Anthony Albanese pays $3bn ransom to secure support for housing Bill

The Prime Minister is one step closer to delivering on a key election promise after a very costly move to secure support from one group.

The Albanese government has struck a deal in a bid to break a senate standoff over its signature $10bn social and affordable housing fund.

A vote on the Housing Australia Future Fund was sensationally delayed for the second time after the Greens teamed up with the Coalition to push back consideration on legislation until October, claiming it did not go far enough.

But in a shock turn of events, the Greens on Monday announced it would support the Bill in return for an additional $1bn to allocated to the National Housing Infrastructure Facility “to build more homes for Australians who need them”.

It’s on top of the $2bn the federal government injected into social housing in July.

Greens leader Adam Bandt and Prime Minister Anthony Albanese have struck a deal. Picture: NCA NewsWire / Martin Ollman

Greens leader Adam Bandt welcomed the additional funding but vented his frustration the government would not compromise on rent caps or rent freezes.

“Nine months ago, the government refused to guarantee a single dollar for housing, and renters barely even registered in the national debate,” Mr Bandt told reporters at Parliament House on Monday.

“The Greens have secured $3bn directly spent on housing, and renters are now a vocal social movement that won’t be ignored.

“One thing is very clear now, or two things are clear, pressure works … Our focus will now shift to securing rent caps and a rent freeze.”

The HAFF – an investment vehicle to raise funds for social and affordable housing projects – was one of Labor’s signature election promises.

The Housing Australia Future Fund is now expected to pass the Senate this week. Picture: NCA NewsWire / Daniel Pockett

It would invest $10bn with the Future Fund and use the earnings, spending a minimum $500m a year, to build at least 30,000 dwellings in the first five years.

Anthony Albanese confirmed the deal will now mean the HAFF will pass the Senate this week. In a show of good faith, the government gave up its first question on the floor of the house to Mr Bandt.

The Prime Minister thanked the minor party and senate crossbenchers Jacqui Lambie, Tammy Tyrrell and David Pocock for their support.

“I thank the leader of the Greens for the constructive discussions that we have had,” he said during question time on Monday before turning on the opposition.

“The Coalition are obsessed with just saying no to everything. They are irrelevant in Australian politics today.”

Housing Minister Julie Collins said the HAFF was the “single biggest investment” from a federal government in more than a decade.

Mr Albanese can now put his threat of a double dissolution to bed. Picture: NCA NewsWire / Martin Ollman

The Greens had wanted the government to spend at least $2.5bn a year on social and affordable housing in addition to co-ordinating a rent freeze, or rent cap, with the states.

But Mr Albanese repeatedly stressed he was not for turning and last month reintroduced the HAFF to the lower house in a bid to secure a double-dissolution trigger.

Last month, the government announced a deal with the states to set a new target to build 1.2 million homes over five years.

Greens housing spokesman Max Chandler-Mather said the deal did not mean the minor party was walking away from renters’ rights.

“If it's the case that it’s going to take a federal election and Labor losing some hundreds of thousands, if not millions, of renters for them to learn they cannot ignore the one-third of the country that rents, so be it,” the Queensland MP said on Monday.

“Frankly, if we aren’t able to push Labor to freeze rent increases, they will learn a very harsh lesson about what happens when you ignore the one-third of this country who rents.”

Ms Collins said the government understood that renters were doing it tough, as evidenced by putting the issue on the national cabinet agenda.

“We understand that ultimately the answer for rent is more supply of houses of every type, but particularly rental homes,” she said.

“This fund getting through parliament means an additional 30,000 social and affordable rental homes in the first five years of the fund.”