Labor’s $10bn housing affordability future fund is one step closer to passing the Senate after a deal with the Jacqui Lambie Network to support the bill.
The deal, which guarantees a minimum of 1,200 social and affordable houses in each territory and state over five years, adds pressure on the Greens, whose 11 Senate votes would now be sufficient to pass the bill.
It follows all eight state and territory housing ministers writing to senators on Wednesday urging them to pass the bill, warning that any obstruction will put delivery of new housing “at risk … delaying Australians’ access to safe and secure housing”.
The Albanese government is proposing a $10bn fund, the earnings from which will result in payouts of up to $500m a year to build 30,000 social and affordable homes over five years.
The Coalition opposes the fund, arguing it is inflationary, and the Greens have refused to bring the bill to a vote unless the government offers improvements, including up to $5bn of direct spending on housing and a national rent freeze.
The federal housing minister, Julie Collins, said the guarantee of 1,200 homes in each state and territory meant that “people across Australia [will] benefit from our government’s housing agenda, including the housing Australia future fund”.
“Under the previous government, some states and territories missed out on funding or didn’t get a share,” she said. “No state or territory should miss out on desperately needed homes.”
Senator Tammy Tyrrell, from the JLN, said the deal was “a massive victory for Tasmania” that ensured the state gets its “fair share” of new homes.
“Without this guarantee, we’d be looking at maybe 600 homes, depending on how the market performs. This guarantee doubles the amount of homes Tasmania will receive … regardless of the performance of the future fund.”
“The only thing standing in the way of this now is the Greens party … the question [Greens senators] Nick McKim and Peter Whish-Wilson need to answer is: will you vote for this bill, now it’s guaranteeing 1,200 affordable homes for Tasmania?”
On Thursday the independent senator, David Pocock, confirmed he is “not going to stand in the way of a $10bn fund” but repeated calls for payouts of $500m to be indexed and larger payouts in years of bumper returns.
Pocock said he was “frustrated with the government” because it “didn’t seem to want to budge on anything” and the issue had become “political rather than about policy”.
The letter, signed by the seven mainland Labor housing ministers and Tasmanian Liberal minister Guy Barnett, warned that “too many Australians are struggling to find a safe and affordable place to call home, with many experiencing financial stress as a result”.
“The housing Australia future fund is an important step towards providing more Australians a safe and secure home.
“It provides an ongoing stream of commonwealth funding to support the delivery of social and affordable housing.”
Despite urging the bill to be passed, the state and territory ministers also said they “respect the right of the Senate to negotiate outcomes to ensure the commonwealth delivers on its commitment to maximise benefits for vulnerable and homeless Australians”.
Rose Jackson, the NSW housing minister, told Guardian Australia the letter indicated “how important the [fund] is to all of us in delivering social and affordable housing”.
“If they can’t get it done then we’ll do everything we can at a state level, but the [fund] would deliver 16,000 to 19,000 houses in New South Wales – we need that,” she said.
The Greens housing spokesperson, Max Chandler-Mather, has said the party is concerned the bill requires the future fund to “gamble” on the stock market, but the party is prepared to negotiate in return for more guaranteed investment in housing.
