Australian housing policy becomes political flashpoint

Significance The decision by opposition parties to block two housing affordability bills in the Senate has undermined one of the Labor government’s signature policy initiatives. Meanwhile, activity in the housing sector continues to weaken, threatening Labor’s pledge to provide 1 million new homes over the next five years. Impacts Closing tax loopholes might break the Senate impasse, but it could deter some housing investment. Policy differences would make sustaining an alliance of convenience between opposition parties difficult but not impossible. A hung parliament is still the most likely election outcome, even though current opinion polls show a Labor lead.