The federal government has announced $2 billion in funding for social housing to be paid to state and territory governments over the next two weeks.
Prime Minister Anthony Albanese made the surprise announcement on Sunday. The fund is said to unlock “thousands” of social housing homes, but further details on how it would operate or how it would be broken down among the states were not available on Monday morning.
Premiers and chief ministers will be entrusted with the funding, which can be spend on new developments, expanding existing developments, renovations or refurbishment of social housing homes.
“Every Australian deserves the security of a roof over their head, and my Government is taking steps to deliver more homes around the country. “This is new money, right now, for thousands of new homes and complements our ambitious housing agenda,” Prime Minister Albanese said.
The $2 billion fund brings the total investment in housing and homelessness to more than $9.5 billion for the current financial year ending 30 June.
The government is under pressure to get its $10 billion Housing Australia Future Fund passed in the Senate, which has so far attracted opposition from Greens Party Senators who claim it is insufficient to solve the country’s estimated $1.3 billion housing backlog. The bill is due to be debated in the Senate this week before parliament rises on Thursday.
The future fund will be tasked with spending $500 million to build one million new homes over five years from 2024, and the earnings from the fund will be used to build 30,000 social and affordable homes and 10,000 affordable rental homes.
It will also provide $67.5 million to states and territories to help tackle homelessness, lift the maximum rate of Commonwealth Rent Assistance to 15 per cent, establish a new National Housing Accord and invest an additional $2 billion in financing for more social and affordable rental housing through the National Housing Finance and Investment Corporation.
The $2 billion fund announced Sunday has largely been interpreted as a measure to placate The Greens to encourage them to vote for the more comprehensive $10 billion package.
Seven housing industry bodies urged The Greens in a joint statement to pass the future fund legislation in the Senate. “This is the worst housing crisis in living memory and the time has now come to pass this legislation. The new institutions it will create, such as Housing Australia and the Housing Supply Affordability Council, need to start their important work,” the statement read.
“We need a robust national response that has a significant expansion of social and affordable housing as its central pillar. We know that the current legislation on its own will not fix the housing crisis. But it does create the institutions necessary to make a start. We consider this package a floor, not a ceiling.”
Independent Australian Capital Territory senator David Pocock on Monday joined the chorus of voices urging The Greens to pass the future fund legislation.
The Greens were due to meet to discuss the housing bill early Monday morning. The Senate will first debate the Voice to Parliament legislation before considering the housing fund.