Month: June 2023

Labor has yet again done the bidding of big business and wound back its plans for tax transparency, showing who really pulls the levers in Australia, the Greens say.

“Just as they did with million dollar fines for dodgy bank executives, Labor is answering their corporate masters’ call when it comes to tax transparency,” Greens Economic Justice spokesperson Senator Nick McKim said.

“Australia could have had world leading laws on tax transparency, but those plans fall apart once big business gets on the phone to give this Government its marching orders.”

“The likes of PwC and the fossil fuel lobby have far too much say in how laws are written in this country, and it is largely thanks to their donations to the Labor and Liberal parties.”

“It is nothing less than entrenched corruption and state capture for big donors to political parties to be able to dictate the laws that will apply to them.”

The Australian Government has imposed targeted financial sanctions and travel bans on three persons involved in the downing of Malaysia Airlines Flight MH17.

Australia has been working closely with the Netherlands and European Union to coordinate sanctions on those who were convicted by the District Court of The Hague in November 2022 for their contribution to the downing of Flight MH17 and the murder of all 298 individuals on board.

Today’s sanctions target Sergey Dubinskiy and Leonid Kharchenko, who were both found guilty by the District Court of The Hague. The third convicted perpetrator Igor Girkin, was sanctioned by Australia in 2014 for supporting separatist activity in eastern Ukraine.

Australia has also sanctioned Sergey Muchkaev, a Colonel with the Russian Armed Forces who in July 2014 was the Commander of the 53rd Anti-Aircraft Missile Brigade, which supplied the Buk-TELAR that downed Flight MH17.

As either separatist leaders within the so-called ‘People’s Republic of Donetsk’ at the time of the downing of Flight MH17, or a member of the Russian Armed Forces, the three people sanctioned today actively supported actions and policies that threatened the sovereignty and territorial integrity of Ukraine.

These sanctions demonstrate the Australian Government’s ongoing commitment to hold to account those responsible for the downing of Flight MH17.

Working closely with our partners, in particular the Netherlands, Australia is steadfast in our commitment to seek truth, justice and accountability for the victims of the downing of Flight MH17. We continue to pursue all avenues available to us.

Our thoughts remain with those who lost their lives, their families and loved ones.

The Albanese Government has announced the appointment of Air Marshal Darren Goldie AM CSC as the inaugural National Cyber Security Coordinator.

Air Marshal Goldie has served his country with distinction for more than 30 years through various roles with the Royal Australian Air Force, most recently as Air Commander Australia.

As the Air Commander Australia, Air Marshal Goldie has been responsible for building capability and resilience for the Royal Australian Air Force. He has led the coordination of Defence responses to natural disasters and the COVID-19 pandemic.

Air Marshal Goldie has also held key leadership positions, including at the Department of the Prime Minister and Cabinet in 2020-21 providing strategic foreign policy advice to Government.

He will commence his term as the National Cyber Security Coordinator on 3 July 2023.

The National Cyber Security Coordinator, together with the National Office of Cyber Security, will drive forward the necessary work to ensure Australia is best positioned to respond to the opportunities and threats of the digital age.

The Coordinator will lead national cyber security policy, the coordination of responses to major cyber incidents, whole of Government cyber incident preparedness efforts and strengthening of Commonwealth cyber security capability.

The Coordinator will lead this work in collaboration with the Government’s key policy, operational and security agencies.

This builds on the Albanese Government’s commitment to deliver a 2023-2030 Australian Cyber Security Strategy and follows a Cyber Security Industry Roundtable hosted by the Prime Minister earlier this year.

The Greens have condemned the Labor party for betraying people on income support, most of whom are First Nations people, by reversing their election pledge to abolish the Cashless Debit Card.

Today, Labor and the Liberals teamed up to pass Labor’s new Income Management Reform Bill, which takes the legislative framework for the BasicsCard and applies it to the new ‘SmartCard’. The SmartCard is managed by the same company, Indue, who ran the Cashless Debit Card scheme, and is effectively the Cashless Debit Card by another name.

The Greens successfully negotiated for Labor support for amendments requiring Ministerial reports on the cost of the Indue SmartCard, reviews of the impact of the scheme by the Joint Parliamentary Committee on Human Rights, as well as oversight by the Community Affairs References Committee for any proposed expansion of compulsory income management.

While the Greens welcome the Parliament’s support in making a bad bill better, these measures were not enough to secure Greens support for this discriminatory bill.

Senator Janet Rice, Greens spokesperson for Social Services, said:

“Labor promised voters they would abolish the Cashless Debit Card. Now they’re rolling it out again, just with new branding.

“Between the Cashless Debit Card 2.0, the measly $2.85 a day increase to Jobseeker, and refusing to help renters during the worst housing crisis in generations, Labor has no business calling itself the party of the working class.

“The bills Labor are bringing to the Parliament ensure the housing crisis will get worse, abandon millions of renters to unlimited rent increases and poverty, and leave those already in poverty in dire situations.

“Labor have now gone further than the Liberals did in expanding the racist and entirely ineffective compulsory income management system. We don’t need another Conservative Party in this country.

“In the same week as securing the Voice referendum, Labor teamed up with the Coalition and PHON to pass a racist bill that overwhelmingly targets First Nations people, against the wishes of key First Nations organisations, including the Central Land Council and the Aboriginal Peak Organisations Northern Territory, that gave evidence to the bill’s inquiry. The hypocrisy is astounding.

“Despite Labor’s false claims, the bill is not a simple matter of improving technology. This is a sneaky and insidious bill that significantly expands the Minister’s power to roll out compulsory income management in new areas, and effectively allows the new Cashless Debit Card to apply nationally, despite Labor’s campaign against CDC in opposition.

“The only differences between Labor’s SmartCard and the Cashless Debit Card are its name and colour.

“Labor have betrayed their pledge to voters at the last election. Under the Labor Government, more than twenty thousand people are still trapped under compulsory income management. We need a voluntary system that genuinely supports people.

“Labor voted down the Greens amendment for a sunset clause that would have ensured an eventual end date to compulsory income management, which even the former Cashless Debit Card legislation had in place.

“While the Greens successfully negotiated with Labor to pass three amendments that ensure more transparency, accountability and Parliamentary oversight, it was not enough to ensure our support for what is ultimately a discriminatory, draconian bill that traps people in poverty.

“The Greens, advocates, academics, and people on income management will continue to pressure Labor until they keep their promises and scrap compulsory income management for good.”

Greens amendments

Amendment sheet 1966 is here, linked on this page https://www.aph.gov.au/Parliamentary_Business/Bills_LEGislation/Bills_Search_Results/Result?bId=r6989 

• Item 1 – imposes a sunset date for compulsory income management. This is based on the 18 month consultation period outlined by the Minister in a media release of September 2022.
• Item 2 – requires regular reporting on the costs of the SmartCard scheme. This reflects the Labor party’s focus in opposition on the costs of the Cashless Debit Card.
• Item 3 – requires regular review by the Parliamentary Joint Committee on Human Rights. Given the significant concerns that have been raised about human rights, this is a basic step that we think is a small step towards what’s needed.
• Item 4 – requires review by the Community Affairs Committee of the use of Ministerial powers. Given that the bill significantly expands the Ministerial power to roll out income management in new areas, we think this is a basic oversight.
• Item 5 – enables an exit clause for people at risk of harm from the card. There was an exit clause from the Cashless Debit Card, for those at risk of harm; but none in the SmartCard legislation – so we think this is a very straightforward step.

Mandated rent freezes, one of the rental crisis solutions proposed by the Australian Greens, seek to address the urgent needs of renters. The solution involves introducing an immediate two-year emergency freeze on rent, followed by the implementation of a rent cap where rent increases are capped within certain limits. 

This means that regardless of market fluctuations and rising interest rates, tenants could find solace in knowing their rent payments will remain relatively stable and stress less about their financial situation.  

“Rent increases have been getting much larger and more common,” said Dr Chris Martin, Senior Research Fellow in the City Futures Research Centre at UNSW Arts, Design & Architecture. 

How much have rents gone up? 

Research has shown that the national average of asking rents has increased by 11 per cent in the last 12 months. Renters in Sydney have seen the median average weekly rent for new tenancies soar by 20 per cent over the past year to $650 per week.  

“When properties are re-let, a new tenancy commences and 95 per cent are getting a higher rent than for the previous tenancy,” said Dr Martin.

“Most are going for at least 10 per cent more than previously let. About 75 per cent of properties with existing tenancies have recorded rent increases over the past 12 months, and about 25 per cent are getting increases of more than 10 per cent.” 

With statistics such as these, Dr Martin said a rent freeze, and a subsequent rent cap, would protect existing tenants from rents rising to similar levels.  

Dr Martin explained that significant rental increases are a crucial price signal to property owners. This should encourage the supply of new rental properties, ideally from sources outside the existing stock, such as newly constructed dwellings or currently unused and underused properties like second homes and Airbnb listings.  

“The goal is to expand the rental market by increasing available housing options.  

“That price signal is currently going into the existing stock; as landlords increase rent prices, tenants are being pushed out of their existing homes. That brings the property to the market but also means there’s another tenant looking for a lower-cost rental property or are being made homeless.  

“By regulating rent increases for existing tenants, the price signal from the new tenancy market is directed into sources of genuine new supply,” said Dr Martin. 

This approach aims to ensure that the rental market expands in a sustainable manner while simultaneously addressing the immediate needs of tenants facing displacement and housing instability.  

Rent freeze policy pitfalls  

While the rent freeze policy is designed to alleviate financial stress on renters, crucial questions remain about the impact on landlords.  

With interest rates on the rise and mortgage repayments increasing, the policy could have serious implications for homeowners.  

Dr Peter Swan, a Professor in the School of Banking & Finance at UNSW Business School, said the rental crisis would become “far worse for tenants and landlords” if the policy came into force.  

“While it is true that tenants who are not evicted may gain temporarily, tenants as a whole lose as rental accommodation is withdrawn, fewer new places are provided, and maintenance of rent-controlled housing deteriorates.   

“Rental rates rise due to restricted supply, while landlords with sitting tenants suffer. Eventually, a black market evolves with ‘protected’ tenants unable to move and with the rampant use of sizeable ‘key money’ paid by prospective new tenants.   

“The latest version of the Residential Tenancies Act 1997 in the ACT reveals that pre-existing rent control in Canberra has doubled in its severity in 2019.  It now limits rent increases to no more than 10 per cent above the increase in the rent component of the ACT Consumer Price Index (CPI). It was previously 20 per cent.   

“As a result, it has left some landlords no option but to sell their properties, leaving evicted tenants back on a tighter rental market.” 

Prof. Swan explained how another example can be seen in the Californian Tenant Protection Act of 2019, which imposed a 10 per cent cap on rental increases.   

According to a 2018 analysis by the National Bureau of Economic Research (NBER) on San Francisco legislation, rent control resulted in a 15 per cent reduction in rental supply as landlords converted their properties to exempt building types, subsequently causing a 5.1 per cent rise in rents.  

“The repercussions of these circumstances result in a significant portion of tenants being at risk of eviction and will face the challenge of re-entering an increasingly competitive rental market, where they may be required to pay, effectively, a substantial increase in rent in the form of a bribe to secure a new place.  

“Interest rates will persistently climb until we align with the rates of countries like the US, UK, and others. As a result, these escalations will lead to even higher rental prices and if restrictions were imposed on these unavoidable increases, the current inventory of rental housing will diminish even more,” said Prof. Swan.  

A possible solution: adopting other rental practices  

The rent freeze policy has both positive and negative implications, and it has prompted the need to examine the delicate balance between the needs of renters and the challenges faced by landlords.  

“The solution to the crisis lies in boosting the housing supply. However, governments and councils commonly exhibit significant reluctance when it comes to permitting new developments or streamlining bureaucratic processes plagued by excessive regulations and prolonged delays,” said Prof Swan.  

However, governments and councils often hesitate to approve new developments or streamline bureaucratic processes, which can create housing supply bottlenecks. This begs the question: should we turn to international renting practices and consider alternative methods?  

Dr Martin said: “All these variations on rent regulations should be on the table. 

“Scotland implemented a rent freeze in September 2022, and in April 2023 moved to a rent cap of 3 per cent, in most cases. For years, most Canadian provinces have had rent caps – called ‘guidelines’ there – that limits rent increases to a certain percentage rate set by the government. 

“Ireland has a system of ‘rent pressure zones’, if a local government area records increases in median rents above a certain threshold for successive quarters, a cap kicks in, currently 2 per cent, and not more than once in 12 months.”