Victoria has become the first Australian state to sign up to the Federal Government’s New Homes Bonus, with Prime Minister Anthony Albanese announcing the state is on track to receive an additional $350 million for infrastructure supporting growing suburbs and regional communities.
Albanese made the announcement at The Age’s inaugural Melbourne Assembly at Federation Square on Tuesday, 20 October, as he outlined the government’s housing supply agenda and its partnership with the Victorian Government.
The funding is intended to help deliver local infrastructure needed to support new housing, including services that unlock land for residential development.
“Already, Victoria is on track to receive an additional $350 million under the New Homes Bonus.”
He said the funding could be reinvested into local infrastructure supporting the state’s growing suburbs and regions.
Under the National Housing Accord, the Federal Government has set a target of building 1.2 million homes nationally.
The New Homes Bonus is designed to encourage states and territories to increase housing construction, with payments linked to additional eligible homes built.
Albanese encouraged other states and territories to follow Victoria’s lead, describing the scheme as an important part of the national effort to accelerate housing construction and improve affordability.
He said more than 90,000 Victorians had entered the housing market using a five per cent deposit since Labor came to government.
The Prime Minister argued that increasing housing supply was central to improving affordability and said Victoria was building more homes, helping more people purchase their first property.
The Commonwealth and Victorian governments are also investing in infrastructure needed to unlock housing developments.
Albanese highlighted the Federal Government’s $2 billion Local Infrastructure Fund, announced in the Budget, which provides support to local governments and state utilities to unlock land for housing.
The fund includes $500 million earmarked for new development in regional Australia.
He said infrastructure such as water, sewage and electricity connections was essential to getting new homes built, alongside access to public transport, schools and green spaces.
The Prime Minister also indicated that the two governments would announce further measures later in the week aimed at bringing more homes to market, particularly for first-home buyers.
Albanese concluded his speech by highlighting Melbourne’s multicultural communities, infrastructure and economic potential, saying the city’s people and their aspirations were central to its future.
“Australians of every faith, culture and background living in unity and guided by aspiration.”
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