The federal government has confirmed it will divvy up its $2 billion social housing booster payment to Australia's states and territories on a per capita basis.
NSW will receive the lion's share of $610 million, Victoria will get $496m, Queensland $398m and Western Australia $209m.
South Australians will see $135m of the money, while Tasmania, the Northern Territory and the ACT will take minimum slices of $50m.
The funds will be allocated over the next fortnight.
Thousands of new homes will be created for public housing tenants with both new developments and upgrades of existing properties that are currently uninhabitable on the drawing board.
All of the money is to be committed by states and territories within two years ending June 30, 2025.
Prime Minister Anthony Albanese announced the Social Housing Accelerator at the Victorian Labor conference on Saturday.
He did not specify how many homes would be created, saying that would depend on how governments chose to spend the money.
"State and territory governments have agreed it will be in perpetuity, so we're not going to have public housing built and then flogged off," he told reporters.
He said premiers and chief ministers had agreed to amend some planning laws, reform zoning and free up more land for new builds.
NSW Premier Chris Minns welcomed the additional support, saying it was desperately needed.
"We've got a severe housing shortage in the state, both public, social and of course in the private market as well," he told Sky News.
"We have to be making sure this policy initiative, as well as many others, are pursued, because we can't have a situation where more inbound immigrants that come into Australia's largest state (are) putting more pressure on the housing market and the NSW government's standing flat footed."
Indigenous Australians Minister Linda Burney said the new funding was critical.
"It just astounds me (that) both the coalition and the Greens are holding up the future fund housing package in the Senate, which goes to providing houses for veterans, Aboriginal and Torres Strait Islander people and women escaping domestic violence," she said.
"How on earth can you justify holding that up?"
The move comes as the Greens continue to block laws in the Senate to enable the government's $10 billion Housing Australia Future Fund, calling for more ambitious spend and rent controls.
Greens leader Adam Bandt claimed the government had caved in to his party's demands on social housing and would negotiate over the entire $10 billion package in good faith.
The Greens say a rent freeze is needed to tackle the rising cost of housing but state leaders have ruled out taking any action, arguing it would reduce the flow of supply and investment.
Instead they have committed to working with Mr Albanese on improving renters' rights, delivering on a 20,000-dwelling national housing accord, and progressing a new national housing and homelessness plan.
