Guaranteed 1200 Affordable Homes Across All States and Territories Over the Next Five Years

Key Highlights :

1. The government is guaranteeing 1200 affordable homes across the next five years to every state and territory.

2. The floor will ensure all jurisdictions get their fair share through the government's signature housing fund, despite obvious size differences between states such as NSW and Tasmania.

3. The other biggest states will get their fair share, they will get a lot more than the floor. What we are talking about here is about a floor.

4. There will be certainty of funding for long-term projects for investors over the long term.

5. Tasmanian independent senator Tammy Tyrrell forced the guarantee from the government in exchange for her vote in the Senate to pass the fund.

6. The government is struggling to garner support for its housing future fund, which would leverage $10 billion and invest the profits into affordable and social housing up to $500 million each year.

7. The opposition says it will not support the bill, arguing it would be inflationary and add to interest rate hikes due to the amount of money that would need to be borrowed to float the fund.

8. The Greens are also withholding support in the hope of securing more investment and a rent freeze.

9. Negotiations continue with crossbencher David Pocock, with the vote of a second independent on top of the Greens needed to pass the legislation in the Senate.

10. The ACT independent says he is frustrated at the pace of negotiations with the government, but won't stand in the way of the fund.

     The Australian government has announced that it will amend its housing fund to guarantee 1200 affordable and social homes to each state and territory over the next five years. This is following negotiations with the crossbench in the Senate.

     The government's signature housing fund will ensure that all jurisdictions get their fair share of the 1200 homes, regardless of the size differences between states such as NSW and Tasmania. This will provide community housing providers with the certainty of pipeline, particularly in smaller jurisdictions, so they can grow.

     Tasmanian independent senator Tammy Tyrrell was instrumental in getting this guarantee from the government in exchange for her vote in the Senate to pass the fund. The government is currently struggling to garner support for its housing future fund, which would leverage $10 billion and invest the profits into affordable and social housing up to $500 million each year.

     Senator Tyrrell said that this is a massive victory for Tasmania, as without the guarantee, they would only be looking at around 600 homes, depending on how the market performs. This guarantee will double the amount of homes Tasmania will receive in the same amount of time, regardless of the performance of the future fund.

     The opposition has said that they will not support the bill, arguing that it would be inflationary and add to interest rate hikes due to the amount of money that would need to be borrowed to float the fund. The Greens are also withholding their support in the hope of securing more investment and a rent freeze.

     Negotiations are still continuing with crossbencher David Pocock, with the vote of a second independent on top of the Greens needed to pass the legislation in the Senate. Senator Pocock said that if the government is expecting a nine per cent average return based on historical means, it should be investing $900 million annually. He is also calling for the money to be indexed.

     Senator Tyrrell is urging the Greens in Tasmania to support the bill, given the government's guarantee. She said that they have fought to get Tasmania its fair share and the Greens are threatening to leave them with nothing.

     Federal, state and territory housing ministers met in Canberra on Wednesday and discussed measures to increase affordable housing stock and take pressure off renters. All ministers signed a letter to federal senators urging them to support the passing of the housing fund, including the sole Liberal minister, Tasmania's Guy Barnett.

     The government's guarantee of 1200 affordable and social homes to each state and territory over the next five years is a step in the right direction to help alleviate Australia's housing crisis. It will provide community housing providers with the certainty of pipeline and will ensure that all jurisdictions get their fair share of the homes. Negotiations are still ongoing with crossbencher David Pocock, and all eyes are on the Senate to see if the bill will be passed.

Continue Reading at Source : thewest