The Albanese Government’s second Budget will enable billions of dollars of investment in new social and affordable housing, incentivise new long-term rentals and provide additional support for low-income renters during difficult times.
As part of our plan to create more opportunities for more Australians to get ahead, our 2023-34 Budget builds on our existing housing agenda to help more people find a safe and affordable place to call home.
Building more homes
The Government is enabling an additional $2 billion in investment for more social and affordable rental housing by increasing the guaranteed liabilities of the ³Ô¹ÏÍøÕ¾ Housing Finance and Investment Corporation (NHFIC).
This boost from $5.5 billion to $7.5 billion, effective July 1, will enable NHFIC to support the building of more social and affordable homes by providing lower cost and longer term finance to community housing providers through the Affordable Housing Bond Aggregator.
The Government is also offering incentives to increase the supply of rental housing by improving taxation arrangements for investments in build-to-rent accommodation.
Helping Australians with the cost of rent
In this Budget, the Government is helping around 1.1 million Australians with the rising cost of rent by increasing the maximum rates of Commonwealth Rent Assistance by 15 per cent at a cost of $2.7 billion over five years.
These new Budget measures complement the decisions taken by ³Ô¹ÏÍøÕ¾ Cabinet to develop reforms to increase housing supply and affordability, and put renters’ rights front and centre, with states and territories committing to work to strengthen renters’ rights. These reforms will continue to be progressed through the Housing and ³Ô¹ÏÍøÕ¾lessness Ministerial Council.
Helping more people into home ownership sooner
The Government is also helping more people into home ownership sooner by expanding eligibility for the ³Ô¹ÏÍøÕ¾ Guarantee Scheme.
From July 1, the First ³Ô¹ÏÍøÕ¾ Guarantee and Regional First ³Ô¹ÏÍøÕ¾ Buyer Guarantee will be available to any two eligible borrowers, such as friends and siblings, expanding it beyond spouses or de facto partners. They will also be available to non-first home buyers if they haven’t owned a property in Australia in the last 10 years, supporting those who have fallen out of homeownership, often due to financial crisis or relationship breakdown. Australian Permanent Residents, in addition to Australian citizens, will be eligible for the ³Ô¹ÏÍøÕ¾ Guarantee Scheme.
The Family ³Ô¹ÏÍøÕ¾ Guarantee will be available to eligible borrowers who are single legal guardians of children such as an aunt, uncle or grandparent, in addition to single natural and adoptive parents.
These changes build on last year’s increase in the number of places available and the establishment of the Government’s new Regional First ³Ô¹ÏÍøÕ¾ Buyer Guarantee.
Funding for homelessness services
The Government is providing an extra $67.5 million to states and territories, through the ³Ô¹ÏÍøÕ¾ Housing and ³Ô¹ÏÍøÕ¾lessness Agreement in 2023-24, to help tackle homelessness. This funding will assist homelessness services as the Government works to develop a new ³Ô¹ÏÍøÕ¾ Housing and ³Ô¹ÏÍøÕ¾lessness Plan.
These new Budget measures support the Albanese Government’s ambitious housing agenda, which includes:
- The $10 billion Housing Australia Future Fund, the single biggest investment in social and affordable housing by a Federal Government in more than a decade, which will support the delivery of 30,000 social and affordable homes in its first five years.
- A ³Ô¹ÏÍøÕ¾ Housing Accord, setting out a shared ambition to build one million new, well-located homes over five years from 2024.
- An additional $350 million over five years from 2024-25 to support funding of 10,000 affordable homes under the Accord.
- Widening the remit of the ³Ô¹ÏÍøÕ¾ Housing Infrastructure Facility, making up to $575 million available to invest immediately in social and affordable rental homes.
- The Help to Buy program, which will reduce the cost of buying a home.
