Dutton launches $5bn housing promise

The Coalition has announced a major $5bn housing policy which it says could unlock 500,000 homes by enabling critical infrastructure such as water, power, sewerage and roads.

In a direct attack on Labor’s National Housing Accords which incentivise states and territories to build 1.2 million new homes by July 2029, Peter Dutton will announce a Housing Infrastructure Program (HIP) on Saturday.

The “use it or lose it” funding will help local councils fast-track water, power, sewerage, and access roads through grants and concessional loans, with the Coalition claiming detached housing with backyards is the “cheapest form of housing for first home buyers”.

Approved projects will need to begin progress within 12 months of the contract date, or the funding will be terminated.

“We know there are hundreds of greenfield sites across the country ready for development, but progress has been stalled due to a lack of funding for essential enabling infrastructure,” a statement announcing the policy said.

“Our approach is focused on investing in enabling infrastructure to unlock the supply of shovel-ready new housing developments.”

The claim will likely be contested by state governments, with NSW Premier Chris Minns repeatedly flagging Sydney is unable to sustain more housing on its western fringe due to the costs associated with ensuring adequate infrastructure around the sites.

Instead the state government has given local councils housing targets, and changed zoning laws to encourage medium and high density builds in well-located areas known as Transport Oriented Development areas.

However the Coalition is expected to point to research from the Centre for International Economics conducted in August 2024 which states the sale cost of a Greenfield home is $790,000, compared to $905,000 for a mid-rise apartment, and $860,000 for a high-rise apartment.

The research says this is due to the increased costs of delivering in-fill apartments, which increased by more than 6 per cent between 2018 to 2023 on four to nine storey apartments.

On Saturday, Mr Dutton will also announce a 10-year freeze on implementing further changes to the National Construction Code, which he states have added costly compliance burdens for new housing projects, with the costs then passed onto consumers.

Earlier this week housing spokesperson Michael Sukkar announced the Coalition would scrap Labor’s 1.2 million housing target if it was elected, accusing it of lying to Australians.

Speaking to ABC, Mr Sukkar said there was “no way” the government would meet their target, with Master Builders Australia estimating current rates for new home starts would result in a shortfall of 166,000 homes.