There are a number of initiatives, says housing minister
Making Australian housing affordable remains a key priority for the federal Labor government, and there are several initiatives underway to work towards this goal, Minister for Housing Julie Collins said.
The ALP, which came into power in May 2022, has promoted several initiatives to help more Australians own their own home – and also to support the creation of more affordable homes. From Oct. 1 last year, 10,000 new places opened under the Regional First Home Buyer scheme.
An expansion of the federal government’s Home Guarantee Scheme, which also includes the Family Home Guarantee, the program allows regional first home buyers to get onto the property ladder, buying a modest home in a regional area with a deposit from 5%.
In a bid to boost the number of affordable homes, the National Housing Accord was announced in the Federal Budget on Oct. 26, drawing scepticism about how the target of 1 million new homes by 2029 would be achieved.
Minister for Housing Julie Collins (pictured above) said in an opinion piece published on March 10 that the Albanese government was already delivering on its plan to create a better future, confirming that the government wanted to ensure that “more people have a safe and affordable place to call home” in Tasmania and Australia-wide.
In addition to the National Housing Accord, the Housing Australia Future Fund and the formation of a National Housing and Affordability Council are the key components of its plan.
In response to questions about current housing initiatives, Collins told MPA that the $10bn Housing Australia Future Fund was the single biggest investment from the federal government in social and affordable housing in more than a decade.
“Returns from the Housing Australia Future Fund will deliver the government’s commitment of 30,000 new social and affordable homes in the fund’s first five years,” Collins said.
While some states are more deficient in affordable homes than others, Collins said that she would ensure that the fund was distributed equitably.
“I want to make sure that every state and territory gets their fair share of the returns of the fund,” she said.
National Housing and Affordability Council update
A National Housing and Affordability Council is in the process of being created, which Collins said recognised the need to get the right policies in place.
“Drawing on members’ experiences from right across the housing sector, the council will provide frank and fearless advice to governments on housing supply and affordability,” Collins said.
An interim council has already held its first meeting and it will formally be in place later this year, she said.
“The National Housing Supply and Affordability Council Bill 2023 has passed the House of Representatives and will establish a permanent, statutory council later this year, once passed by the Parliament,” Collins said.
National Housing Accord target start date
In response to industry forecasts showing a decline in the number of dwellings being delivered over the next few years, putting increased pressure on affordability, Collins said that the National Housing Accord includes a shared ambition to build one million new well-located homes over five years from 2024.
“The target is timed to commence from mid-2024 to allow time for work under the accord to take effect and reflects that new supply takes 12 to 18 months or more to bring online,” Collins said.
As part of the National Housing Accord, the Budget delivered $350m in additional federal funding to deliver 10,000 affordable homes over five years from 2024, she said.
Collins said that the Housing Accord specifically includes a commitment from states and territories to work with local government to deliver planning and land-use reforms. It also includes a commitment to look for immediate opportunities to free up well-located state land, she said.
“State and territory governments have agreed to build on our additional commitment with up to 10,000 new homes as well, delivering up to 20,000 new affordable dwellings in total,” Collins said.
In addition to the Home Guarantee Scheme and Regional First Home Buyer Scheme, the government has proposed a Help to Buy Scheme, enabling eligible homebuyers to buy a home with the Australian government holding an equity share (up to 40% of the purchase price of a new home, or 30% of the purchase price of an existing home).
