Treasurer Jim Chalmers hits back at Greens in stalemate over $10bn housing fund

Jim Chalmers has accused the Greens of playing “political games” in a tense standoff over one of Labor’s big promises.

Jim Chalmers has accused the Greens of playing political games as he publicly calls on the minor party to pass the government’s $10bn investment vehicle for social and affordable housing.

The government will reintroduce the Housing Australia Future Fund legislation to parliament during the upcoming sitting fortnight even though it remains at loggerheads with the Greens over the policy.

Labor is running out of time to resolve its impasse with the Greens, whose support it needs to pass the legislation that would set up the HAFF through the upper house, where it doesn’t hold a majority.

While the HAFF is the government’s centrepiece housing policy, the Treasurer on Monday insisted it was just one element of a “broad, ambitious housing agenda” and the Greens should get on board.

“It’s time to put the interests of people who desperately need more housing first ahead of the political interests of any one political party on the crossbench and to vote for the HAFF,” Dr Chalmers told reporters.

“This can’t go on forever. It’s time to put the ambit claims and the political games behind us – it’s time for the Greens to actually vote for more social and affordable housing and not just say that they believe in it.”

Treasurer Jim Chalmers says the Greens should get on-board with the policy. Picture: NCA NewsWire / Jeremy Piper

After providing $10bn worth of initial investment, the government says it would spend up to $500m a year from the returns the HAFF generates on social and affordable housing each year, with a promise of 30,000 new dwellings over five years.

But the Greens have been arguing the policy doesn’t go far enough because it won’t guarantee a funding floor from the HAFF’s annual returns or help renters in the private market.

The minor party used its balance of power position in the Senate to delay a vote on the HAFF legislation in May to secure more time to cut a deal with Labor.

Greens housing spokesman Max Chandler-Mather is calling on Labor to do more. Picture: NCA NewsWire / Martin Ollman

Following a month of tense negotiations, the Greens have watered down their demands.

They had asked for a guarantee of $5bn of Commonwealth funding for social and affordable housing every year before halving the requested sum to $2.5bn.

Greens housing spokesman Max Chandler-Mather told the ABC on Monday that his party would be willing to consider a figure between $500m and $2.5bn.

“Our frustration is that Labor still don’t seem to recognise the scale of the housing crisis right now,” he said.

“Spending at most $500m a year from next year, not even this year; not building a single home until after the federal election in 2025, and doing nothing for renters, is not a response of the scale of the housing crisis.”

Housing Minister Julie Collins said on Sunday the government was continuing to negotiate with the Greens “in good faith”.

Parliament will resume on Tuesday for its final sitting fortnight before the winter break.