Budget 2022: Super industry welcomes Housing Accord

Superannuation funds have welcomed the Government’s proposed Housing Accord, as announced in Treasurer Jim Chalmers’ budget.

This would bring together Government, investors and industry to boost supply and deliver up to 20,000 new affordable homes.

The Government would commit an initial $350 million in additional funding for another 10,000 new affordable homes, on top of its existing commitments.

Vicki Doyle, chief executive of Rest, said: “Rest has been an investor in institutional residential developments overseas since 2014. In our experience, these assets have been valuable in enhancing the financial interests of our members. 

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“We are interested in exploring how the development of domestic residential investment opportunities at scale can provide similar value to our 1.9 million members.”

Bernard Reilly, chief executive of Australian Retirement Trust, said: “We recognise that secure and affordable housing is one of the most significant contributors to the financial wellbeing of our members, and all Australians, throughout their working lives and in retirement. 

“Housing is a complex issue that requires a coordinated policy response from all levels of Government as well as the private and community sector, so we welcome this commitment to develop workable financing approaches that will best leverage institutional capital.

“We look forward to working with all parties involved in the accord to optimise policy settings that facilitate institutional investment in affordable housing.”

Chief executive of Cbus, Justin Arter, said: “The Accord has the potential to super charge this work, provide attractive returns for our members and address the affordable housing gap.
 
“The Accord will also mean more work and jobs for our members in the building and construction industry. Social housing construction creates jobs and keeps the economy moving.”

Martin Fahy, chief executive of the Association of Superannuation Funds Australia, said the organisation had campaigned for super fund assets to be spent on areas that would drive innovation through housing, energy transition and digital infrastructure.

“This announcement will give super trustees greater certainty with respect to the inclusion of these types of investments in their strategic asset allocation.

“Australian super fund trustees will continue to assess individual investment opportunities on their merits and in the best interest of their members’ long-term retirement outcomes.”