence should not mean that it is completely unaccountable."
Mr McKim said the bill would make it clear that the government was ultimately responsible for monetary policy.
