This week’s Federal Budget signals a willingness to make housing a policy priority. The $47 billion housing package, including substantial tax reforms supporting home ownership for first home buyers and long overdue support for young people trapped in homelessness, represents real momentum and repositions housing as a social necessity rather Repositions housing as a social necessity rather than a vehicle for wealth creation. We welcome these changes.
But as an organisation that supports a growing number of people experiencing homelessness and housing stress because rents are unaffordable and appropriate rental options are increasingly out of reach, we need to keep asking the hard questions. Australia needs a housing system that works across the full housing and people continuum – from crisis and social housing through to affordable rental and ownership. From lone person households to life-long renters through to families living and working in regional and remote areas.
There are some tensions in the proposed policy settings and the impact they may have on rental supply and low-income renters. If existing rental properties move into owner occupation without sufficient replacement supply, people already struggling in the private rental market may face even greater pressure.
Our recent research with Cushman & Wakefield found that around 7% of Australians aged over 70 are private renters, with more than 40% experiencing housing stress. By 2031, the number of renters aged 65 and over is projected to increase by 95%. These Australians are not first home buyers preparing for a 30-year mortgage; most will continue to need secure, affordable rental housing.
The opportunity in reforming our housing system won’t be met by pitting first home buyers and renters against each other. We need to grow Australia’s overall housing system fairly, increasing pathways into ownership while protecting and expanding affordable rental options for those who will continue to rely on them.
With so many households waiting for social housing, tax reform and home ownership measures must sit alongside sustained investment in social and affordable housing supply. Our research found that meeting Australia’s social housing needs by 2041 will require approximately 640,000 new dwellings and $183 billion in investment. That’s $61 billion across each forward estimates cycle from now until 2041.
We welcome changes to the superannuation performance test and the removal of unintended barriers to investment, including in social and affordable housing. Over the past five years, Haven Home Safe has strengthened its ESG+ Impact strategy and reporting to build a robust, commercially viable organisation ready to partner with investors and institutional investors seeking measurable social and environmental impact.
Community housing providers are increasingly reliant on stable, long-term policy settings, including the Housing Australia Future Fund and government-backed financing mechanisms. To provide the certainty needed for the sector to plan, invest and deliver at scale, these commitments must endure beyond annual budget cycles and shifting party politics.
Housing delivery takes years. Uncertainty alone can slow investment before any formal policy change occurs. Community housing providers need confidence that Federal Government support will be bi-partisan and ongoing as we take on the long-term structural and systemic challenge of housing insecurity. The future housing pipeline remains fragile because neither the community housing sector nor the private development market can solve this challenge in isolation. Community housing providers cannot simply replace government-enabled capital with fully commercial returns, just as private and institutional developers alone cannot deliver the scale of affordable housing supply required at speed. Australia needs the full housing ecosystem working together under a common vision that housing is essential national infrastructure — supported by all levels of government through long-term investment, fair tax reform and stable policy settings.
While this budget takes positive steps toward a more accessible housing system, Haven Home Safe will still advocate for a stronger commitment to sustained and continual investment in social and affordable housing. This is what will get us closer to inter-generational equity. Without it, Australia risks improving access for some while deepening insecurity for others.
