A Federal Independent MP has introduced a bill to establish a national definition of affordable housing.
Currently, the definition of affordable housing varies between states and territories.
Under a bill introduced by Nicolette Boele, the definition of affordable housing would be tied to how much a household earns and the market rate of rents.
Treasurer Jim Chalmers welcomed the MP's advocacy and agreed there is a need for a consistent definition of affordable housing.
Affordable housing
In the general sense, affordable housing is property available at a rate below the market rate.
It is developed with assistance from the government, through subsidies and planning incentives.
Lower income households and those going through financial troubles are eligible for affordable housing.
The threshold of what is considered affordable currently varies by state and territory, and among federal government policies.
The bill
On Monday, Independent MP Nicolette Boele introduced a private member's bill to establish a nationally consistent definition of affordable housing.
A private member's bill is one that is introduced by an MP who is not part of the Government.
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The bill suggests defining "affordable rent" as the lesser of: 75% of the weekly market rent for the property; and 30% of the household's weekly gross income.
Private member's bills rarely become law, as they need the government's support to be legislated.
Govt response
Treasurer Jim Chalmers welcomed Boele's advocacy and recognised her engagement with the Government.
The federal government's current affordable housing policy sets it at 25% below the market rate.
However, Chalmers acknowledged that this rate was "different across different states and different programs."
Chalmers added that Treasury, the federal housing minister, and the state housing ministers are working towards options for more consistency.
Opposition
Shadow Minister for Housing Andrew Bragg told TDA he does not believe the bill addresses core housing issues.
"Defining affordable housing, while fine on face value, distracts from the reality that Labor has created a housing nightmare, with fewer new homes, higher housing taxes and surging rents," Bragg said.
"Instead of splitting hairs on definitions, we need to support builders and developers to build more homes that Australians can afford to own," Bragg added.
