Coalition claims housing fund has built zero homes. Labor says they are delivering

The fund, which was delayed in the Senate for months due to opposition from the Greens and Coalition, is able to fund home building, purchase newly-built homes, renovate existing dwellings which would otherwise be uninhabitable or convert non-residential properties into homes.

Officials told Senate estimates hearings that the homes it has completed so far were purchased from other entities.

Under the legislation governing HAFF, “completed” means both construction of a dwelling, the purchase of an existing dwelling (to be used for social/affordable housing), the refurbishment of a dwelling and refurbishment of a dwelling that was considered uninhabitable.

Housing Minister Clare O’Neil said the figures showed the fund’s importance in providing affordable housing to thousands of Australians.

“By establishing the HAFF, the Commonwealth will steadily chip away at the shortage of social and affordable housing in Australia that is a result of neglect by previous governments,” she said in a statement.

The National Affordable Housing Alliance, a group whose membership includes ACOSS, the Property Council, Master Builders Australia and Homelessness Australia, said the HAFF should be extended.

“The HAFF is already delivering results and should be strengthened. With close to 1 million Australians projected to have their housing needs unmet by the private market by 2039, we cannot afford to abandon this vital initiative,” it said in a statement.

But the Coalition’s home ownership spokesman, Andrew Bragg, on Tuesday maintained nothing that had been built under the HAFF.

Bragg, who has criticised the program for supporting superannuation funds to sink money into housing, accused the government of overseeing a collapse in home construction since coming to office.

“The reality is that these homes already existed and all Labor has done is add to demand without enhancing supply,” he said.

“Labor has created no new housing stock under the HAFF and proven itself untrustworthy with the important job of rebuilding the great Australian dream of home ownership for Australians.”

Housing Industry Association figures released on Tuesday suggest a turnaround in the construction sector through this year.

New home sales in January lifted by 4.1 per cent over December. The number of approvals for new houses has also picked up, lifting by 6.8 per cent through 2024 compared to 2023.

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Approvals are down in both NSW and Victoria, with growth occurring across Queensland, South Australia and Western Australia.

“The rise in new home sales and new detached house approvals is consistent with expectations of an increase in the volume of homes commencing construction this year,” HIA economist Maurice Tapang said.

Last week’s cut in official interest rates is also expected to underpin a lift in home construction.

The ANZ-Roy Morgan weekly measure of consumer sentiment, released on Tuesday, showed a large lift in shopper confidence since the Reserve Bank sliced the official cash rate by a quarter of a percentage point.

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