An independent review of the National Housing Finance and Investment Corporation (NHFIC) Act has determined that the Morrison Government’s NHFIC is a “singularly significant and successful intervention by the Commonwealth”.
Led by eminent Australian Chris Leptos AM, the Review found that the advent of NHFIC provides an innovative mechanism whereby the Commonwealth can more directly influence the provision of housing to the benefit of Australians, noting that states and territories have primary policy responsibility.
In just three years, the Morrison Government’s NHFIC’s impact on housing outcomes across the housing continuum includes:
- Helping more than 56,000 Australians start their home ownership journey through the Home Guarantee Schemes;
- Supporting 13,000 homes through the provision of $2.5 billion in low cost loans to Community Housing Providers;
- Unlocking over 6,600 new social, affordable and market dwellings by financing enabling infrastructure; and
- Establishing one of the largest issuers of social bonds in the Australian domestic market, with each bond issuance up to 3 times oversubscribed.
This is in addition to the expected $9 billion to be provided in 2021/22 on housing and homelessness across the country, including around $1.6 billion provided to the states to meet their primary responsibility for housing and homelessness.
Despite its considerable early success, NHFIC is just one part of the overall solution. The comprehensive Review identified the scale of the affordable housing challenge will require active private sector participation.
The Morrison Government will now consider the Review’s recommendations and would like to thank Mr Leptos AM for his comprehensive and insightful report that will serve to further improve housing outcomes across Australia.