The federal government has opened the third funding round of the Housing Australia Future Fund (HAFF), committing $600 million to projects aimed at improving housing outcomes for Aboriginal and Torres Strait Islander communities.
The government's plan aims to deliver more than 21,000 new social and affordable homes nationwide, as part of a bigger commitment of 55,000 homes through the HAFF — which provides loans and grants to increase the supply of social and affordable housing — by mid 2029.
As part of Round 3, a 10 per cent First Nations tenancy target has been set to ensure Aboriginal and Torres Strait Islander people benefit from the full scale of the investment.
Describing the announcement as "historic", Labor says the funding has been designed in partnership with Indigenous communities and argues it "strengthens the community-controlled housing sector and embeds Closing the Gap priorities at the heart of the Government's housing agenda".
In addition to the $600 million in dedicated funding, the round includes access to concessional loans, the establishment of a new First Nations concierge within Housing Australia, and updates to the agency's Investment Mandate to embed Closing the Gap priorities.
The announcement comes as Productivity Commission data released on Thursday evening shows the proportion of homes allocated to social housing has fallen to a record low of 3.6 per cent, down from 5.7 per cent in the 1990s.
Minister for Indigenous Australians Malarndirri McCarthy said housing is central to closing the gap, with access to a safe home leading to improved wellbeing. Target 9 of the Closing the Gap agreement aims to lift to 88 per cent the proportion of Aboriginal and Torres Strait Islander people living in appropriately sized, non-overcrowded housing.
"That's why Closing the Gap priorities are embedded in our government's housing agenda," Senator McCarthy said.
"This $600 million HAFF investment is another way the Albanese Government is delivering for First Nations families and communities."
Housing Minister Clare O'Neil said that for too long, "First Nations Australians have faced some of the worst housing outcomes in the country".
"That's not good enough, and this Labor Government is acting," she said.
"This $600 million investment is about more than just building homes — it's about building capacity, respecting self-determination, and putting First Nations communities in control of their own housing futures."
In 2024, former Yoorrook Justice Commissioner Kevin Bell warned Australia is facing a housing crisis so severe it risks becoming a national catastrophe without urgent, coordinated action.
In his book Housing: the Great Australian Right, he wrote that "Australian housing, one way or the other, is located on land taken from First People at colonisation, in what was a massive and system breach of their human rights".
When Round 3 was first confirmed in November, Victoria's Aboriginal Housing and Homelessness Forum (AHHF) said it aligns with Priority Reform 2 of the Closing the Gap Agreement — building the community-controlled sector — and reinforces the need for Aboriginal Community-Controlled Organisations to lead housing solutions.
At the time, AHHF Chair and Aboriginal Housing Victoria CEO Darren Smith said the announcement demonstrated a genuine commitment from the Commonwealth to improving Aboriginal housing outcomes. However, he noted that while the funding is an important step, the "need is far greater — both in Victoria and across the country".
"To truly close the gap, the First Nations stream must grow in future rounds, and the 10 per cent target must be expanded as part of a long-term national strategy," he said.
