Opposition push for audit of Labor’s $10bn Housing Australia Future Fund

The Albanese government’s auditor is considering an investigation into Labor’s $10bn Housing Australia Future Fund after claims from the Coalition the fund was not performing properly.

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The government’s auditor is considering an investigation into Labor’s $10 billion Housing Australia Future Fund after claims from the Coalition that the fund was not performing properly.

The Australian National Audit Office said in a statement that it was “considering” a review of the HAFF, which was established in November 2023 and appears to be behind on its targets.

The Labor government is seeking to use the HAFF to help achieve its target of 1.2 million new homes within the next four years, which leaked Treasury documents revealed was unlikely to happen.

Treasurer Jim Chalmers and Housing Minister Clare O’Neil say the target is still achievable, but opposition productivity and housing shadow minister Andrew Bragg has claimed that after 20 months, the HAFF had bought only 300 homes and may have built only 17 houses in the ACT.

Under the rules of the HAFF, the government is to transfer $500m in total from the fund’s Special Account to its Payments Special Account, the Federation Reform Fund, and the Housing Australia Special Account to pay for grants or loans relating to social housing or affordable housing.

Senator Bragg wrote to the Audit Office noting that only $223m had been spent as of March 31 this year.

“It appears almost $270m was rushed out the door in the last three months of the recent financial year. Or perhaps it wasn’t spent. We simply do not know whether the remaining $270m has been expended,” he said.

“Either it was rushed out to buy houses at inflated costs or it wasn’t spent by 30 June, 2025.”

Senator Andrew Bragg during a committee hearing at Parliament House in Canberra. Picture: NCA NewsWire / Martin Ollman

Senator Bragg insisted the auditor do a performance review to ascertain where the remaining $277m of allocated funds had been spent. He said the HAFF was a “shocking boondoggle”.

Labor says it has been constrained because of delays caused by Coalition and Greens opposition in parliament to the HAFF; it says it is now delivering long-term, reliable funding to help address Australia’s social housing shortfall.

Earlier this month, Ms O’Neil said the government’s commitment to deliver 55,000 social and affordable homes nationally was on track, with 1535 new homes to be built around NSW across 14 projects, representing almost $1.2bn of investment.

“We’re working with the NSW government and community housing providers to create a pipeline of homes that will make a real difference for decades to come,” she said.

Peak home building body Housing Industry Association backed calls for a performance audit. It has consistently called for bipartisan support and a “long-term commitment from all sides of government” to the HAFF extending beyond a single election cycle.

“It is acknowledged, due to a range of factors, that the program hasn’t delivered homes as fast as we would’ve liked ... we would support a performance audit,” HIA managing director Jocelyn Martin said.

“Equally there is a number of improvements we think could support a more effective operation of the scheme.

“We have sought a long-term commitment of funding social housing, programs such as the HAFF to provide positive inroads into improving housing outcomes. This has included a tripling of the current investment in the HAFF to boost supply of social, community and affordable housing over the long term,” she said.