The federal government’s $10 billion signature housing investment fund has passed parliament after months of tense negotiations and stonewalling.
The Housing Australia Future Fund is set to build 30,000 social and affordable homes over five years.
It will leverage the interest from the $10 billion to put towards the homes but a minimum of $500 million will be spent each year as part of a deal with the Greens.
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The minor party initially opposed the fund but agreed to support it after securing a further $1 billion on top of the $2 billion already promised for social and affordable housing supply.
Prime Minister Anthony Albanese said the fund would make a real difference to vulnerable Australians, describing the bill passing as a great victory.
“Today is a win for boosting housing supply … for improving housing affordability across the nation,” he told parliament on Thursday.
While the Greens failed in their bid to secure a rent freeze and cap, leader Adam Bandt said the fight would continue as more housing legislation came before parliament and would extend into the next federal election campaign if necessary.
“At some point, the penny has to drop with the government that renters need some breathing space, they need a rent freeze to allow incomes to catch up with the soaring rents,” he said.
Albanese has said a freeze is a state and territory issue and all leaders ruled it out at national cabinet.
Housing Minister Julie Collins said projects as part of the housing fund were ready to start.
“We already have community housing providers who are telling us that they have properties ready to go,” she told reporters.
“All they needed was the certainty that those funds were coming to get houses under way. So we have been talking to the community housing providers and to states and they all have a pipeline of things ready to go.”
Collins said despite concerns from the Greens not enough was being done for tenants, improvements had been made and states and territories were working to develop a consistent position on renters’ rights.
Opposition housing spokesman Michael Sukkar still had concerns the fund would not deliver.
“It’s not even a drop in the bucket … This is 6000 homes a year over five years. At the same time, this government is bringing in 1.5 million new migrants,” he said.
“I fear that we won’t see anywhere near these 30,000 homes … and even that is inadequate.”
Liberal frontbencher Anne Ruston has slammed the fund for already swelling past the $10 billion promised at the election due to deals with the Greens.
The opposition argues the way it is set up is inflationary and investment won’t flow to where it’s needed.
“This is just another classic example of a rushed headline policy that has not had the detail dealt with,” Senator Ruston said.
Tasmanian Liberal MP Bridget Archer said she made no apologies for supporting the fund, but would be keeping a close eye on its rollout.
“The number one constituent issue that comes through my office is the lack of social or affordable housing,” she said.