The Prime Minister has offered state and local councils $3.5 billion to fast-track the construction of 1.2 million homes.

During a national cabinet meeting held in Brisbane, Prime Minister Anthony Albanese proposed a $3 billion “performance bonus” incentive to inspire states and local councils to enhance land release, planning procedures, and approval processes, all directed at rapidly erecting “well-located” residences. 

The package also includes a $500 million housing support program, urging governments to speed up the provision of essential amenities and services to complement new developments.

This plan has received applause from the housing industry, which acknowledges the magnitude of the target, surpassing last year's agreement of 1 million homes. 

However, the Housing Industry Association's deputy managing director, Jocelyn Martin, emphasised the need for local councils to ensure cost-effective, ready-to-build land. 

“Local councils will need to be prepared to deliver shovel-ready land at an affordable price. This is not something that has been easy to achieve in the past,” Martin commented.

While the proposal has garnered praise from many quarters, there are detractors as well. 

The opposition has expressed scepticism, with housing spokesman Michael Sukkar criticising the government's ability to meet the target. 

“Last October, the Albanese government announced an ‘aspiration’ to build 1 million homes over five years, yet multiple housing industry groups have since confirmed that with building activity falling off a cliff, this target could not be met,” Sukkar noted.

The Greens have condemned the plan, saying it would not secure their support for the government's $10 billion Housing Australia Future Fund (HAFF). 

The HAFF remains in legislative deadlock since the Greens joined the Coalition to block its passage. 

The Greens demanded a national rent freeze or cap, instead of the package's approach, which focuses on incentivising construction.