Regional housing crisis: Nationals call for slice of $3.5b for regions

Independent MP Helen Haines and Nationals leader David Littleproud have vowed to ensure the regions don’t miss out on the government’s new housing package.

Political pressure is mounting on the Albanese government to guarantee a “fair share” of its new housing supply package goes to rural and regional Australia.

The $3 billion “New Home Bonus”, agreed during Wednesday’s national cabinet meeting, is being offered to states and territories who reach an updated target of 1.2 million new “well-located” dwellings over the next five years.

The bonus will be complemented by a new $500 million competitive fund designed to fast-track overdue land release, planning and approvals by paying for connection of essential amenities, such as water, electricity and sewerage.

Independent member for Indi Helen Haines welcomed the new policy but said the government must ensure equitable investment went to regional and rural Australia, “where these funds are needed the most”.

Independent MP for Indi Dr Helen Haines speaks at the Herald Sun Bush Summit in Wodonga with The Weekly Times editor James Wagstaff on Thursday August 17. Picture: Mark Stewart

“I am committed to holding this government accountable on behalf of our community in Indi and regional Australia more broadly. I will make sure this announcement is actually delivered and results in more houses in our towns,” she said.

The government plan aims to have the states build 200,000 extra new homes, from July 1 next year, above the existing one-million target agreed last year under the National Housing Accord.

The news comes as the Housing Industry Association predicts a decade-low 51,000 new houses will be built in Victoria next year, down 20,000 on 2021.

HIA senior economist Tom Devitt said increased and quicker planning could help fuel investment.

The regional housing crisis has compounded input costs and a worker shortage along the agriculture supply chain over recent years

Under pressure from a Greens party demanding increased renters’ rights to pass the government’s $10 billion Housing Australia Future Fund, Prime Minister Anthony Albanese described the “incentive payment” as the “most significant reforms to housing ­policy in a generation”, although full details are yet to be made public.

However, Nationals leader David Littleproud is concerned about what he says is a lack of caveats and stringent controls on how the money would be allocated and said funding should not be released unless planning was finalised in areas of greatest need.

Leader of the National Party David Littleproud at Parliament House in Canberra. Picture: Martin Ollman

“The regions are where market failure exists and there is a lack of private capital, because of a lack of market tension, so that’s where the funding should be going primarily,” he said.

Mr Littleproud also said extra controls were needed as housing programs had been “an abject failure” of state and local governments for decades.

“They hold the planning pen and they should be allocating to both suburbs and rural communities where there’s a significant shortfall, but that’s not what has been happening” he said.

“It’s not just Victoria, the states have got a chequered history of signing up with vagaries and the Commonwealth just hands money over, but we don’t get the outcomes we are asking for.

“We need to start seeing action before we cut the cheques.”

Prime Minister Anthony Albanese speaks during a press conference following a national cabinet meeting in Brisbane on August 16, 2023. Picture: Dan Peled

The new program comes two months after the federal government gave the states a $2 billion grant to immediately start refurbishing social and affordable housing.

A spokeswoman for the Andrews Victorian government said there was currently “no more important” issue in the state than housing.

“We want to deliver more housing options that give renters more protection, cut red tape and increase supply in established suburbs close to services, jobs and transport connections,” she said.

Meanwhile, Mr Albanese told the ALP national conference during a stump speech in Brisbane on Thursday that 40,000 low- and middle-income families would be able to buy their first home from 2024 with the cost of their initial deposit shared by the federal government.