HIA welcomes the Housing Australia Future Fund

by | Nov 15, 2023

Home Industry Association logoThe Housing Industry Association (HIA) has welcomed the announcement of the commencement of the $10 billion Housing Australia Future Fund (HAFF).

HIA Managing Director, Jocelyn Martin said, “The Housing Australia Future Fund is an important initiative from the Federal Government to build 30,000 much need new social and affordable homes.”

“HIA is also pleased to see the establishment of ‘Housing Australia’, a new entity to oversee the HAFF and other key programs as part of the housing reform agenda.”

These include creating the National Housing Supply and Affordability Council to inform the Government of gaps in the supply of housing and identifying necessary funding and policy decisions to support more homes coming to market.

“The Federal Government recently announced that it wants 1.2 million homes built over five years starting July 2024, as part of its National Housing Accord. This is necessary to begin addressing the long-term shortage of housing supply,” Ms Martin said.

“It is important to recognise that the commitment to supply 30,000 social and affordable homes via the HAFF represents only 2.5 per cent of this aspirational target.”

However, Ms Martin says that broader reforms are required to address the current housing shortages and aid the private sector in enabling the delivery of the targets. These include:

  • Planning systems need to facilitate faster approval timeframes and higher-density residential development in existing suburbs near jobs and transport.
  • The release of greenfield and brownfield land and provision of infrastructure needs to be expedited.
  • Punitive taxes on both investors and owner-occupiers need to be abolished and replaced with fairer and broader sources of revenue.
  • Financial regulations need to make it easier for banks to lend and potential home buyers to borrow.

“Without these broader reforms, the pressure on social and affordable housing will remain, and the continued undersupply of housing of all forms will only increase,” concluded Ms Martin.