The national affordable housing crisis was already being felt in the Goulburn Valley before the recent floods rendered dozens of additional families homeless across the region, but the federal budget does promise to offer some medium- to longer-term relief from the problem.
The Albanese Government’s first budget included what it is describing as a landmark agreement, the National Housing Accord.
The government says the accord will align the efforts of all levels of government, institutional investors and the construction sector to build one million new well-located homes over five years from 2024.
The budget includes $350 million in additional federal funding to deliver 10,000 affordable homes over five years from 2024, on top of the government’s existing election commitments.
This funding will incentivise superannuation funds and other institutional investors to make investments in social and affordable housing by covering the gap between market rents and subsidised rents.
State and territory governments have also agreed to build up to 10,000 new homes, delivering up to 20,000 new affordable dwellings in total.
The accord includes a range of other actions, which the government said would “support a sustainable, long-term pipeline of additional housing supply and help take pressure off affordability”.
They include states and territories expediting zoning, planning and land release for social and affordable housing, the Commonwealth Government providing financing options through the Housing Australia Future Fund to facilitate institutional investment in social and affordable housing, and working with local governments to deliver planning reforms and to free up landholdings.
The announcement of the accord has been welcomed by groups lobbying for action to ease the housing crisis.
Beyond Housing has seen more than 220 people join its existing queue of almost 3000 for emergency housing since the Goulburn Valley floods.
Chief executive Celia Adams said the accord was a move in the right direction.
“I think seeing a federal budget addressing the housing crisis is long overdue,” she said.
“The accord lays the foundations for increasing the supply of affordable housing. It’s a really good start to tackling the housing crisis.
“We’ve seen in the papers and the summaries that there will be a focus on regional areas, and we would absolutely welcome that.”
The Community Housing Industry Association, which represents not-for-profit community housing providers, has described the accord as a “breakthrough moment for Australia’s housing affordability crisis”.
The Regional Australia Institute also welcomed the announcement of the accord, saying at least one third of the investment should be directed to regional areas with acute housing shortages.
In its response to the budget, the Australian Council of Social Service described the National Housing Accord as a “serious start to tackling the housing crisis”, but added that "a lot more social housing dwellings“ would be required.
Everybody’s Home, a coalition of groups campaigning for more affordable housing, described the accord as a potential “game changer for housing affordability”.
The federal Opposition has not been so positive, with Member for Nicholls Sam Birrell saying the accord does not do enough to speed up the release of land for the construction of housing.
"The thing which will build a million houses is removing the fundamental issue, which is opening up land and cutting red tape,“ he said.
“The process from buying a rural block to pouring a slab is years. I know a lot of those are state and council issues, but there was nothing to address that."