Federal housing minister Julie Collins has warned opponents of the government’s multi-billion fund to build more homes to “get out of the way” as negotiations stall on the issue.
The $10 billion (US$6.64 billion) Housing Australia Future Fund remains stuck in parliament, with both the coalition and the Greens not backing the proposal.
The fund would see 30,000 new social and affordable homes built in the next five years, but the Greens have urged more immediate action to solve the housing crisis, including a rent freeze.
Collins said the housing situation was too important for there to be roadblocks to more investment.
“I would say to Liberal and Greens senators in the Senate we took this to the last election, we’re trying to legislate it, and they should get out of the way,” she told ABC TV on May 15.
“There are too many people in Australia that are relying on those homes, and there are too many Australians that are doing it tough that need us to get on with the job.”
The Greens have urged that the $1.6 billion in funding be doubled for state and territory governments, with the money to be used as part of rent freeze measures.
Collins said talks were ongoing with jurisdictions about funding arrangements.
“We’re working as collaboratively as we can with the states and territories and local government as part of the national housing accord,” she said.
“They are lifting, and they are also doing some important work. They are investing in social and affordable housing, and if we’re all lifting and we’re all trying to add to supply, we will slowly start to turn this around.”
The comments coincide with a new report by the Business Council of Australia, which has recommended national housing targets be tied to population.
The council said a lack of supply in the housing market and not migration had fuelled issues in the sector.
The report said the targets should lead to actions state or territory governments could take to meet demand.
Under the proposal, jurisdictions that meet housing targets would get financial incentives, while those that don’t would be penalised for failing to meet them.
“This will provide a direct link, with specific incentives and penalties, between the forecast growth of the nation, which is in part controlled by the federal government, and the net additional dwelling targets set by states and territories,” the report said.
“This should take into consideration both greenfield and infill development.”
The report also recommended that the process for land rezoning and approval for new housing projects be sped up, as well as a more substantial alignment between new housing projects and infrastructure.
Business Council chief executive Jennifer Westacott said key housing issues must be addressed.
“There are simply not enough new homes being built to meet demand when housing affordability is declining,” she said.
“The new housing supply has been falling over the last half-decade. There needs to be a clear plan for building new homes and infrastructure aligned with Australia’s population growth.”
Collins said measures outlined in the council’s report to incentivise housing were already being carried out.
“We’ve already started that important work as part of the national housing accord that the treasurer, the prime minister and I have been working hard on,” she said.
Greens housing spokesman Max Chandler-Mather said while it was a favourable sign funding could be boosted to states and territories, a rent freeze was still needed.
“Labor’s housing bill doesn’t guarantee a cent in funding for public and affordable housing and does nothing for renters in the middle of the worst housing crisis we’ve seen in generations.”
