Gated Post | Dec 21, 2023

Australian housing supply front and centre for policy makers

The passing of the previously delayed Housing Australia Future Fund (HAFF) means that all the Albanese government’s announced housing policies are now in place. These policies represent a minimum funding pool of $5.5 billion stretching to the end of the decade, potentially lifting as high as $10 billion if all targets are met and excess fund returns are achieved.

What you will learn:

  • The Federal Government has also legislated the $10 billion HAFF which aims to use investment returns to help deliver an additional 30,000 social and affordable rental dwellings in its first five years. Negotiations to achieve the bill’s passage included a $500 million minimum annual spend (starting FY2025), a $2 billion Social Housing Accelerator fund, and a $1 billion contribution to the National Housing Infrastructure Facility.
  • These policies do not materially impact the near-term outlook for residential construction. Given the lags involved with new developments and a weak approval lead, their impact over the next two years should be negligible. Some upside exists towards the end of the decade, although we expect this will be minimal given the modest volume of recurrent funding and the likelihood some major states will undershoot their target, causing bonus payments to prove ineffective absent further adjustment.
  • We expect there will be more movement on the housing policy front to come, with future policy progress most likely driven at the state and territory level as these governments work towards meeting their housing accord targets.
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