ONE the eve of its flagship housing supply programs getting underway, the Albanese government has paid the states and territories an additional combined $1 billion that will go towards infrastructure works and more social housing.
The payment is on top of each state receiving a share of the $1 billion announced last week that will be directed to crisis and transitional accommodation for women and children fleeing domestic violence, and youth, through Housing Australia. That agreement includes a doubling of Commonwealth funding for homelessness, which state and territory governments must match.
In the new announcement, states and territories will paid be through the Priority Works Stream of the Housing Support Program, in addition to the $500 million already under the program.
“This funding for every state and territory will help build more homes, more quickly, in more parts of our country,” Prime Minister Anthony Albanese said.
“It will build the roads, energy and water we need for new homes.
“Because building more homes will make housing more affordable whether you’re building, renting or buying.”
The government has been touting its $32 billion Homes for Australia plan that aims to deliver 1.2 million “well located” homes across the country over five years from 1st July under the National Housing Accord, amid a national housing crisis that has seen housing accessibility and affordability strained critical levels.
That will run concurrently with the Housing Australia Future Fund, which aims to deliver 20,000 social homes and 10,000 affordable homes, and the National Housing Accord Facility, which aims to deliver an additional 10,000 affordable homes. The Social Housing Accelerator is underway with the aim of building 4,000 social homes.
Housing Minister Julie Collins told reporters the states and territories can spend up to 25% of the immediate payment directly on social housing if they choose, and that the funding is also on top of the $9.3 billion agreement over five years with the states and territories for social housing announced in May as part of this year’s budget.
The investment can also be used to build enabling infrastructure and amenities essential for new homes, such as roads, sewers, energy, water and community infrastructure.
The National Housing Accord target is considered farfetched by analysts and the government’s own Albanese government’s National Housing Supply and Affordability Council on current construction and economic conditions.
When asked if she was still confident about achieving the goal by reporters, Collins said “we’ll be doing everything we can”.
“We said it was an ambitious target. We need to be ambitious as a country. We have significant housing challenges, so we need to be ambitious. We want to change the settings and the architecture of housing in Australia. That’s what all the work we’ve done – the state premiers through National Cabinet, through housing ministers, and indeed, working with the construction sector and the community housing sector – has been about. We want to all be working together, and we need to be ambitious.”
Meanwhile, analysis of state and territory data has shown almost 190,000 households are on social housing waiting lists across the country, suggesting an ongoing shortfall in social and affordable housing despite federal and state government programs.
States and territories will be required to provide implementation plans for the Priority Work Stream by September that will outline the specific projects the new $1 billion in funding will deliver.
NSW will receive $304.3 million of the $1 billion, with Victoria receiving $248.8 million and Queensland just under $200 million.
Western Australia will receive $105.3 million and South Australia $67.4 million, while $25 million will go towards each of Tasmania, Northern Territory and ACT.
