Labor Party vows to spend billions on affordable housing for families

Low and middle-income families struggling to pay the rent will save more than $90 a week under a Labor election promise to turbocharge the construction of affordable apartments and houses.

Low and middle-income families struggling to pay the rent will save more than $90 a week under a Labor election promise to turbocharge the construction of affordable apartments and houses.

Opposition Leader Bill Shorten will today unveil a multibillion-dollar plan to build 250,000 affordable homes over the next decade, including 20,000 units and houses in his government’s first term, if elected.

The opposition will be hoping the housing boost distracts from the Labor Party’s three-day National Conference where delegates are bracing for divisive debates on refugees, dole payments and climate policy.

Labor has a plan to build 250,000 affordable homes over the next decade. Picture: AAP/Brendan Esposito

Mr Shorten has stared down a push by Labor’s Left faction for changes to offshore processing but faces mounting pressure from unions for a ­return to industry-wide bargaining to boost the power of low-paid workers.

Yesterday, both factions met to finalise their positions on a range of issues ahead of the conference where Mr Shorten’s Right faction is expected to have a narrow majority.

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In a speech today, Mr Shorten will tell delegates and observers that rental affordability is a “national challenge and it demands national leadership”.

If elected, Labor will offer 15-year subsidies — worth up to $8500 annually — to investors who build new houses if their properties are let out at 20 per cent below market rent.

The opposition hopes the plan will boost construction and drive down rents by an average of $92 a week for a family paying the national rental average of $462. In Sydney families will save $116 a week off the average Sydney rental price.

Opposition leader Bill Shorten will put an affordable housing plan in place if elected. Picture: AAP/Daniel Pockett

Labor will hope today’s announcement will derail a fear campaign over its other controversial housing policies to limit negative gearing to new homes and cut the capital gains tax discount.

The Morrison government claims curbing the tax concessions would be a multi-billion dollar hit to the construction sector and drive up rents.

Mr Shorten said the housing plan, worth $6.6 billion over the next decade, would “support” negative gearing reforms.

“Access to housing stands as one of the biggest challenges in addressing intergenerational inequality — there is a persistent and increasing wealth gap which is locking Australians out of the housing market,” Mr Shorten said.

“Increasing the supply of affordable housing is critical to addressing pressures on disposable income, and in turn, addressing inequality.”

Ahead of Labor’s conference, the Morrison Government seized on a push by Labor for Aid which will push for Australia’s foreign aid budget to be boosted to 0.7 per cent of Gross National Income (GNI).

Government modelling, provided exclusively to The Sunday Telegraph shows that raising the aid budget to 0.7 per cent of GNI by 2019-20 would cost $128.2 billion over the decade, or eight new Australian hospitals a year.

Minister for Foreign Affairs Marise Payne said the policy push was an example of “Labor’s reckless spending”.