The Greens will not shift from their plan to sink the federal government's $10 billion housing fund, despite the housing minister offering a "guarantee" that it would pay for at least 1,200 affordable homes in each state and territory.
The federal government struck a deal with Senator Tammy Tyrrell to "take all reasonable steps" to fund the construction of a minimum of 9,600 affordable homes under the Housing Australia Future Fund, spread evenly across the states and territories.
The government says the fund is expected to provide 30,000 social and affordable homes in the next five years, and more into the future, but the deal would guarantee a minimum number in each state even if the fund fails to deliver any returns.
The deal with the Jacqui Lambie Network senator will net the government another two votes for its housing bill, but it still does not have enough support to pass the Senate, with the Greens remaining the key holdout.
Senator Tyrrell said the deal would double the number of affordable homes the fund would bring to Tasmania.
"Without this guarantee, we’d be looking at maybe 600 homes, depending on how the market performs," Senator Tyrrell said in a statement.
"Those extra 600 I've secured are enough to house every Tasmanian sleeping rough tonight.
"The only thing standing in the way of this now is the Greens Party."
But Greens housing spokesman Max Chandler-Mather says the federal government had come back to the negotiating table with a worsened position.
"They have come out today and actually cut the number of homes they are offering," Mr Chandler-Mather said.
"It's a clear admission their model is broken. It's pretty remarkable that their attempt at negotiations is to cut the number of homes they want to build from 30,000 to 9,600 ... and they're doing that because the stock market is incredibly volatile at the moment."
The Greens have demanded a much more ambitious program of reform, including limits to negative gearing, a much larger spend on housing and more support for renters.
A key concern of the Greens is that the $10 billion investment fund could end up contributing no money to housing in years that the fund did not return a profit — noting that was the case last year with the government's $250 billion sovereign wealth fund.
Greens leader Adam Bandt said his party would oppose the bill unless it was substantially amended.
The housing bill has also been opposed by the Coalition and would become the federal government's first major defeat in parliament if it was put to a vote or withdrawn.
Collins refutes claim fund would risk no homes being built
Speaking to the ABC on Thursday morning, Housing Minister Julie Collins said the minimum guarantee would give community housing providers some surety of pipeline, particularly in smaller jurisdictions.
Ms Collins said larger states would get "a lot more than the floor", refuting claims that it amounted to a reduction in ambition.
"All existing future funds provide consistent and reliable annual disbursements. I mean, we’re talking over a decade the average return is 9 per cent," Ms Collins said.
"A lower return in one year is usually balanced by greater returns in other years."
Mr Chandler-Mather said public funding for housing should be guaranteed, like it is for schools and hospitals, and not exposed to market fluctuations.
"The government, when they used to build public housing at scale, would invest large sums of public money building public and affordable housing. We're just saying they should be doing what governments used to do," he said.
Ms Collins said the government's deal with Senator Tyrrell would ensure no state or territory missed out on the fund.
"It's now time for all senators to back the $10 billion Housing Australia Future Fund — the single biggest investment from a federal government in social and affordable housing in more than a decade," Ms Collins said in a statement.
"Senators can't say they support more social and affordable housing but oppose this fund."
Ms Collins has argued that the fund is one piece of the government's housing support package, which includes an additional $2 billion in financing for social and rental housing delivered through Housing Australia and incentives in next week's budget for more build-to-rent housing.
The government's "National Housing Accord" with the states also set a nationwide goal for an additional 1 million homes in the next five years, and included another $350 million in federal funding towards building 10,000 rentals in that time.
In a letter to senators on Wednesday, housing ministers from every state and territory called upon the Senate to pass the bill as a matter of urgency.
"Delays to the passage of this important piece of legislation will put this delivery at risk — delaying Australians' access to safe and secure housing, delaying much-needed investments in acute housing needs and delaying action in the midst of serious housing challenges," housing ministers wrote.
