The Government’s first round of funding for its social and affordable homes plan has been approved.
It means nearly 14,000 homes are officially in the pipeline for construction — including
1,260 homes for people fleeing domestic violence and older women facing homelessness.
However, its other key ‘Help to Buy’ housing reform is expected to fail as it’s debated in the Senate this week.
The proposal has been criticised by the Greens and the Coalition.
New homes
In 2023, the Government passed laws to set up the ‘Housing Australia Future Fund’ (HAFF) — a long-term investment program for social and affordable homes.
This week, it announced $9.2 billion worth of HAFF funding has been approved for 13,700 new homes. Around 700 of these homes will be ”ready for tenants to move in” by July 2025.
Housing Australia Chair, Carol Austin said this round of funding will give more Australians access to “affordable, safe and secure housing.”
Around 1,200 approved plans will be used as accommodation for women and children fleeing domestic violence, and older women at risk of homelessness.
Not-for-profit community housing organisations will oversee the construction and maintenance of the housing projects.
The 13,700 homes will deliver around a third of the Government’s 5-year target of 40,000 social and affordable homes.
Housing Minister Clare O’Neil claimed the project will build more homes than nine years of previous Coalition governments combined.
Coalition
Shadow Skills Minister Sussan Ley said “Australia is short of at least 90,000 skilled workers” to build the homes that have been promised.
Ley attributed this to O’Neil’s management of her previous portfolio of Home Affairs.
Ley said that as Home Affairs Minister, O’Neil failed to prioritise tradies’ visas to meet the current skills shortage in construction.
Senate hold-ups
The Government has tabled two other major housing reforms: It’s ‘Build to Rent’ and ‘Help to Buy’ schemes.
However, neither proposal has enough support to pass the Senate yet.
Build to Rent is a tax concession for developers who agree to build multi-unit buildings where the units are rented out, instead of being sold.
Help to Buy is a scheme that would see the Government contribute to the purchase of a home, in exchange for split ownership of the property.
Under the proposal, a person could pay a minimum 2% deposit to purchase a home.
The government would provide ‘equity’ worth up to 30% of the property’s value, or 40% for new builds.
Senate vote
The Government’s ‘Help to Buy’ legislation is before the Senate.
The legislation is expected to fail because it doesn’t have enough support from the Opposition or the Greens.
The Greens have called on the Government to make a series of changes to the legislation in exchange for the party’s support.
This includes reforms on tax concessions for investment property owners and more investment in public housing.
Greens leader Adam Bandt said: “Labor is refusing to negotiate with the Greens to fix the housing and rental crisis”.
The Greens also called on the Government to do more to urge state and territory governments to cap and/or freeze rent increases.
Prime Minister Anthony Albanese urged the Greens, Coalition, and Crossbenchers to “get on with it” and stop “trying to block” housing reforms.
