Australia's ambitious social housing program faces mounting criticism after revealing disappointing completion numbers, with the opposition declaring the scheme a comprehensive failure.
HAFF falls dramatically short of targets
Opposition housing minister Andrew Bragg has described Labor's Housing Australia Future Fund as a "disaster" that has delivered only 889 completed homes during its first two years of operation. This represents a tiny fraction of the government's stated goal of 40,000 properties over five years.
The Liberal senator revealed he is developing an alternative policy that would take a harder line with state governments, potentially withholding federal infrastructure funding from states that fail to meet their social and affordable housing targets.
"We would look at potentially coercive measures against the states which fail to meet their targets," Bragg told 7NEWS. "Right now we give the states a lot of blank cheques. We say 'here is some money for infrastructure' and we don't tie it to any housing outcomes."
Government defends program amid criticism
The Albanese Government launched the third round of HAFF funding over the weekend, promising 21,350 new social and affordable homes. This follows rounds one and two, which are supporting 18,650 homes in total.
Despite the low completion numbers, Housing Australia chief executive Scott Langford pointed to progress, with 9,501 homes currently under construction across the country.
"We've seen momentum building in the first two rounds, and now we're calling on partners to work together to provide all 40,000 homes by 2029," Langford said. "The next round is about accelerating delivery and deepening partnerships."
Housing Minister Clare O'Neil defended the government's approach, stating that Australia's housing crisis stems from a fundamental housing shortage that requires construction at scale.
"That's exactly what the Albanese Labor Government is doing by supporting thousands of social and affordable homes in every corner of our country," O'Neil said. "After a decade of dithering under the Coalition and relentless opposition in the Parliament, the HAFF is building. More homes, more speed, more scale."
Coalition proposes tougher approach
Bragg and the Opposition remain scathing of HAFF's performance, with the senator describing it as "one of the greatest disasters in my lifetime in terms of public administration."
"It has $10 billion and has built a handful of houses, many of which have been purchased," Bragg said, contrasting the Coalition's proposed approach. "We wouldn't have that bureaucratic approach. We would work with the states to get public and social housing numbers up."
The opposition housing minister is preparing a speech that will reveal further details about his alternative policy in coming weeks, potentially setting the stage for a major political battle over Australia's approach to solving the housing crisis.
Historical data shows dwelling approvals peaked at 23,123 per month under the Morrison government in March 2021, while approvals stood at 17,019 for September 2025, though officials note these numbers fluctuate monthly due to seasonal factors.
