House of Representatives

Second Reading Speech

Ms COLLINS (Franklin - Minister for Housing, Minister for Homelessness and Minister for Small Business)

I move:

That this bill be now read a second time.

The Treasury Laws Amendment (Housing Measures No. 1) Bill 2023 forms part of the Housing Legislative Package, which delivers on the government's ambitious housing election commitments announced as part of the Safer and More Affordable Housing measure in the October 2022-23 budget.

The government publicly consulted on the package from 19 December 2022 to 11 January 2023. Forty-six written submissions were received, and three consultation sessions held (two with state and territory officials, and one with community housing providers).

This bill amends the National Housing Finance and Investment Corporation Act 2018 (NHFIC Act) to rename NHFIC to Housing Australia. The NHFIC Act established NHFIC to improve housing outcomes for Australians and commenced operation on 30 June 2018.

NHFIC's responsibilities include the operation of the Affordable Housing Bond Aggregator, capacity building for community housing providers, administering the government's Home Guarantee Schemes and the $1 billion National Housing Infrastructure Facility.

The National Housing Infrastructure Facility was expanded in November 2022 to allow financing in support of social or affordable housing projects in addition to financing for underlying critical infrastructure projects.

Housing Australia will continue to operate as a corporate Commonwealth entity governed by an independent board, reporting to the Minister for Housing. It will be directed in the performance of its functions by an investment mandate direction, issued by the Minister for Housing.

In addition to the new responsibilities set out in the Housing Australia Future Fund Bill, Housing Australia will continue to administer the Affordable Housing Bond Aggregator, the National Housing Infrastructure Facility and the Home Guarantee Schemes. This will allow Housing Australia to build upon the NHFIC's successes whilst supporting the government to deliver on new key housing commitments.

The bill also makes consequential amendments to reflect the change of the NHFIC to Housing Australia and ensure consistency across Commonwealth legislation.

This bill also streamlines the functions of Housing Australia and establishes an annual review mechanism for the National Housing Infrastructure Facility. This will allow the government to regularly review the facility's performance against the objective of increasing and accelerating the supply of new social and affordable housing.

The bill also extends the legislated Commonwealth guarantee, which underpins the NHFIC bonds that enable low-cost finance for community housing providers, until 30 June 2028. Extending the guarantee provides certainty to the community housing sector and investors in debt securities issued by the bond aggregator.

Finally, the bill makes a number of further consequential amendments to legislation in the Finance and Treasury portfolios to enable the effective operation of the Housing Australia Future Fund.

Full details of the measure are contained in the explanatory memorandum.

Debate adjourned.