THE Greens, independent Senators Lidia Thorpe and David Pocock have all issued dissenting reports in response to the Senate Inquiry into the Albanese government’s signature $10 billion Housing Australia Future Fund (HAFF), showing the precariousness of the bill’s future as it continues to be slammed by the crossbench for being too lightweight.
While the Coalition’s opposition to the bill is not particularly surprising, given the decade of underinvestment in social housing under three prime ministers, – it said the HAFF is “another example of Labor adding to government spending in a time of inflation” – Labor will require the support of the Greens and two crossbenchers to have enough numbers for the bill to pass through the upper house. It is trying to push it through this current sitting fortnight of Parliament.
Labor promised the HAFF in its 2021 budget reply – a year before winning the election – which would deliver 30,000 social and public homes. The off-budget fund would tip in the $10 billion, and then spend up to $500 million a year in earnings on the projects.
The Greens’ dissenting report described the legislation in its current form as “not fit for purpose”.
“The current plan, to gamble $10 billion on investments via the Future Fund, could result in years where not a single cent is spent on housing,” they said, noting that the HAFF would have lost $120 million last year with its proposed structure.
“It’s clear the government has no support for a housing plan that will make the crisis worse – it’s time for the government to accept that they’ve failed and agree to the almost universal call to invest billions of extra dollars in social housing,” said Max Chandler-Mather, Greens spokesperson for housing and homelessness.
The Greens have proposed to invest $5 billion a year in public, community and affordable housing, which would build 225,000 homes, along with introducing a national freeze on rent increases.
“The bottom line is if the Government can find $368 billion for nuclear attack submarines then it would be morally repugnant to reject $5 billion a year for public and affordable housing in the middle of a housing and homelessness crisis.”
The Greens say Australia has a shortage of 640,000 social and affordable homes, a figure that will grow by 75,000 in five years.
In his dissent, Pocock called for the HAFF to be increased to $20 billion to “arrest the et decline in social housing supply and ensure a more adequate policy response to Australia’s worsening housing crisis”, and for the $500m annual disbursement cap to be removed, or instead indexed annually on 1st July for five years.
Thorpe – who was yesterday in the headlines after being thrown to the ground by police at a counter-protest to an anti-trans rally in Canberra – similar to her former party the Greens called for a $5 billion minimum investment every year, and like Pocock that the $500 million cap be removed.
Among her other recommendations were that $1 billion be invested annually in First Nations housing in urban, regional and remote areas, with a preference for housing to be owned and maintained by First Nations housing organisations where feasible.
Pocock also said the initial review period for the HAFF should be brought forward to align with the first review of the Housing Supply and Affordability Council, to be undertaken as soon as possible after 1st July 2026.
Opposition has also come from construction workers’ union the CFMEU. Its incoming national secretary, Zach Smith, said “what’s on the table simply doesn’t cut it”.
The National Affordable Housing Alliance, which includes Master Builders Australia, the Housing Industry Association, Community Housing Industry Association and the Property Council of Australia among others in its membership, have also recommended doubling the size of the Housing Future Fund capital investment to $20 billion.
Master Builders is forecasting new housing over the next five years will fall short of the 200,000 homes needed annually until 2026-27.
Industry Super Australia estimates that based on construction costs of around $550,000 per dwelling and underlying net rental cashflows available to support servicing commitments “there is an identifiable project financing gap”.
“Under conservative assumptions it is likely more than $10 billion in additional capital will need to be found to construct 40,000 social and affordable dwelling units,” it has said.
The Coalition’s dissent said, “Housing costs, like all costs, are under pressure as a result of the cost-of-living crisis and rising interest rates under the Albanese government”.
“The government is not seeking to help the RBA fight inflation by reducing fiscal expenditure, which should be the number one economic priority.”
It also said the investment mandate for the fund has not been released for consultation, and numerous stakeholders have yet to see any details for it.
Decade of inaction
However the Coalition’s lack of support for the fund is not surprising given the decade of inaction under Prime Ministers Abbott, Turnbull and Morrison over social housing and homelessness.
A report released by the Australian Institute of Health and Welfare (AIHW) in December, shows more than a quarter of a million Australians required access to government-funded homelessness services in 2021-22, including more than 75,000 children. At the same time, social housing stock has fallen from 7.1% of total housing across the country in 1991, to only 4.2%, which is 2.9% below the OECD average.
This week the Australian Bureau of Statistics released 2021 Census data that showed the number women and girls experiencing homelessness increased by about 10% in five years, compared with a 1.6% increase in men.
Aboriginal and Torres Strait Islander people, who make up 3.8% of the population, accounted for 20.4% of all homeless people, which grew 5.2% to a total of about 122,400.
Meanwhile a report by Homelessness Australia reveals only 3% of the tens of thousands of women and children that fled family and domestic violence and came to homelessness services received long-term housing assistance.
Over 40,000 people in FY20 sought long-term housing, but only 1,233 – or 3.1% – were provided with housing. Sadly over 37,000 missed out on long-term housing, while some may have secured private rental accommodation, others will have returned to live where their perpetrator, or become homeless.
According to AHURI, Australia is estimated to need 36,000 affordable social housing properties each year to cater for total demand.
Last year former Stockland CEO Mark Steinert warned that if nothing changes, the health, education, productivity and crime costs borne by the community as a result of this unmet housing need is estimated to reach $25 billion per year.
A Housing For All Australians (HAA) report, Give Me Shelter, found that the national average benefit-cost ratio (BCR) for Australia in providing adequate social and affordable housing infrastructure is 2:1.
In other words, for every $1 invested to drive the delivery of public, social and affordable housing, the Australian community saves $2 in future costs.
This rate of return is comparable to, or better than, those achieved in many other major investments in infrastructure including Melbourne Metro (1.5:1) and the M12 Motorway Sydney.
