One Nation’s economic proposals drawn into scrutiny over central bank independence and housing supply

One Nation Treasury spokesperson Barnaby Joyce has proposed granting the Reserve Bank of Australia the power to mandate government spending and regulatory cuts, a move that critics argue would compromise the institution’s independence. Joyce, who previously served as shadow spokesperson for finance and debt reduction between December 2009 and March 2010, suggested the change would enhance the central bank’s autonomy. However, the proposal has drawn sharp criticism for potentially transferring control over public funds to unelected officials and inviting political appointments to the bank’s leadership.

Amidst the controversy surrounding the central bank, One Nation has also advanced two other economic propositions: the establishment of a publicly owned "people's bank" and the provision of fixed 30-year mortgages at 5 per cent. The people’s bank concept has historical precedent, having been recommended by six high-level economists in 2009 following the global financial crisis and supported by the Greens as a means to dismantle the oligopoly power of the big four banks.

The big four banks currently dominate the sector, generating 80 per cent of interest income from housing loans, a figure that exceeds pre-global financial crisis levels. Proponents of a public bank argue that increased competition could narrow the gap between loan rates and deposit rates, which has widened to levels not seen since before the crisis. Historical data shows the Commonwealth Bank delivered a $110 million dividend to the government in 1989–90 prior to its privatisation, suggesting state ownership can be profitable if managed without the systemic protections that have entrenched the current banking oligopoly.

The party’s mortgage proposal involves utilising the $11.5 billion Housing Australia Future Fund (Haff), which currently allocates $500 million annually to social and affordable housing. Under the One Nation plan, these funds would be redirected to provide approximately 15,600 home loans at 5 per cent, a rate significantly lower than the current average of 6.74 per cent for three-year fixed mortgages. The party has stated the loans would be capped at the fund’s total value and would not impact the budget by replacing existing Haff functions.

Critics argue the mortgage plan fails to address the core issue of housing supply and could inflate property prices by increasing buyer competition at auctions. With 120,841 first home buyer loans taken out in the past year, the proposed volume of loans represents a small fraction of demand. Questions regarding eligibility, loan caps, and whether the scheme would target new housing remain unanswered, leading Joyce to describe the proposal as a "discussion piece" rather than formal policy.