The federal budget will include measures to deliver more properties to build, rent and buy under the Homes for Australia plan in addition to more than $25 million for new housing initiatives.
The national cabinet agreed to the measures following a meeting on Friday, including the prime minister, premiers and chief ministers.
Anthony Albanese said Tuesday’s budget would mean “less talk and more homes” to clear the way for more tradies and fewer barriers to construction.
“This isn’t about one suburb or one city or one state. It’s a challenge facing Australians everywhere and it needs action from every level of government,” the PM said.
The new measures include $1 billion under the National Housing Infrastructure Facility for crisis and transitional accommodation to support women and children escaping violence, as well as youth; and $9.3 billion over five years for a national agreement on social housing and homelessness (including doubling federal homelessness funding to $400 million every year to be matched by the states and territories).
“We are [also] encouraging states and territories to kick‑start building by providing an extra $1 billion to help fund the roads and services new homes need, and for new social housing,” the PM said.
The $1 billion budget line item to deliver more housing sooner will include money for states and territories to build community infrastructure to meet new supply. This includes infrastructure for sewers, energy and water.
Labor has responded to the challenge of a nationwide housing crisis with the goal of 1.2 million new homes built over the next decade.
Treasurer Jim Chalmers said housing was a government priority and a big focus of the 2024-25 budget.
“We’re delivering billions more dollars in the budget to build more homes across the country because we know that to address this housing challenge, we need to boost supply,” Chalmers said.
“Australia needs to build more homes more quickly and that’s what this substantial investment will help to deliver.”
Earlier this month the government announced $90.6 million would be spent on boosting the number of construction workers by creating 20,000 fee-free TAFE places.
Labor’s 10-year housing policy has already committed a total of $2 billion to finance more social and affordable rental homes; $2.7 billion to increase by 15% the rate of commonwealth rent assistance; $5.5 billion for the Help to Buy scheme; $3 billion to incentive states and territories to build more homes under the New Homes Bonus; $2 billion to build 4,000 new social homes across Australia under the Social Housing Accelerator; and $10 billion to build 30,000 social and affordable rental homes under the Housing Australia Future Fund.
Housing Minister Julie Collins said the Homes for Australia plan would accelerate the rate of new housing construction across the country and ease the pressure on people doing it tough.
“Building more homes is the best way to address Australia’s housing challenges, and this is exactly what Homes for Australia will deliver,” Collins said.
“We’re working across government, and with other tiers of government, to achieve the ambitious national target of 1.2 million new homes by the end of the decade.
The government coincided with its housing budget announcement with news that it would also call upon the university sector to increase its supply of student accommodation for domestic and international students.
This decision was made to reduce pressure on the private rental market and “keep the great Australian dream” to own a home within reach.
Education Minister Jason Clare said that because the international education sector was so important to Australia and its economy, new regulations to offer purpose‑built housing to support foreigners who chose to come to Australia to study would make the system a sustainable one.
“We need more purpose‑built housing to support students in higher education and that’s what these reforms, developed in consultation with the sector, will help to drive,” Clare said.
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