Australia’s government broke a monthslong deadlock in the upper house of parliament to secure support for its signature housing policy that aims to build 30,000 new homes to tackle an accommodation crisis.
(Bloomberg) — Australia’s government broke a monthslong deadlock in the upper house of parliament to secure support for its signature housing policy that aims to build 30,000 new homes to tackle an accommodation crisis.
Under the Labor government’s plan, a A$10 billion ($6.4 billion) investment fund will be set up to generate returns that will then be pumped into constructing 30,000 new social and affordable homes over the next five years.
The left-wing Greens Party, which holds the balance of power in the Senate, announced Monday it would support the Housing Future Fund after having held out for more than five months. Greens leader Adam Bandt said he would back the fund after the government agreed to an additional A$1 billion for public and community housing.
Australia is facing a burgeoning housing crisis as both property prices and rents soar, fueled by a resumption of immigration post-Covid. That’s been exacerbated by a slowdown in construction across the nation due to labor shortages and rising materials costs.
The government had secured support from several independent senators for the legislation, but the Greens Party refused to back it without additional support for renters. The Greens repeatedly called for a national freeze or cap on rents, a measure that the government rejected.
The Greens said they would keep pushing for rental caps despite agreeing to pass the bill.
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