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Following an extensive stalemate, the Housing Australia Future Fund (HAFF) finally received its long-awaited parliamentary stamp of approval on 14 September.
At times, an inability for the Labor government to win the federal Greens’ support for legislation threaten to return Australians back to the polls. However, last week (11 September) any doubts about the bill’s progression were quashed when the Albanese government committed a further $1 billion towards public and community housing in exchange for the Greens’ support of the HAFF.
A few days later, the bill received the tick of approval from the federal Senate before passing through the House of Representatives for a second time on Thursday, 14 September. The HAFF’s swift ratification means its $10 billion fund, set to be leveraged on the stock market, can be established.
Prime Minister Anthony Albanese stated his belief that the HAFF “will be a life changing legislation that will help generations of Australians”.
At a time when housing stock is desperately needed across every corner of Australia, Mr Albanese explained the legislation will “help deliver the government’s commitment of 30,000 new social and affordable rental homes in the fund’s first five years”.
This includes 4,000 dwellings set aside for women and children impacted by family and domestic violence, and older women at risk of homelessness.
The HAFF will assist the government’s delivery of commitments to help address the nation’s housing needs, including:
- $200 million for the repair, maintenance and improvement of housing in remote Indigenous communities
- $100 million for crisis and transitional housing 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
While the HAFF has stolen the headlines, it’s important to note the passage of this bill also introduces several key legislative packages necessary to address the nation’s housing crisis, including:
- Establishing the National Housing Supply and Affordability Council.
- Rebranding the National Housing Finance and Investment Corporation (NHFIC) to ‘Housing Australia’ and providing the organisation with clearly defined responsibilities that expand the remit of the entity to assist the implementation of work undertaken by the HAFF, alongside its existing responsibilities.
- The bill also extends the duration of the government’s guarantee of securities issues by the bond aggregator.
A statement from the NHFIC, following the announcement of the bill’s passage through Parliament, explained the organisation is “liaising with stakeholders regarding any operational impacts to ensure a smooth transition to Housing Australia”.
“After five years as NHFIC, we look forward to the expanded responsibilities as Housing Australia, and continued collaboration across industry and all tiers of government to increase the supply of housing, particularly for low-income, vulnerable and at-risk Australians,” the organisation added.
While the HAFF bill has generally been met with widespread praise from multiple prominent Australian property figures, including Leanne Pilkington, deputy president of the Real Estate Institute of Australia, concerns remain about how widespread the legislation’s impacts will be felt.
Independent member for Indi, Dr Helen Haines, recently introduced the ‘Unlocking Regional Housing Bill’ private members’ bill to Parliament, with the legislation urging 30 per cent the HAFF’s funding be funnelled into regional and rural Australia.
At a time when a growing tide of Australians, particularly aged between 25 to 29, desire regional relocation, Liz Ritchie, Regional Australian Institute chief executive officer, said the funding is necessary to allow regional Australia to grow.
“Limited housing options threaten to put a handbrake on regional Australia’s population growth at a time when we badly need more people,” she said.
Ms Ritchie isn’t the only figure dubious about the bill’s ability to cure Australia’s property woes, with Jocelyn Martin, managing director at the Housing Industry Association, stating that the HAFF alone won’t drag the nation from the depths of its present housing crisis.
“It is important to recognise that the commitment to supply 30,000 social and affordable homes via the HAFF represents only 2.5 per cent of this aspirational target [of building 1.2 million homes from July 2024],” she said.
“The private sector will still have to do most of the heavy lifting in terms of meeting Australia’s housing needs,” Ms Martin explained, adding the sector “is being constrained by policy that inflates the costs of home construction and finance”.
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