Greens hold keys to success for affordable housing fund

Paul Osborne and Maeve Bannister | February 14, 2023

A multi-billion dollar plan to ease the property squeeze and build affordable homes may need renovation to get the package through parliament.

Pressure is mounting on the Albanese government to rejig its signature $10 billion housing fund as the Greens become key to its endorsement. 

The coalition will oppose the Housing Australia Future Fund but back separate legislation to establish an advisory council.

It means the government will need the support of the Greens and two other crossbenchers to pass its bills through the Senate. 

Greens leader Adam Bandt said his party would negotiate in good faith on amendments to the government’s plan.

“What we can’t support is a plan that makes the crisis worse … it needs to be a plan that will address the housing crisis,” he told reporters in Canberra.

The Greens want a minimum of $5 billion invested in social and affordable housing every year.

They argue the 30,000 homes to be built over five years are not enough and the $500 million annual spending cap is too restrictive.

The party also wants a freeze on rental increases, a doubling of Commonwealth rent assistance and a major investment in Indigenous housing.

Greens MP Max Chandler-Mather said the government’s plan to invest in the stock market and spend the returns on social and affordable housing would only make things worse. 

He said the future fund where the government planned to invest the money, lost 1.2 per cent in 2022, which would have delivered a $120 million hit.

“Imagine if we made schools or hospitals dependent on the success or failure of investments on the stock market.”

Liberal spokesman Michael Sukkar said there was an “absolute uncertainty” of funding from the government’s proposal, due to the nature of investing in the stock market.

“In a year where the stock market does well, there might be something to distribute,” he told parliament. 

“But in a tough year for those invested in equities, we would see not only no returns but also a reduction in the capital of the fund.”

He said the Reserve Bank told the government to reduce borrowing and spending, but the future fund would do the opposite.

“Anything that will increase the inflationary environment in the economy and therefore increase the prospect of higher mortgage interest rates cannot, in good conscience, be supported,” he said. 

Housing Minister Julie Collins said the fund would provide certainty for community housing providers.

The fund’s returns would provide 4000 homes for women and children impacted by family and domestic violence or older women at risk of homelessness, she said.

“Australians will be shocked to hear the coalition are voting against these important investments in affordable housing for Australians who need it most.”

Ms Collins said the government had a clear mandate after taking the fund to the election.

“I’ll continue having discussions right across the parliament with anybody that wants to engage … we want to get this done,” she said.