Greens reject Labor’s last-minute amendments to $10bn housing fund

Anthony Albanese has been accused of playing cute with his claims about the housing affordability and rental crisis as his $10bn promise hangs in the balance.

Anthony Albanese has been accused of playing cute with his claims the federal government can’t co-ordinate a nationwide rent freeze or spend more money on social and affordable housing.

Greens senator Sarah Hanson-Young made the criticism of the Prime Minister on Tuesday shortly after her party rejected the government’s offer to amend its centrepiece housing policy.

“If you want to solve the rental crisis, if you want to solve the housing affordability crisis, then they are the two things you should do,” Senator Hanson-Young told the ABC.

“It strikes me as a bit too cute for the Prime Minister to say he cannot do these things. Of course he can, he just has to want it.”

The Housing Australia Future Fund – a $10bn investment vehicle to raise funds for social and affordable housing projects – was one of Labor’s signature election promises but it is on the brink of failure unless the government can get the Greens on side.

The government will reintroduce the legislation that would set up the HAFF to parliament in this sitting fortnight but it is yet to reach a deal with the Greens, whose support it needs to pass the Bill through the upper house.

Senator Sarah Hanson-Young has accused Anthony Albanese of playing cute. Picture: NCA NewsWire / Martin Ollman

But the Greens say Labor has failed to meet their two demands – more guaranteed money for public and affordable housing, and committed funds to incentivise and coordinate a freeze on rent increases.

Senator Hanson-Young said on Tuesday the Greens would “obviously continue to talk to the government”.

“But at this point they are being stubborn. They do not want to move, they are not prepared to listen, they say they cannot fix it,” she said.

Housing Minister Julie Collins wrote to the Greens and other members of the Senate crossbench on Monday offering to make changes to the HAFF in a last-minute effort to resolve the impasse and get the Bill through parliament.

The government had previously said it would spend up to $500m each year from the returns generated by the $10bn investment vehicle on social and affordable housing, promising 30,000 new dwellings in its first five years.

The government on Monday offered to remove the $500m cap and instead guarantee a fixed amount of $500m would be spent from the fund’s returns each year from the 2024-2025 financial year.

Additionally, Ms Collins said this fixed amount of annual funding would be indexed against inflation from the 2029-2030 financial year.

Housing Minister Julie Collins has offered to make last-minute changes to the legislation. Picture: NCA NewsWire / Martin Ollman

The legislation would also be amended to allow for the yearly disbursement to be increased in the future by the treasurer and finance minister of the day through a special legislative instrument.

Ms Collins sent the letter to Mr Chandler-Mather and crossbench senators David Pocock, Lidia Thorpe, Jacqui Lambie and Tammy Tyrrell, urging them to support the HAFF.

In the letter, seen by NCA NewsWire, Ms Collins described the HAFF as a dedicated source of funding for social and affordable homes “in perpetuity” that would deliver long-term funding certainty for the sector.

Greens housing spokesman Max Chandler-Mather has been locking horns with the government. Picture: NCA NewsWire / Martin Ollman

But the Greens do not believe an annual spend of $500m is enough to build the social and affordable homes the country needs, as they call on the government to commit to $2.5bn a year instead.

Anthony Albanese earlier on Tuesday claimed his government had “no control” of rents and that the Greens were being “quite difficult” in an interview with the ABC.

The Prime Minister then told a Labor caucus meeting earlier Greens’ rent cap proposal “absurd and untenable” because it would effectively nationalise the private housing market.

Ms Collins claimed there was “data and evidence” that rental controls wouldn’t work and would put downward pressure on supply.

“What we need to do is add to supply. That’s what we’re doing,” she told the ABC.

Greens Housing spokesman Max Chandler-Mather said the government was clearly “abandoning” renters to “unlimited rent increases” and fixing a $500m annual spend from the HAFF’s returns would lock in six years of funding cuts in real terms.

“We’ve made it clear that we’re not going to pass this until there is movement on those two key issues. Really, the ball is in the government’s court here,” he said.

Originally published as Greens reject Labor’s last-minute amendments to $10bn housing fund