What’s in the 2022 Budget for housing and homelessness?

Although the 2022 Budget hasn’t focused significantly on housing and homelessness, the Australian Government is funding a number of ongoing housing and homelessness commitments.

The Government will continue the $1.6 billion funding for the National Housing and Homelessness Agreement (NHHA). Through the National Partnership payments ($313.7 million), funding is allocated to HomeBuilder ($85.1 million), Northern Territory Remote Aboriginal housing ($3.8 million); Remote housing ($223.8 million) and Social Impact investments ($1 million).

While not a direct out-going cost, the National Housing Finance and Investment Corporation (NHFIC) has had its liability cap raised by $2.0 billion to $5.5 billion. This will enable the NHFIC to provide extra low-cost loans to community housing providers to support the acquisition of around 10,000 more affordable dwellings.

The Commonwealth Government’s Home Guarantee Scheme, which supports eligible homebuyers to purchase a home with a low 5 per cent deposit, will expand the number of guarantees available to 50,000 per year for 3 years from 2022–23. The Scheme will then drop down to 35,000 guarantees a year ongoing.

The allocation will be: 

• 35,000 guarantees per year ongoing for the First Home Guarantee (formerly the First Home Loan Deposit Scheme)
• 5,000 places per year to 30 June 2025 for the Family Home Guarantee (for eligible single parents with at least one dependent child in purchasing a family home)
• 10,000 places per year to 30 June 2025 for a new Regional Home Guarantee that supports eligible people to purchase a new home in a regional location.

In the light of severe flood and storm damage experienced in some parts of Australia the Government is implementing a cyclone and related flood damage reinsurance pool from 1 July 2022, backed by a $10 billion Government guarantee. The pool will offer discounts for properties that have undertaken cyclone mitigation.
In addition, the Government will re-profile existing funding provided to Indigenous Business Australia for regional housing construction loans as part of the Indigenous Home Ownership Program, at a cost of $7.7 million over 5 years from 2021-22.

You can find out more about the 2022-23 Budget here.