The federal government will tip billions of dollars of additional investment into building new homes in next week’s federal budget, as it chases a promise to build 1.2 million new homes by 2030.
An additional $1 billion will be spent on crisis and transitional accommodation for women and children fleeing family violence and for youth through the National Housing Infrastructure Facility.
The facility’s scope was broadened to be able to fund social and affordable housing, as well as enabling infrastructure, and $700 million of the stepped-up funding will be dedicated to supporting crisis and transitional housing.
Prime Minister Anthony Albanese agreed at a meeting of National Cabinet on Friday to also provide $9.3 billion to states and territories over five years to provide support for homelessness, crisis support and to build and repair social housing.
The five-year deal effectively doubles the Commonwealth’s contribution of homelessness funding to $400 million annually, which will be matched by states and territories.
Another $1 billion will be provided to the states and territories to build roads, sewers, energy and water supplies and other community infrastructure to speed up the home-building process.
The prime minister said the funding commitment was “less talk and more homes”.
“This isn’t about one suburb or one city or one state. It’s a challenge facing Australians everywhere and it needs action from every level of government,” Mr Albanese said.
Housing Minister Julie Collins said the new money would ease pressure on Australians “doing it tough”.
“This will deliver more homes for home buyers, more homes for renters and more homes for Australians who need them,” Ms Collins said.
The government also announced its intentions to force universities to increase their supply of student accommodation for domestic and international students.
Education Minister Jason Clare said the government would consult with the sector to drive more purpose-built student accommodation.
The funding will be detailed in next week’s budget and will make up a significant part of the Albanese government’s response to the ongoing housing crisis across the country.
Nationally rental vacancies have collapsed to 0.7 per cent, a record low, Domain data has shown, with the issue even worse in some cities.
Alongside inflation and multiple increases to interest rates decided by the Reserve Bank, it has helped to fuel rental price rises of 8.5 per cent compared to a year ago — on top of significant cost increases before that.
But despite the money being poured in by government, building approvals have been falling since the end of the COVID-19 pandemic, at the same time as an influx of returning overseas migrants has ramped up.
The funding announcement builds on $25 billion already committed to new housing investments, $10 billion of that in the Housing Australia Future Fund designed to help build 30,000 social and affordable rental homes.
A $5.5-billion “Help to Buy” scheme is yet to win enough support to be passed in parliament.
Loading…