Funding to tackle the housing crisis will make a life-changing difference to people desperately in need of accommodation, according to housing campaigners who welcomed news of a multi-million pound budget injection to build homes more quickly.
About $1 billion will go toward transitional and crisis housing for youth, as well as women and children escaping domestic violence.
Grants provided under the National Housing Infrastructure Fund to build these homes will increase from $175 million to $700 million.
The funds will help those most at risk, Homesolving Australia chief executive Kate Colvin said.
The federal government will invest $11.3 billion in housing initiatives when Treasurer Jim Chalmers delivers the budget on Tuesday, with support from premiers and senior ministers.
Chalmers (R) said a substantial boost to housing supply would be a priority feature of Tuesday’s budget.
About $1 billion will go toward transitional and crisis housing for youth, as well as women and children escaping domestic violence. The photo shows a tradesman working on a construction site.
“New resources to provide transitional and crisis housing to women and children fleeing domestic violence and young people at risk of homelessness will make a life-changing difference for every family and young person who will now have a safe home” , he claimed.
Future funding must address the “rental gap” between the amount of support available and the cost of housing, after research showed 44 per cent of young people remain homeless after receiving support, chief executive said from the Community Housing Industry Association, Wendy Hayhurst.
Housing providers who offer rentals to young people face a financial disadvantage due to their lower potential income.
“Community housing providers want to be part of the solution and work with government to deliver safe housing and a better future,” Hayhurst said.
The government will also spend $1 billion building the roads, sewers, power, water and community infrastructure needed for more housing.
Federal funding for homelessness services and social housing will double to $400 million a year and be matched by the state and territories, with National Cabinet also agreeing a five-year National Agreement on social housing and people homelessness worth $9.3 billion.
Prime Minister Anthony Albanese said the injection of funds would help boost construction nationwide.
‘It’s not about a suburb, a city or a state. “It is a challenge facing Australians everywhere and needs action from all levels of government,” he said.
Chalmers said a substantial boost to housing supply would be a priority feature of Tuesday’s budget.
It comes as the federal government pledges to work with higher education providers on new rules to increase student accommodation.
This follows an earlier Budget announcement of more than $90 million to increase the number of trade and construction workers, including the provision of an additional 20,000 free TAFE places.
Education Minister Jason Clare reiterated the importance of the international education sector to the Australian economy.
Prime Minister Anthony Albanese (pictured centre) said the injection of funds would help boost construction nationwide.
“We need to ensure its sustainability and, in part, that means we need more purpose-built student accommodation,” he said.
More than $25 billion has already been planned over the next decade in a bid to build 1.2 million homes by the end of 2030.
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