Audit finds Australia spent $770,000 per home on 40,000-unit target

An independent audit of the $10 billion Housing Australia Future Fund found a substantial risk the government will miss its target of 40,000 affordable and social homes by 2029. The report, compiled by the auditor-general, stated that 1,432 homes had been delivered as of April this year.

Of those, 762 were newly built by specific providers and 670 were new builds purchased from the private sector.

costs Treasury estimates show average government support of $770,387 per home over 25 years for the first two funding rounds. After inflation adjustment, the figure is $392,518 per home. Social homes cost an estimated $825,225 each and affordable homes $715,124 each.

The audit projects availability payments will total $12.2 billion from 2024-25 to 2039-40, with $8.9 billion covered by fund earnings and $3.2 billion from taxpayers.

The audit forecast that half the 40,000-home target would be met by mid-2028, with the remainder completed in the following 12 months. It noted considerable uncertainty around this schedule, especially for the third funding round still under review.

Of homes already approved, 2,590 are expected to finish this financial year, 7,238 in 2027-28, and 6,994 in 2028-29. The remaining 20,000 homes require funding that has not yet been approved. The audit found Treasury documented its risk-management approach more than a year after the program began and has not regularly updated risk assessments.

A funding boost in last year’s midyear budget update lowered the assessed risk of missing the target from high to medium. Housing Minister Clare O’Neil said the audit showed Treasury’s design of the fund was largely effective. Opposition housing spokesman Andrew Bragg said the report showed additional legislation was needed to increase transparency and that he would introduce a bill when parliament returns in August.