Housing Affordability

The Albanese Labor Government is dedicated to making housing affordable in Australia. That’s why we’re building 1.2 million homes, helping more Australians buy their first home, incentivising more rental properties with cheaper rents, and providing more social housing.

I particularly know the importance of affordable housing. I grew up in inner-city Melbourne in public housing in the 70s and 80s. Having access to affordable housing helped level the playing field, it offered my family real equality of opportunity. Despite challenges and prejudices, it gave me the chance to succeed based on merit and hard work.

Through nine years of Liberal Government, housing did not keep pace with our growing population. Before the Albanese Labor Government, the last time significant federal funding was spent on public housing was during the Rudd and Gillard Governments, when $5.2 billion was spent on the National Building and Jobs Plan.

I have publicly advocated for more investment in public housing throughout my career and you can read about in my article in The Age.

We're building 1.2 million new homes. Helping you build, rent, buy.

The simple fact is that Australia has a housing shortage.

We need to build more homes, more quickly, in more parts of the country.

That's why the Albanese Government has an ambitious goal of building 1.2 million homes by the end of the decade.

We know this is a challenge, but it's a challenge we must meet. That’s why last year, we put Help to Buy and Build to Rent into law.

Our plan for 1.2 million homes means we are:

Training more tradies, funding more apprenticeships, growing the workforce
Kickstarting construction by cutting red tape
Providing incentives to state governments to get homes built quickly
Delivering the biggest investment in social housing in more than a decade to help reduce homelessness

That's how we'll deliver more homes.

And for renters doing it tough, we have increased rent assistance.

Whether you're renting, buying or building, more homes will mean more security for everyone.

What is Help to Buy?

Help to Buy will allow 40,000 low and middle-income Australians to realise their dream of home ownership – because the only way into the market shouldn’t be through the bank of mum and dad.

This will be done through a shared equity scheme, an agreement where the government pays for the deposit on a house on behalf of the first home buyer, in return for a financial stake in the property.

The Government will pay up to 30% equity for existing homes, and 40% for new builds. Eligibility for the scheme is capped at single income earners under $90,000, and couples earning under $120,000.

That means that on an existing home worth $500,000, the government pays a deposit of $150,000 on behalf of the first home buyer, meaning that the mortgage for the property would only be $350,000.

You can choose to pay out the Government’s share, but you don’t have to until you sell the property. When selling, the remaining share of the property owned by the Government is paid out as part of the sale.

What is Build to Rent?

Build to Rent properties are different to a traditional rental tenancy arrangement. In a Build to Rent property, a developer builds and retains ownership of the property, leasing out directly to tenants.

Build to Rent properties are built faster, as developments are funded by investment capital rather than pre-sales as the developer shoulders 100% of the cost upfront and does not have to wait for a minimum number of apartments to be purchased before construction can start.

On average, rent increases are more stable in Build to Rent properties, and the quick supply that these rentals can provide will put downward pressure on rent.

The Government is providing tax incentives for Build to Rent developments and increasing tax concessions on managed trusts, making them a more attractive investment option for investors, and increasing the amount of capital available for Build to Rent properties to start construction faster across Australia.

You might already be living in a Build to Rent property, as Victoria is leading the country in Build to Rent construction. Over the next three years, it is predicted that more than half of all apartment supply entering the Melbourne market is for Build to Rent apartments.

Alongside Help to Buy and Build to Rent, the Albanese Labor Government is also:

Training an additional 20,000 tradies to build the homes we need via Fee-Free TAFE, in addition to the already 21,000 students that have taken up construction courses already.
Turbo-charging the delivery of 4,000 new social homes via the $2 billion Social Housing Accelerator, which is already building homes across the country.
Incentivising States and Territories to build more homes through a $3 billion New Homes Bonus.
Working with States and Territories on streamlining approvals and cutting red tape to build the homes we need. For example, in Victoria, we’ve halved the time it takes to approve affordable Build to Rent apartments.
Investing in home-unlocking infrastructure through the $1.5 billion Housing Support Program – that means building roads, drainage and sewage to support new developments and density increases.

And for renters doing it tough, we’ve increased rent assistance.

Whether you're renting, buying or building, more homes will mean more security for everyone.

Housing Australia Future Fund

I am proud that the Albanese Labor Government has created a $10 billion Housing Australia Future Fund to build social and affordable housing and create thousands of jobs now and in the long term.

Each year investment returns from the Housing Australia Future Fund will be transferred to the National Housing Finance and Investment Corporation (NHFIC) to pay for social and affordable housing projects.

Over the first 5 years the investment returns will build around:

20,000 social housing properties.
4,000 of the 20,000 social housing properties will be allocated for women and children fleeing domestic and family violence and older women on low incomes who are at risk of homelessness.
10,000 affordable housing properties for frontline workers

This investment directly supports 21,500 full-time jobs across the construction industry and broader economy, per year, over 5 years, nationwide – with one in 10 direct workers on site to be apprentices.

In addition to this, a portion of the investment returns will be available to fund acute housing needs in perpetuity. This funding will be used for additional crisis, transitional and long-term social housing in parts of the country with the greatest need.

In the first 5 years these investment returns will fund:

· $200 million for the repair, maintenance, and improvements of housing in remote Indigenous communities, where some of the worst housing standards in the world are endured by our First Nations people.

· $100 million for crisis and transitional housing options for women and children fleeing domestic and family violence and older women on low incomes who are at risk of homelessness.

· $30 million to build more housing and fund specialist services for veterans who are experiencing homelessness or at-risk of homelessness.