Bringing together states, territories, investors, and the government, the National Housing Accord will supply one million new homes over five years from 2024.
Under the Accord, the government will provide $350 million across five years to fund the policy.
The government notes the ongoing availability of payments over the longer term can deliver an additional 10,000 affordable dwellings.
States and territories will match the government, supporting up to an additional 10,000 affordable homes.
This will increase the dwellings that can be delivered under the Accord when combined with the Government to 20,000 per year.
The Housing Accord forms part of $7.5 billion, five-point plan designed to deliver targeted cost-of-living relief.
Treasurer Jim Chalmers said the National Housing Accord will for the first time align the efforts of all levels of government, institutional investors, and the construction sector to help tackle the nation’s housing problem - all without adding to inflation.
“The Accord recognises most of this supply needs to come from the market with government playing a key role in enabling and kick-starting investment,” Mr Chalmers said.
“We want more Australians to know the security of decent housing and more Australians realising the aspiration of home ownership.”
PRD Chief Economist Dr Asti Mardiasmo said if the scheme targets social and affordable housing, and will specially be allocated to those on housing lists, it plays very little in alleviating supply in the private market.
"The average joe competing for a four-bedroom house in a desirable suburb will still be fiercely competing for that property," Dr Mardiasmo told Savings.com.au.
To further assist in adding more supply to the housing market, the government will encourage older Australians to downsize their homes to free up supply for younger families.
This will see the extension of the exemption of home sale proceeds from pension asset testing from 12 months to 24 months, providing more time to purchase, build or renovate a new home before their pension is affected.
Further, the government is expanding access to downsizer superannuation contributions for people aged 55 to 59.
Increasing social and affordable housing
The government will establish the Housing Australia Future Fund to provide 30,000 homes in its first five years - 20,000 new social housing dwellings and 10,000 homes for frontline workers.
The Government notes 4,000 of those dwellings will be allocated to women and children impacted by family and domestic violence and older women at risk of homelessness.
Further under the Housing Australia Future Fund, the Government will also provide 10,000 new affordable housing dwellings, specifically for frontline workers.
Minister for Housing Julie Collins said a National Housing Supply and Affordability Council will be created to deliver independent advice to Government on ways to increase housing supply and affordability.
“One of the Council’s key pieces of work will be to advise on the implementation of a National Housing and Homelessness Plan, which will be developed in consultation with key stakeholders and set out what is needed to make it easier to buy a home, easier to rent, and reduce homelessness,” Ms Collins said.
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