Key Points
- The federal budget allocated $350 million to build up to 20,000 affordable homes over five years.
- It is part of the government's larger plan for one million "well-located" homes by the end of the decade.
Australia's peak body for low-income households has welcomed Labor's $350 million plan to boost affordable homes, despite the Greens labelling it "a complete joke" and a "con job".
The Albanese government will spend that money on up to 20,000 affordable homes, co-investing with super funds and institutional investors and working with the states and territories.
A Housing Australia Future Fund would provide a further 30,000 social and affordable homes over five years.
It's part of the government's larger plan to build one million "well-located" homes by the end of the decade.
Community Housing Industry Association CEO Wendy Hayhurst said the policy announcement is the most significant announcement for the sector in more than a decade.
"Australian housing is in crisis and requires a bold, robust response. This initiative is a huge stride forward," Ms Hayhurst said.
"The Commonwealth is not only investing a substantial sum, it is also spurring the states and institutional investors to get involved while helping coordinate the effort. This gives community housing providers confidence and certainty and will enable the expansion of the sector to meet the housing needs of lower income Australians."
National Shelter chief executive Emma Greenhalgh welcomed the plan as "heartening" and said more must be done to back those doing it tough.
"The government must ensure the one million homes that will be delivered will help those on the lowest incomes and those experiencing housing difficulties," she said.
"Being able to secure housing that people can afford is vital to maintaining the health and wellbeing of individuals and communities.
"It's disappointing there has been no review or increase to Commonwealth Rent Assistance or income support payments, when we know housing is unaffordable right now."
Unions also welcomed the accord, saying the injection would help ease upwards pressure on house prices and rent.
The Australian Council of Trade Unions says the use of superannuation funds to leverage private investment would create greater returns for their customers.
Assistant secretary Scott Connolly said unions would continue to fight to ensure the investment stemming from the accord helps provide safe and secure construction jobs as well.
But Greens housing spokesperson Max Chandler-Mather pointed out the private sector had already built a million homes in the past five years.
"These homes would have been built anyway," he said.
"The housing accord looks like a complete con job. Planning deregulation and handouts to the private sector to build housing won't fix the housing crisis.
"The treasurer couldn't even bring himself to call them affordable, instead calling them 'well-located homes'."
