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The Labor government is celebrating the long-awaited Senate vote of its Housing Australia Future Fund (HAFF) bill, which found a majority vote in the upper house on 13 September.
The legislation’s passage through the Senate follows months of negotiations and has been anticipated this week after Labor cut a deal with the Greens to pass the bill in exchange for spending a further $1 billion on public and community housing.
HAFF, which was introduced into Parliament in February 2023, had initially 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 languishing 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.
Earlier this week, the Labor government committed an additional $1 billion to public and community housing that will be distributed through the National Housing Finance and Investment Corporation. It was this latest round of funding that got the Greens over the line.
Following the deal between parties, Mr Albanese and Minister for Housing Julie Collins trumpeted the gains that the bill would make for housing in Australia.
HAFF will see the creation of a $10 billion fund that is to be leveraged on the stock market, with proceeds supporting Australian housing initiatives.
It’s considered to be a primary funding source to deliver the government’s commitment of 30,000 new social and affordable rental homes in the fund’s first five years, with 4,000 of these dwellings set aside for women and children impacted by family and domestic violence or older women at risk of homelessness.
HAFF returns will also deliver the government’s other housing commitments, including:
- $200 million for the repair, maintenance and improvement of housing in remote Indigenous communities
- $100 million for crisis and transitional housing options for women and children impacted by family and domestic violence and older women at risk of homelessness
- $30 million to build housing for veterans who are experiencing homelessness or at risk of homelessness
When the bill was first introduced, the Greens argued that more guaranteed funding is needed from the housing initiative, and that the future of Australia’s housing shouldn’t rely so heavily on stock market returns.
The Prime Minister then agreed to guarantee that $500 million would be available for housing support annually, regardless of the fund’s performance.
Ahead of the bill’s passage, the Prime Minister thanked “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”.
Greens housing and homelessness spokesperson, Max Chandler-Mather, commented that the legislation was positive, but noted that it would continue to push Labor on the issue of renters’ rights.
“We are 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,” Mr Chandler Mather said.
Leaders from across the property and housing industry, meanwhile, welcomed news that the bill would become law, while also noting that this piece of legislation is only one piece of the puzzle to address the country’s housing supply crisis.
Correction: An earlier version of this article indicated that the bill had passed Parliament. It has been agreed to in the Senate as of September 13.
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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