Crossbench Under Pressure to Agree to Labor’s $10 Billion Social Housing Fund

A resident stands on a balcony of a public housing apartment in Redfern in Sydney, Australia, on Sept. 16, 2021. (Lisa Maree Williams/Getty Images)

Crossbenchers in the senate are under pressure to pass the Australian Labor government’s $10 billion (US$6.7 billion) housing fund bill through the parliament this week after negotiations between the crossbenchers and the government derailed.

The bill is an initiative by Labor to fulfil its election promise to build 30,000 social and affordable homes, and under the legislation, the government will set up a $10 billion perpetual fund and use its returns to invest in housing across Australia.

The maximum amount that can be withdrawn from the fund is capped at $500 million annually, with the government expecting 30,000 social and affordable homes to be built in the first five years of the fund, among which 4,000 would be distributed to women and children who are victims of domestic violence.

For the bill to become law, Labor needs the support of the Greens and two other votes from the crossbench in the Senate after the Coalition confirmed its objection.

Government Criticises Senate Crossbench

Following the failed negotiations, Housing Minister Julie Collins criticised the Greens and other crossbenchers for opposing the bill, saying the government was doing its fair share to tackle the housing crisis.

The minister also emphasised that vulnerable people urgently needed the legislation to pass the parliament.

“I would say to the Greens and to other crossbenchers in the Senate that vulnerable people cannot afford for this to delay,” she said in comments obtained by AAP.

“If their response is ‘it’s our way or zero’, that is just unacceptable when you’ve got vulnerable people on the ground who need housing today.”

Minister for Housing, Homelessness and Small Business Julie Collins MP speaks at Parliament House in Canberra, Australia, on July 28, 2022. (Martin Ollman/Getty Images)

But independent Senator David Pocock, who has said that he would not support the bill in its current form, wanted the government to have a more ambitious housing plan.

“This is a huge issue around the country. I'll be pushing them on ambition. Housing is something we’ve got to deal with, and it’s simply not good enough in Australia to have this sort of social housing waiting list that we’re seeing,” he told Sky News.

Social Housing Advocates Say Scheme Urgent

Meanwhile, social housing advocate groups also called on the political groups to reach an agreement on the housing fund due to the urgency of the housing crisis in Australia.

“We need to get moving on building a better supply of social and affordable housing, and these three pieces of legislation are important building blocks,” Community Housing Industry Association CEO Wendy Hayhurst said in a statement.

“We can strengthen them and provide additional resources in the years ahead, but we need to get moving now.”

Kate Colvin, CEO of Homelessness Australia, said that while Labor’s housing package would not be enough to fix the housing crisis, it was critical to kick-start a longer-term response.

“We need the planning, coordination and financing in place to make sure this is the last housing crisis we face,” he said.

“And for that reason, it’s important that the Housing Australia Future Fund, Housing Australia and other key bodies get going now.”

Greens Demand More Amendments to the Bill

Meanwhile, the Greens have said the 30,000 homes proposed under the bill were insufficient to meet the demand.

Pointing to one-third of Australians living in rentals, the Greens said the bill needed to include more assistance for those people.

“Labor’s approach does even touch the side of the housing crisis. Rents have gone up seven times faster than wages,” Greens Leader Adam Bandt said.

“People are really struggling, and there is nothing in this package that is going to make life easier for renters.”

Greens Leader Adam Bandt speaks at Parliament House in Canberra, Australia on Dec 9, 2020. (Photo by Sam Mooy/Getty Images)

Building Houses Not Effective

However, some economists have pointed out that building more social and affordable homes is an ineffective and expensive approach to dealing with the housing crisis in Australia.

Chief Economist Peter Tulip from the Sydney-based Centre for Independent Studies previously told The Epoch Times that the government should increase the housing supply by easing planning restrictions and allowing builders to build more.

In addition, he noted that the Commonwealth Rental Assistance (CRA) was more efficient, effective and equitable than building social housing.

“The Henry Report, the McClure report and the recent Productivity Commission report all recommend that housing subsidies for the poor be directed through CRA rather than public or social housing,” he said.

A report by the City Futures Research Centre at the University of New South Wales in November 2022 indicated that 640,000 Australians were currently in housing stress, and this figure would grow to one million by 2041.