Housing Australia Future Fund bill looms as Anthony Albanese’s first defeat

Anthony Albanese’s $10bn Housing Australia Future Fund is on track to be rejected by key Senate crossbenchers in the government’s first major legislative defeat.

Anthony Albanese’s signature housing policy would underwrite 30,000 new affordable homes and anchor his government’s pledge to build one million homes. Picture: David Swift

Anthony Albanese’s $10bn Housing Australia Future Fund is on track to be rejected by key Senate crossbenchers, whose firming opposition is expected to deliver the federal government’s first major legislative defeat.

ACT independent David ­Pocock, the Greens and the ­Jacqui Lambie Network are still opposed to Labor’s signature housing policy underwriting 30,000 new affordable homes and anchoring the government’s pledge to build one million homes.

David Pocock is calling for the HAFF’s proposed $500m annual spending to be scrapped. Picture: Gary Ramage

The $15bn National Reconstruction Fund, which has been stalled in the Senate as the government tries to lock in the one vote it needs to pass the manufacturing fund, is likely to pass the upper house this week.

The Greens partyroom is ­expected to meet on Monday morning to discuss the housing fund and finalise its position on Labor’s safeguard crediting climate legislation, which remains halted in the House of Representatives and needs to pass through the Senate this week.

The Greens, which are under pressure from former leader Bob Brown and others to hold the line over their demand to stop new coal and gas projects, last week raised the potential of more sitting days if they needed extra time to deliberate.

Greens housing spokesman Max Chandler-Mather and Senator Pocock are calling for the HAFF’s proposed $500m annual spending to be scrapped amid concern the investment will not cover projected shortfalls in ­social and affordable housing.

The Greens are threatening to vote against the bill unless Labor increases its housing budget and inserts provisions for renters, and are preparing to launch a doorknocking campaign against the bill if negotiations are pushed out to April.

Jacqui Lambie will vote against the housing fund if it doesn’t commit 1200 of 30,000 promised homes to be built in their home state. Picture: Gary Ramage

“With organisations and political parties from across the political spectrum all lining up to criticise Labor’s flawed plan and support more investment in public and affordable housing, the government has a legacy-defining choice to make,” Mr Chandler-Mather told The Australian.

Tasmanian senators Jacqui Lambie and Tammy Tyrrell will vote against the housing fund if it doesn’t commit 1200 of 30,000 promised homes to be built in their home state. Senator Tyrrell said it was time for Labor to “decide if Tassie deserves their fair share”. “We saw stats last week that said Tasmania’s rate of homelessness is growing twice as fast as any other state or territory. It just breaks my heart,” she said. “I’ve made it very clear that 1200 homes is the deal-breaker for my vote.”

Senator Pocock is urging the government to increase its capital investment to $20bn amid concern the bill lacks ambition and will not cover projected ­social housing shortfalls.

Housing Minister Julie Collins is amplifying government spending on other programs to crossbenchers, including the $1.6bn National Housing and Homelessness agreement, $325m Help to Buy scheme and $350m for 10,000 affordable homes under the national housing accord.

“Standing in the way of legislation for the Housing Australia Future Fund means standing in the way of 30,000 new social and affordable rental homes,” she said.

Climate Change Minister Chris Bowen, who has led safeguard mechanism negotiations with Greens leader Adam Bandt, on Sunday said “every day is another day closer to this being ­determined by the parliament”.

Mr Bowen said he has “had some very good discussions across the board with the crossbench” over Labor’s signature ­climate policy, which anchors the government’s 2030 emissions ­reduction target. The upgraded safeguard mechanism forcing the 215 biggest-emitting facilities to slash emissions by nearly 5 per cent each year out to 2030 is due to start from July 1.

Mr Bowen, who will meet crossbenchers on Monday to finalise amendments and broader reform commitments, hopes for a final vote in the Senate by Thursday.

Australian Industry Group chief executive Innes Willox said the clock was ticking for the parliament to rubberstamp the safeguard mechanism: “Parliament won’t sit in April and the budget will dominate in May. Hundreds of facilities need clarity as soon as possible on the new rules that will apply to them from 1 July”.