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The Labor government has struck a deal with the Greens, agreeing to spend a further $1 billion on public and community housing in exchange for their support of the long-contested Housing Australia Future Fund Bill.
The bill, which was introduced into Parliament in February 2023, had been stalled by the Coalition, who raised concerns about the impact on inflation, and the Greens, who called for additional funding for social and affordable housing as well as a rent freeze.
After stalling in the Senate, the Labor government announced a $2 billion Social Housing Accelerator package to be apportioned between the states and territories, in hopes the additional funding would grease the wheels with the Greens.
With the minority party still calling for the federal government to introduce a national rent cap, Prime Minister Anthony Albanese squashed the notion of national rent controls but conceded to focus a meeting of the national cabinet almost entirely on housing, getting states to sing onto a plan called “A Better Deal for Renters” that encourages the development of nationally consistent policies.
Now, the Labor government has found an additional $1 billion to spend on public and community housing that will be distributed through the National Housing and Investment Finance Corporation.
The latest round of funding – bringing the additional funds for social and affordable housing up to $3 billion – has secured the Greens’ support, with the party confirming it will no longer stand in the way of the bill’s passage.
It’s been a tough seven months of negotiating for the Labor government in its effort to bring this hallmark housing policy into existence. The Housing Australia Future Fund will see the creation of a $10 billion fund that is to be leveraged on the stock market, with proceeds supporting Australian housing initiatives.
The Greens initially argued that more guaranteed funding was needed from the housing initiative, and that the future of Australia’s housing shouldn’t rely so heavily on stock market returns.
Earlier in the negotiations, the Prime Minister agreed to guarantee that $500 million would be available for housing support annually, regardless of the fund’s performance.
Failure to pass the Housing Future Fund bill by the Parliament’s next break would have given the federal government the option of dissolving Parliament, sending Aussies back to the polls.
Adam Bandt MP, leader of the Australian Greens, celebrated the announcement of the additional community housing support as a win, stating:
“Nine months ago, the government refused to guarantee a single dollar for housing, and renters barely even registered in the national debate. The Greens have secured $3 billion directly spent on housing, and renters are now a vocal social movement that won’t be ignored.”
He vowed that the government had not heard the last from the Greens on the matter of national rental controls.
“Pressure works. Labor said there was no more money for housing this year and we pushed them to find $3 billion, and although Labor backs unlimited rent rises, we’ll push them on that too.
“Renters are powerful and the Greens are the party of renters. We have won more money for housing for renters, and rent control is next,” he said.
Greens housing and homelessness spokesperson, Max Chandler-Mather, added that the government should expect a similar fight on future housing initiatives, saying the party was “putting Labor on notice for every future housing bill, the Greens are ready to stand up and fight for a freeze and cap on rent increases”.
A statement from the Prime Minister’s office also spoke of the agreement in positive terms, welcoming “new support today for the Housing Australia Future Fund”, with the government thanking “the crossbench in the House of Representatives and the Senate, including the Greens, for the constructive engagement over a number of months on this critical legislation”.
All going according to plan, the bill is set to pass by the week ending 15 September 2023.
ABOUT THE AUTHOR
Juliet Helmke
Based in Sydney, Juliet Helmke has a broad range of reporting and editorial experience across the areas of business, technology, entertainment and the arts. She was formerly Senior Editor at The New York Observer.
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