Election 2025: Taking apart both sides’ ‘diabolical’ housing policies
Apr 15, 2025
auto_awesome
Political insiders break down the housing policies from both Labor and the Coalition, highlighting their flaws and economic viability. They examine intense election strategies, especially in the affluent Koo Yong electorate, where candidate Amelia Hamer faces unique challenges. The discussion reveals tensions between immediate voter relief and long-term fiscal responsibilities. With a notable shift in polling trends, there’s a push for tax reforms to address intergenerational inequality. Effective communication amidst political complexities is deemed crucial!
Both Labor and the Coalition's housing policies may exacerbate the affordability crisis by increasing demand without addressing supply limitations.
The local dynamics of candidate positioning, like Amelia Hamer's appeal to renters, are influencing voter trust and engagement in the election.
Deep dives
Campaign Strategies of Major Parties
The major political parties in the lead-up to the May 3 election have focused heavily on housing and tax policies during their campaign launches. The Labor party has proposed an extension of a Morrison government scheme that allows home buyers to enter the market with a 5% deposit, along with a reinstatement of a standard tax deduction for work-related expenses. Conversely, the coalition announced significant financial relief measures including a temporary halving of fuel excise and a tax offset aimed at low-income earners, essentially allowing those earning up to $144,000 to receive a rebate at the end of the financial year. Both parties aimed for traction before the holiday period, highlighting their urgency to engage voters before pre-poll voting begins.
Economic Concerns and Spending?
A key theme emerging from the election discussions centers around the sheer scale of financial commitments made by both parties, totaling approximately $105 billion. Economists have raised concerns about the sustainability of these spending promises, particularly in light of Australia's existing debt burden of nearly a trillion dollars and ongoing deficits. While the proposed tax reductions from Labor are seen as potentially less harmful than the coalition's cash handouts, critics argue that both strategies could mismanage economic incentives and budgetary health. The lack of clarity on financing these policies has resulted in skepticism from economists, suggesting that the strategies may not adequately address long-term economic viability.
Housing Policies and Market Impact
The implications of the housing policies posited by both major parties are significant, as experts argue that they could drive increased demand in a supply-constrained market. Labor's proposal promoting lower deposit requirements and the coalition's tax deductibility measures might enable more individuals to borrow and enter the housing market, potentially resulting in higher prices. Critics believe these policies are exacerbating an existing affordability crisis without addressing fundamental issues like zoning, cost of construction, and other barriers to housing supply. The broader conclusion among economists is that simply increasing demand without overcoming supply constraints will likely worsen the overall affordability situation.
Voter Sentiment and Candidate Positioning
The dynamics of the election are heavily influenced by candidate positioning and voter sentiment at the local level, as seen in electorates like Koo Yong. A particular case highlighted is Liberal candidate Amelia Hamer, who positioned herself as a renter despite owning multiple investment properties, a choice aimed at appealing to younger voters. This has sparked discussions around trust and relatability of candidates, especially in electorates where housing affordability is paramount. Political nuances, such as this perceived lack of authenticity, could substantially influence voter behavior in a tightly contested climate, suggesting that the electorate is becoming more discerning in the narratives presented by candidates.
This week, political editor Phillip Coorey, deputy editor, news, Jessica Gardner, economics editor John Kehoe, and senior writer Myriam Robin take apart Labor and the Coalition’s housing policies, discuss why tax reform is so hard and unpack the battle for Kooyong.
