The Greens Will Propose a Bill to Freeze Rents & Interest Rates

Most capital cities have seen double-digit rent increases over the past 12 months.

It’s hard not to notice how expensive everything has become during this cost-of-living crisis we’re in right now.

I can’t even eat without thinking about how much my fave snacks cost – shopping for groceries suck enough as it is, let alone the cost increasing by 8% year on year according to the Australian Bureau of Statistics.

SBS reports that most capital cities have seen double-digit rent increases over the past 12 months.

According to Nine News, we are now one of the “top five countries across the globe searching for ‘interest rates’ and ‘recession’”, as well as having the search term “savings” reach an all-time high in April.

Back in August, the federal Greens called for a ‘nationwide two-year freeze on rent increases’ in order to take the pressure off tenants.

In a recent update, The Guardian reported last weekend that the Greens have planned to introduce a bill to propose the freeze when parliament returns for the upcoming budget happening this month.

The proposed bill will also give the government power to stop the Reserve Bank from raising interest rates, all in an effort to relieve financial pressures off renters and homeowners.

In April, the Greens vowed to block the government’s $10 billion Housing Australia Future Fund unless Labor agrees to “a package of measures including halting rental increases”.

“National cabinet introduced a rental eviction moratorium during the COVID pandemic, while the Tasmanian, Victorian, South Australian and Western Australian governments all froze rents,” said Greens housing and homelessness spokesperson Max Chandler-Mather.

Under the Greens' proposal, states that adopt a 2 year freeze on rent increases, cap rent increases at 2% every 2 years after that, & end no grounds evictions, will receive double their existing federal housing funding. We will also strengthen the Gov's power to overrule the RBA

— Max Chandler-Mather (@MChandlerMather) April 29, 2023

The Prime Minister has described the idea of rental freezes as “absolute pixie dust”, but Max says that Albo is “either lying or alarmingly misinformed about the role of the federal government”.

The bill would make treasury powers even stronger, with the capacity to overrule the Reserve Bank of Australia (RBA) and freeze interest rates.

Of course, the RBA isn’t particularly keen about this and has recommended removing the federal government’s power to overrule an RBA decision.

However, Greens treasury spokesperson Nick McKim says that strengthening these powers “should be used to fix interest rates for the next 12 months”, stating “in a democracy, the ultimate power must reside with those who are directly responsible to the people”.