Delivering the National Housing Accord

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The Australian Government has agreed to a National Housing Accord (Accord) with states and territories, local government, institutional investors and the construction sector.

National Housing Accord

The Accord includes an initial aspirational target agreed by all parties to build one million new well‑located homes over 5 years from mid‑2024. The Commonwealth and states and territories agreed to update this target at National Cabinet in August 2023 to 1.2 million new well‑located homes over 5 years from mid‑2024. National Cabinet also endorsed the Commonwealth providing $3.5 billion in payments to state, territory and local governments to support the delivery of new homes towards this target.

The Accord is one component of the government’s broader housing agenda which also includes significant funding for social and affordable housing and additional support for renters and homebuyers.

As part of the Accord the Commonwealth has committed $350 million over 5 years from 2024‑25 to support the delivery of 10,000 affordable homes. State and territory governments have agreed to build on this commitment to support delivery of up to an additional 10,000 affordable homes. This enables delivery of a combined total of up to 20,000 affordable homes under the Accord.

States and territories have agreed to build the following affordable homes:

 

State

Allocation
New South Wales 3,100
Victoria 2,546
Queensland 2,049
Western Australia 1,076
South Australia 700
Tasmania  220
Northern Territory 96
Australian Capital Territory 175

Implementation schedules

The Commonwealth and all states and territories have developed implementation schedules which detail the actions each jurisdiction will take to help achieve the commitments made under the Accord:

The Accord’s implementation schedules are tailored to the specific circumstances of each jurisdiction, recognising for example that each state and territory is at a different stage in making improvements to planning, zoning and land release systems.

They include the following key Commonwealth commitments:

  • The Commonwealth will provide $3.5 billion in payments to state, territory and local governments to support the delivery of new homes towards the National Housing Accord target.
  • The Commonwealth has provided a one‑off $2 billion payment to states and territories through the Social Housing Accelerator payment to deliver a permanent increase in the stock of social housing.
  • The Commonwealth will provide $350 million over 5 years from 2024 to support an additional 10,000 affordable homes to be delivered at an energy efficiency rating of 7 stars or greater.
  • The Commonwealth will provide concessional loans and grants through Housing Australia to support more social and affordable housing.
  • The Commonwealth will work with Community Housing Providers and other relevant not‑for‑profit housing providers to ensure achievement of targets for social and affordable housing are met.
  • The Commonwealth is undertaking a whole‑of‑government process to identify surplus Commonwealth land that could be used to support more housing and will update the Council on Federal Financial Relations in early 2024 on progress.  
  • The Commonwealth Minister for Housing commissioned a review from the interim National Housing Supply and Affordability Council (Council) on 9 May 2023 into barriers to institutional investment, finance and innovation in housing. The Council released its Report on 8 September 2023 which can be found on the Council’s website.

States and territories have committed to:

  • undertaking expedited zoning, planning and land release to deliver the joint commitment on social and affordable housing in well‑located areas.
  • delivering their allocation of up to 10,000 affordable homes.
  • working with Local Governments to deliver planning and land‑use reforms that will make housing supply more responsive to demand over time.
  • supporting the building of a strong and sustainable Community Housing Provider sector.
  • ensuring achievement of targets for social and affordable housing are met.

The implementation schedules represent actions agreed at a point in time and will be reviewed on an annual basis to reflect new initiatives over the period of the Accord.

Parties to the Accord

  • Commonwealth
  • States and territories
    • New South Wales
    • Victoria
    • Queensland
    • South Australia
    • Western Australia
    • Tasmania
    • Northern Territory
    • Australian Capital Territory
  • Australian Local Government Association
  • Superannuation funds and associations
    • AustralianSuper
    • Australian Retirement Trust (ART)
    • HESTA Super Fund
    • Aware Super
    • Cbus Super
    • Colonial First State
    • UniSuper
    • RestSuper
    • Insignia
    • TelstraSuper
  • Institutional investors and asset managers
    • BlackRock
    • IFM Investors
  • Residential development, building and construction industry peak bodies
    • Master Builders Australia
    • Housing Industry Association
    • Property Council of Australia

National Cabinet announcements

Extension of the one million homes target

On 16 August 2023, National Cabinet agreed to an ambitious new national target to build 1.2 million new well‑located homes over 5 years, from 1 July 2024. This is an additional 200,000 new homes above the original National Housing Accord one million homes target agreed by states and territories last year.

To support achievement of the target the Government announced the following measures:

New Home Bonus

The $3 billion New Home Bonus program aims to provide performance‑based funding to states and territories that achieve more than their share of the one million well‑located homes target under the National Housing Accord.

The Bonus will incentivise states and territories to undertake the reforms necessary to boost housing supply and increase housing affordability, making a positive and practical difference for Australians planning to buy a home.

Housing Support Program

The $500 million Housing Support Program is a competitive funding program for state and territory and local governments to kick‑start housing supply in well‑located areas.

The program will provide targeted activation payments for initiatives such as connecting essential services, amenities to support new housing development, or building planning capability.

National Planning Reform Blueprint

National Cabinet also agreed to a National Planning Reform Blueprint to outline planning, zoning, land release and other measures to improve housing supply and affordability.

The Blueprint’s measures include:

  • Updating state, regional, and local strategic plans to reflect housing supply targets.
  • Promoting medium and high‑density housing in well‑located areas close to existing public transport connections, amenities and employment.
  • Streamlining approval pathways.