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political reporter Stephanie Borys

Labor's major housing policy likely to face changes after opposition from Coalition, Greens

The housing fund was one of Labor's key election promises. (ABC News: John Gunn)

The federal government will likely be forced to change its housing plan, with both the Opposition and Greens raising concerns about the $10 billion fund.

Under the proposal, up to $500 million a year would be used to fund the construction of new homes, as well as repair and improve housing for Indigenous communities and provide additional crisis accommodation for women and children escaping domestic violence.

In its first five years, the government wants 20,000 social housing properties and 10,000 affordable homes for frontline workers such as police, nurses and cleaners to be built.  

The houses will be paid for through the returns on investment from a to-be-established $10 billion Housing Australia Future Fund.

The Greens do not believe the fund does enough to address housing pressures and has spoken to the government about the party's desire to support the bill, but only if amendments are made. 

It wants $5 billion a year offered to construct homes instead of the proposed $500 million, arguing that more homes than the proposed number need to built.

The Greens also want the government to reassess the $200 million set aside over five years for the repair, maintenance and improvements of housing for remote Indigenous communities and boost that figure to $1 billion over the first five years. 

Max Chandler-Mather says the Greens want to see bigger spends up front by the government. (ABC News: Nicholas Haggarty)

Their spokesperson for housing and homelessness, Max Chandler-Mather, said the government's current plan did not go far enough. 

"Labor's centrepiece housing legislation locks in permanent real-term cuts to housing funding, does nothing for renters, and will see the shortage of social and affordable housing grow, seeing the housing crisis get worse," he said. 

"A $5 billion investment every year could fund hundreds of thousands of good quality public homes over the next decade, clearing the wait lists and ensuring we actually tackle the scale of the housing crisis." 

The Greens also want to ensure that all homes built under the program meet minimum accessibility standards to support people with a disability. 

The legislation will be debated in parliament today.

The Coalition party room decided not to support the bill, but they will back other pieces of legislation relating to housing, including the creation of a housing council that will look at supply and affordability matters.

Sussan Ley says the fund would not immediately solve the current housing issue. (ABC News: Matt Roberts)

Deputy Liberal leader Sussan Ley argued the multi-billion-dollar fund would do little to address the housing issue.

"I don't see the government demonstrating how it will immediately solve the housing crisis, I just see another bucket of money off to one side spending priorities all wrong when it comes to where Australians want to see leadership from Anthony Albanese," she said. 

"I don't deny that there are housing pressures that Australians face, but how do we solve that? 

"Perhaps not by creating yet another off-budget vehicle of spending that pushes up inflation and interest rates and doesn't immediately solve the problem."

Help for renters

The Greens have also raised concerns about the increasing pressure on renters, and wants the government to provide assistance by supporting a national freeze on rents. 

While it is highly unlikely the government would support such a measure, the idea is not without precedent. 

Rents were frozen by the federal government in the 1940s, partly due to inflation, and the Victorian government introduced a rental freeze during the COVID-19 pandemic.

With cost-of-living pressures only increasing further, Mr Chandler-Mather said an increase to rent assistance was also warranted. 

"Freezing rent increases and doubling Commonwealth Rent Assistance will ensure we provide immediate relief to the millions of households in serious financial stress as a result of soaring rents," he said.

Housing Minister Julie Collins said the government would talk with politicians from across the divide.

"I am continuing to have constructive conversations with representatives from right across the parliament about this critical legislation," she said.

"I think Australians would be appalled if there was any politician in Australia who would want to stand in the way of more affordable and social housing."

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