The federal government has unveiled the initial funding rounds for two major housing initiatives despite encountering significant opposition in the Senate.
The initial allocation of $32 billion (US$21.5 billion) for the Housing Australia Future Fund and the National Housing Accord is set to support the construction of over 13,700 new social and affordable homes across the country.
Prime Minister Anthony Albanese made the announcement in Canberra on Sept. 16.
“We need to build more homes more quickly in more parts of the country,” he said.
Albanese said the proposal is based upon successful schemes that have operated in Western Australia for decades and have been instituted in other parts of the country.
Nearly 40 percent of these projects are anticipated to commence construction within the current financial year.
“I grew up in social housing—I know how important a roof over your head is and the opportunities it creates,” Anthony added.
However, the Albanese government expressed frustration with the Coalition and Greens for not supporting their initiative to build more houses for Australians during a time of need.
“When it comes to housing, we are building; the Coalition and the Greens have been blocking. Australia does have a housing shortage,” the prime minister said.
Greens housing spokesman Max Chandler-Mather reacted to the prime minister’s statement and called on the government to negotiate its housing bills “in good faith.”
He clarified that the Greens’ position is “a coordinated freeze and cap on rent increases.”
He also criticised two of Labor’s housing bills.
“Build to Rent will drive up rents and give tax breaks to property developers to build apartments that no one will be able to afford,” he told ABC radio.
“And the other scheme will drive up house prices for the millions of Australians and renters who won’t get access to that scheme. And neither will give light at the end of the tunnel for the single mum right now choosing between feeding her kids or paying the rent.”
Housing Minister Clare O’Neil said the Coalition’s opposition reflected its disregard for providing a solution to the housing problem.
“We want to reduce the stress of housing for Australians—the long waits on housing lists, the long queues for rentals, the out-of-reach deposit for first home buyers—we’ll reduce these issues if we build more houses, and that’s what these projects do.”
Property Groups Welcome Announcement
Housing Australia has recommended contract negotiations for 185 projects, with construction on nearly 40 percent of the 13,742 homes expected to begin within the current financial year.“This funding round will unlock $9.2 billion in investments, combining efforts from Commonwealth, State, and Territory governments, as well as private and community housing sectors,” reads a government release.
“Over the life of the programs, a continuous funding stream will support the construction of 40,000 social and affordable homes, with applications for the second round set to open within the next six months.”
Meanwhile, the Property Council of Australia has welcomed the initial funding round. Property Council Group Executive Policy and Advocacy Matthew Kandelaars described the announcement as a key step forward in delivering much-needed social and affordable housing, including for those escaping domestic and family violence.
He added that the funding for nearly 14,000 new homes would significantly impact the lives of many Australians, helping them realise their dream of owning a home.
“A wealthy and land-rich nation should not have a housing deficit, and the only way to close that gap is to build more homes. Today’s announcement is great news for housing supply in general,” Kandelaars said.
In response to Australia’s housing crisis, the opposition leader has maintained that the solution is prioritising Australians by reducing migration.
If elected in 2025, a Coalition government plans to impose a two-year ban on foreign purchases of existing homes and significantly cut the number of foreign students.
“It’s not that we’re against international students, but I think we’ve got to prioritise Australians getting into housing,” Opposition Leader Peter Dutton said earlier.
