Anthony Albanese has listed the housing Australia future fund bill as one of four key pieces of legislation Labor wants passed this sitting fortnight.
But what is the future fund, how much will it invest in housing and why are other parties sceptical of its benefits?
What is the housing Australia future fund?
In his budget reply in May 2021, Anthony Albanese promised a $10bn housing fund to build 30,000 affordable homes.
The housing Australia future fund will invest the $10bn and then spend the earnings, up to $500m a year, on affordable and social housing projects.
Who will get homes?
Albanese said that over the first five years the fund would build 20,000 social housing properties, with 4,000 of those to be allocated for women and children fleeing domestic violence, and for older women on low incomes at risk of homelessness.
Another 10,000 affordable housing properties would be made available for frontline workers.
Where do other parties stand on the bill?
The Coalition objects to the bill, labelling it an “accounting trick” to borrow $10bn and spend the proceeds to maintain the program is budget neutral. They have also argued Labor’s off-budget funds are inflationary.
The Greens, particularly housing spokesperson Max Chandler-Mather, have warned the fund is not $10bn spent on housing but rather “a $10bn gamble on the stock market where the volatile returns are invested in housing”.
The Greens also point to the fact the existing future fund lost 1.2% last year, which would have translated to a $120m loss if the housing future fund had existed, with no funds released to spend on housing.
The independent senator, David Pocock, has said he wants “more ambition” because the current plan “is not going to touch the sides when it comes to dealing with the scale of the housing crisis that we’ve seen in the [Australian Capital Territory]”.
In a dissenting report in the Senate committee Pocock called for the fund to be doubled to $20bn and the $500m limit on disbursements to be scrapped.
Jacqui Lambie, whose party has two crucial Senate votes, has said they support the bill but are still in negotiations with government to improve it.
And other stakeholders?
The construction union, which is affiliated with Labor, has said that the housing Australia future fund doesn’t go far enough because its promise to create 30,000 homes over five years is dwarfed by demand for 650,000 social and affordable housing.
The incoming national secretary, Zach Smith, said “Australia is in the grips of one of the most serious housing crises in our history so what’s on the table simply doesn’t cut it”.
“Labor must be more ambitious on social housing,” he said. “The future fund proposal needs its funding to be dramatically increased if we’re going to go anywhere near meeting the skyrocketing need for housing.”
Industry Super Australia submitted to a parliamentary inquiry that there is an “identifiable project financing gap” because “it is likely more than $10 billion in additional capital will need to be found” to build the estimated number of social and affordable houses.
Nevertheless, ISA supported the housing future fund as it helped “guarantee recurrent funding” and it could be “easily scaled over time with additional top-ups”. It proposed amendments including indexing the $500m that can be released each year.
The housing minister, Julie Collins, has cited support from the Community Housing Industry Association, the Housing Industry Association, the Urban Development Institute, the Property Council and National Shelter.
What do the Greens want?
With the Coalition opposed and the Jacqui Lambie Network in favour, the Greens’ 11 Senate votes put them in balance of power on this bill.
The Greens want direct investment in housing, a national plan for renters including pushing the states to cap or freeze rents, and doubling the rate of commonwealth rent assistance.
Chandler-Mather told reporters on Tuesday the Greens want an amendment to “guarantee that at least $5bn is dispersed into Housing Australia every year” through direct budget appropriations or out of the housing future fund.
He said this was a third of the $15bn the National Housing Finance Investment Corporation has estimated is needed every year.
After a community door-knocking blitz over the weekend, Chandler-Mather claimed that “around 80%” of people the Greens spoke to said the minor party should “refuse to pass their housing plan until Labor agrees to address our concerns”.
The former Green and now independent senator, Lidia Thorpe, has asked for $1bn a year to be invested into First Nations housing.
Where is the bill up to?
The bill passed the lower house on 15 February, with Labor and crossbench independent MPs in favour. The Coalition opposed it, although the Liberal MP Bridget Archer crossed the floor to vote with Labor. The Greens abstained.
The bill is not likely to be voted on in the Senate until next week.
The Senate inquiry reported on Wednesday, with the Coalition dissenting from the Labor majority’s recommendation to pass the bill.
The Greens also dissented, pushing for more direct investment in housing and warning the bill “must be amended”.
The government is heaping pressure on the Greens. Albanese told Labor caucus on Tuesday that it was “beyond comprehension why anyone would vote against” the bill. In question time on Tuesday, Collins urged the Senate to pass the bill “quickly”.
