Housing crisis? Not for politicians
While millions struggle to afford rent, let alone own a home, Australia’s politicians couldn’t be more removed from this reality. There is no housing crisis for them.
The register of members’ interests of the 47th parliament shows just how deeply our elected officials are invested—literally—in the housing market.
Nearly 95 percent of Australia’s 227 federal politicians own property. The total collective value of their property portfolios is at least $405 million, according to property website Domain. Fifteen MPs alone own 88 properties between them. And these are the people expected to solve the housing crisis?
Take Liberal MP Andrew Wallace. His company Wallco Property Group has been involved in more than a dozen property deals, including the $1.3 million sale of a five-unit property in Bargara, Queensland. And it’s not just the Liberals cashing in. Federal Labor MP Dr Michelle Ananda-Rajah owns seven properties across multiple states. Brendan O’Connor, another Labor MP, also owns seven properties, while Louise Miller-Frost and Minister for Home Affairs Tony Burke own six each. Even the Greens, who do call for reform of property investor tax concessions, aren’t in the clear. Four out of the fifteen Greens MPs own multiple properties.
Let’s not forget Prime Minister Anthony Albanese, who’s renting out his former home in Sydney’s Marrickville for $1,350 a week while living rent free at the Lodge in Canberra. As the house has no mortgage, that’s a $70,000 annual income stream (more than Australia’s median salary). According to news.com.au, Albanese recently listed his other investment property down the road in Dulwich Hill for an asking price of $1.9 million.
These politicians are active beneficiaries of the generous tax concessions on offer to property investors—the very policies that help to keep housing unaffordable for millions of people. According to Anglicare Australia’s latest Widening the Gap report, these tax breaks cost the government budget more than is spent on welfare. More than half of these concessions flow to the wealthiest 20 percent.
Recent research by the University of New South Wales for the Australian Council of Social Services found that, far from the “mum and dad investor” image, the wealthiest 20 percent hold 82 percent of all investment property value, and own 90 times the total wealth of the poorest 20 percent. Our federal politicians sit comfortably within this cohort. The annual base salary for a federal MP is more than $233,000, and senior ministers earn well above that. The prime minister pulls in nearly $600,000 a year.
Don’t expect our property-rich MPs to solve the housing crisis any time soon. For them, the housing crisis is nothing more than a game—and they’re the winners.
