In a move that runs counter to history and convention, the Greens will seek changes that would see interest rates capped and rents frozen.
The party will introduce legislation to strengthen the powers of the Treasurer to overrule the central bank, ending the RBA’s independence which both major parties have observed.
The bill would position the government as ultimately responsible for monetary policy and urge Treasurer Jim Chalmers to use the established powers to freeze the cash rate at no more than 3.6 per cent for 12 months.
At its last meeting this month, the RBA board decided to leave the cash rate unchanged at 3.6 per cent.
The legislation would encourage governments to stop rent increases by providing additional federal housing funding to states and territories which introduce rent controls in their own tenancy laws.
Jurisdictions which introduce a two-year rent freeze, ongoing caps at two per cent, every two years after the freeze period, and a ban on no-ground eviction would have their entitlement to housing funding from the Commonwealth double.
The government on Friday announced a suite of housing measures following a meeting of national cabinet in Brisbane.
Later this year, housing ministers will come up with a plan to strengthen renters’ rights nation-wide.
The government has been unable to secure the support it needs to pass its signature $10 billion Housing Australia Future Fund, which would build 30,000 affordable homes.
Greens housing spokesman Max Chandler-Mather said several states during the worst of the COVID-19 pandemic introduced rent controls.
“While full-time essential workers can’t afford to rent a home, the prime minister is sitting back collecting $115,000 a year from his multiple investment properties and leaving desperate renters to fend for themselves,” he said.
Greens treasury spokesman Nick McKim said renters and mortgage holders were getting “smashed” by cost of living pressures.
“Labor’s inaction on rents and interest rates is making the housing crisis worse,” Senator McKim said.
“The Greens bill is a concrete plan to provide relief for skyrocketing housing costs whether they be driven by interest rates or rents.”
-with AAP
