Draft legislation has been released by the Labor government which seeks to give effect to some of the party’s key election commitments related to housing.
The $10 billion Housing Australia Future Fund (HAFF) aims to provide ongoing investment returns to deliver 30,000 new social and affordable homes in its first five years.
The government said that the HAFF, which will be managed by the Future Fund, will also deliver on its commitments to help address acute housing needs across the country.
A total $200 million will be allocated to repairing, maintaining and improving housing in remote Indigenous communities and $100 million towards housing options for women and children impacted by family and domestic violence and older women at risk of homelessness.
Additionally, $30 million will be directed towards building housing and fund specialist services for veterans who are experiencing homelessness or at risk of homelessness.
In a statement on Monday, Minister for Housing Julie Collins said that having a safe and affordable place to call home is critical for all Australians.
“Our ambitious housing agenda will help ensure there will be a pipeline delivering new homes for Australians, and this fund will be a major component,” she said.
“This is a significant and long‑term investment, with returns being invested in new social and affordable housing across the country.”
“We believe that investing through the HAFF will meet the best financial interests of our members, particularly those members requiring a steady stream of income during retirement or as part of a more conservative accumulation product,” Cbus chair Wayne Swan said at the time.
The draft legislation released on Monday also seeks to establish the National Housing Supply and Affordability Council, which will provide independent advice to the government, and rename the National Housing Finance and Investment Corporation to Housing Australia.
“We want to ensure our investments are underpinned by expert advice,” said Ms Collins.
“The council’s advice will be essential as we continue to deliver our ambitious housing agenda.”
The draft legislation is expected to be introduced into the Parliament early next year. The government has encouraged stakeholders to provide a submission by 11 January 2023.
Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.