Housing Minister Julie Collins at the launch of the Property Council’s housing report at Parliament House last week
The Albanese Government last week announced a package of laws to create the “single biggest investment in affordable and social housing in more than a decade”.
So, what legislation was introduced, and what does it entail?
Housing Australia Fund Bill 2023
The proposed legislation creates the Housing Australia Future Fund and allocates an initial sum of $10 billion. Distributions from the Fund will be used to finance the construction of social and affordable housing, as well as other pressing housing needs.
This legislation limits annual disbursements to a maximum of $500 million annually to preserve the Fund’s balance and guarantee a long-term, reliable source of funding. The bill mandates periodic evaluations of the Act’s performance every five years to determine how effectively the Fund is addressing the housing needs of the Australian people, including those for social, affordable, and pressing housing requirements.
The Housing Australia Future Fund will be managed by the Future Fund Board of Guardians.
The National Housing Supply and Affordability Council Bill 2023
The National Housing Supply and Affordability Council Bill 2023 establishes the National Housing Supply and Affordability Council as a standalone, legally established advisory organisation. The council will provide impartial counsel to the government on matters of housing supply and affordability, helping shape the Commonwealth’s overall housing policy.
To jumpstart its operations, the government established a temporary council as of January 1st, 2023, led by Susan Lloyd-Hurwitz. The interim council comprises six appointed members and one ex-officio member and serves in an advisory capacity without legal standing.
Upon the passage of this bill and starting July 1st, 2023, the interim council will dissolve, and the council will begin functioning as a standalone, legally established advisory organisation. The permanent council will consist of a minimum of six and a maximum of nine appointed members with expertise and background in various areas related to housing supply and affordability.
The Treasury Laws Amendment (Housing Measures No. 1) Bill 2023
This proposed legislation modifies the National Housing Finance and Investment Corporation Act 2018 by renaming NHFIC to Housing Australia. The NHFIC Act established the National Housing Finance and Investment Corporation with the goal of enhancing housing outcomes for the people of Australia, and it became operational on June 30th, 2018.
Housing Australia will remain a Commonwealth corporate entity managed by a separate board and responsible to the Minister for Housing. The Minister for Housing will issue an investment mandate direction to guide Housing Australia in executing its duties.
In addition to the new obligations specified in the Housing Australia Future Fund Bill, Housing Australia will continue to oversee the Affordable Housing Bond Aggregator, the National Housing Infrastructure Facility, and the Home Guarantee Schemes. This will allow Housing Australia to build upon the successes of the National Housing Finance and Investment Corporation and assist the government in fulfilling its new housing commitments.
The bill also streamlines Housing Australia’s functions and establishes a yearly review process for the National Housing Infrastructure Facility. This will enable the government to evaluate the facility’s performance in terms of increasing and accelerating the supply of social and affordable housing on a regular basis.
The Property Council’s position
Property Council Chief Executive Mike Zorbas welcomed the Housing Minister Julie Collins’ initiative to have all levels of government and business working together to solve the national housing supply shortage.
“The legislation introduced is an important first step to get government working together with industry to bridge the national housing deficit and stimulate new supply that Australia desperately needs,” Mr Zorbas said.
“Our best hope of tackling the housing supply shortage is using the Housing Accord to incentivise national housing targets with local accountability.
“We strongly support giving the Housing Supply and Affordability Council a broad mandate and powers that would allow it to assess the performance of the housing system and state and territory and local governments’ capacity to meet demand across the housing spectrum,” he said.
The Property Council is seeking further clarity on proposed amendments to the functions of NHFIC as the new Housing Australia, that propose removing “investment” and could act to constrain financing solutions in dispensing of the Fund through only loans and grants.
Further, we would like to see assurances that the research function supporting the Housing Supply and Affordability Council will also be independent, as they have been at NHFIC.