Labor’s $10bn housing fund faces pressure over 40,000-home target
- Jul 22
- 2 min read
Labor’s major housing initiative is facing scrutiny after an audit warned the government may struggle to deliver its promised 40,000 social and affordable homes by 2029.
The Australian National Audit Office (ANAO) found there is still “considerable uncertainty” over whether the Housing Australia Future Fund can meet its deadline.
The $10 billion fund was a key election promise in 2022. It uses investment returns to support housing projects across Australia.
By April 2026, 1,432 homes had been delivered, including 762 newly built homes and 670 homes purchased from the private market.
The government expects around half of the 40,000-home target to be completed by mid-2028, with thousands more planned in the following two years. However, the auditor-general warned that delays and construction challenges could affect the timeline.
The audit also found the average government support for each home could exceed $770,000 over 25 years. Social housing projects were estimated to require more funding than affordable housing developments.
Treasury estimates ongoing payments to housing providers will cost about $12.2 billion over the coming years, with most funded through investment returns and an additional contribution from taxpayers.
The ANAO said the program was generally well designed but raised concerns about long-term risks, including whether the housing target can be achieved.
Housing Minister Clare O’Neil defended the scheme, saying the program was being delivered during a period of high construction and financing costs.
The 40,000 homes under the fund are part of Labor’s wider goal of building 1.2 million homes by 2029, a target the government is currently estimated to be behind by tens of thousands of homes.
Source : Sky News
More updates to come on AusNewsLanka.
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