Sarah Petty

Updated 27 Feb 2024, 6:48pm

First published 27 Feb 2024, 5:39pm

News Corp Australia Network

Former federal treasurer Wayne Swan says Aussie super funds have a “substantial role” in building 40,000 homes to help fix the nation’s housing crisis

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Former federal treasurer Wayne Swan says Aussie super funds have a “substantial role” in building 40,000 homes to help fix the nation’s housing crisis.

At the Community Housing Industry Association (CHIA) Affordable Housing Development and Investment Summit on Tuesday, the ex-politician turned Cbus chair said social and affordable housing could be part of the “investment mix” for super fund members.

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“It’s absolutely critical for enabling greater social and economic participation and to drive increased productivity, but also a fairer society,” Mr Swan said.

“It’s about fulfilling the full economic, social and moral potential of our superannuation system and our economy more broadly.

“Also, at its base, (it) will still return to super fund members. It’s a win-win.”

He added that super funds wouldn’t invest in social and affordable housing unless it had a commercial return.

Mr Swan said that without the right mix of housing stock, Australia couldn’t continue to be a productive and cohesive economy or society.

“We’ve got to do better on housing policy; we’ve got to reassess our priorities,” he said.

“There is the potential for a broad coalition active, loud and proud in this area.

This comes as four major industry super funds and IFM investors have decided to invest in community housing.

Mr Swan (left) said super fund investment in social and affordable housing was critical for enabling greater social and economic participation and to drive increased productivity.

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Cbus Super, CareSuper, Hostplus, Rest and IFM investors collectively manage more than $505 billion in funds and are planning to work together to generate long term risk adjusted returns to their members and increase housing supply.

They intend to do this by injecting significant capital into the housing sector by partnering with community housing providers to initiate investments through the Commonwealth Government’s Housing Affordability Future Fund (HAFF).

The Association of Superannuation Funds of Australia (ASFA) chief executive Mary Delahunty said Australian superannuation fund trustees assessed investment opportunities on their merits and in the best interests of their members’ long-term retirement outcomes.

“Super funds seek to optimise the best risk-adjusted long-term returns for members at the portfolio level and property is typically part of a diversified portfolio of assets,” Ms Delahunty said.

“On average, domestic and offshore property, largely non-residential, accounts for around 7 per cent of superannuation investments.

“Patient, long-term superannuation capital has the capacity to generate increases in housing supply and improve tenure and affordability in the Australian rental market.”

She added that super funds continued to invest in affordable and essential worker housing and community-based impact investment opportunities in social housing.

The federal government’s HAFF and the National Housing Accord initiatives intend to deliver 20,000 new social and 20,000 new affordable homes across the nation in the next five years, with the programs administered by Housing Australia.

Mr Dal Bon said social and affordable housing could become a viable asset class in Australia.

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Community housing providers and other eligible applicants can apply to the independent national housing authority’s first funding round by March 22 for support.

At the Summit, Housing Australia chief executive Nathan Dal Bon said more than 300 organisations had registered in their portal since the funding round opened on 15 January.

“The substantial nature of these programs, in terms of financing options and the 40,000-dwelling target over five years, will act as a catalyst for private sector investment in the community housing sector,” Mr Dal Bon said.

“(This) can help fast-track the establishment of social and affordable housing as a viable asset class in Australia.”

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sarah.petty@news.com.au