Industry welcomes passing of Housing Australia Future Fund

On Tuesday, 13 September, the Senate approved the federal government’s housing bill despite opposition from the Coalition, which voted against the bill after its requested amendments were denied.

The bill still awaits further parliamentary approval before becoming law.

Originally introduced in February, it was reintroduced last month due to concerns raised by the ‘No-alition’, which includes the Coalition, One Nation, and the Greens, regarding its effectiveness.

In response to these concerns, the government increased its additional funds for social and affordable housing to $3 billion, securing the support of the Greens and crossbenchers.

However, the move garnered criticism from Liberal Senator Anne Ruston, who accused the Labor government and the Greens of making “deals done in smoke-filled rooms”.

The HAFF Bill will establish the $10 billion HAFF to finance the construction of 30,000 social and affordable homes and allocate an additional $330 million to address acute housing needs over the fund’s initial five years.

In addition, an allocated 4,000 homes for women and children affected by family and domestic violence or older women.

The government also committed to disbursing $500 million annually from 2024–25 onwards.

Senator Ruston questioned how the government would cover any shortfalls if the fund failed to generate the full $500 million.

In response, the Labor government clarified that the fund is designed to disperse a minimum of $500 million each year for social and affordable housing.

Industry welcomes housing fund

Mortgage and Finance Association of Australia (MFAA) managing director Anja Pannek welcomed the announcement considering the growing issue of housing supply across the country.

She said: “We wholeheartedly support moves to increase housing supply that will give more Australians, in particular the most vulnerable, access to safe, secure housing,” Ms Pannek said.

“Boosting housing supply must remain a priority, and the passing of this legislation is a positive step towards that, and one we welcome.

Ms Pannek also underscored the importance of involving mortgage brokers in government schemes and grants that promote home ownership, including first home buyer grants, government guarantees, and shared equity schemes.

She noted that mortgage brokers facilitate over 70 per cent of loans utilising federal schemes, emphasising their role in expanding housing access.

The Property Council of Australia’s chief executive, Mike Zorbas, welcomed the news “for new social housing and housing supply” in Australia.

“Australia now has a better chance of achieving our ambitious national target of 1.2 million homes by 2029,” Mr Zorbas said.

“Now, we must turn our attention to the unfinished business of improving our state planning systems so they can deal with the welcome influx of skilled migrants and students over the decade ahead.”

Real Estate Institute of Australia deputy president Leanne Pilkington added that she was hopeful the Greens will now back down on their requests for rent freezes and rent controls and “commonsense will prevail” moving forward.

The Housing Industry of Australia’s managing director, Jocelyn Martin, weighed in, marking the move as a “step closer” to getting on with the job of supplying Australians with the housing they need.

“The rebound in immigration, acute rental shortages and tight labour markets are fuelling demand for housing across Australia, driving rents and dwelling prices ever upwards,” Ms Martin said.

However, she cautioned that the supply commitment of 30,000 social and affordable homes “represents only 2.5 per cent” of the government’s 1.2 million homes target over the next five years starting July 2024.

“The private sector will still have to do most of the heavy lifting in terms of meeting Australia’s housing needs, and it is being constrained by policy that inflates the costs of home construction and finance,” she said.

3 housing bills pass Senate

Alongside HAFF, the National Housing Supply and Affordability Council Bill 2023 was passed in the Senate, establishing the National Housing Supply and Affordability Council as an independent advisory body.

The Treasury Laws Amendment (Housing Measures No. 1) Bill 2023 was also approved, changing the name of the National Housing Finance and Investment Corporation to Housing Australia and streamlining its functions.

The government also agreed to expedite the first statutory review of the Housing Australia Future Fund, moving it to 31 December 2026, to enhance transparency by providing an early opportunity to assess the fund’s performance and outcomes.

[Related: Housing bill reintroduced as threat of double dissolution grows]