The Auditor-General has warned there is now “considerable uncertainty” surrounding the delivery of the government’s signature housing programs.
Two of the federal government’s flagship housing programs risk falling short of their targets, according to a new Auditor-General report that has examined the design and delivery of the Housing Australia Future Fund (HAFF) and the National Housing Accord Facility (NHAF).
Released on Tuesday (21 July 2026), the Australian National Audit Office (ANAO) report found the design of both schemes to be largely effective but highlighted shortcomings in their delivery of the programs that have placed their housing targets at risk.
First announced in 2023, the HAFF was established with an initial $10 billion investment, with returns from the fund used to support social and affordable housing delivery, while the NHAF provides additional funding through agreements with states and territories.
Responsibility for both schemes sits with the Department of Treasury.
The schemes have a combined target of delivering 40,000 social and affordable homes by 30 June 2029, with 30,000 through the HAFF and 10,000 through the NHAF.
However, the Auditor-General’s report found that as of May 2026 only 1,432 homes had been completed.
It also noted that, based on April 2026 forecasts, just 20,000 homes – half of the combined target – are expected to be completed by 30 June 2028.
This means a further 20,000 homes would need to be delivered in the final year of the programs to meet the 40,000-home target by June 2029.
“Given that round three is underway, there is considerable uncertainty about this forecast as of June 2026,” the Auditor-General said.
Delivery arrangements only ‘partly effective’
The review raised several issues regarding delivery arrangements, suggesting there has been insufficient transparency on program delivery, costs, and impact.
Key issues identified by the Auditor-General included program management, suggesting governance and oversight arrangements were established late and not consistently maintained.
The report also noted Treasury took more than a year to formalise its risk management framework and did not regularly review program risks or assess the effectiveness of its controls.
“Partly effective delivery arrangements, including program management, risk management and performance management, increase the risk that the program is not governed and managed to a standard sufficient to deliver the desired policy outcomes,” the Auditor-General said.
“There has been insufficient transparency on program delivery, costs and impact.”
Calls for stronger oversight
As part of its review, the Auditor-General made five recommendations to strengthen the management of the schemes, all of which were accepted by Treasury.
Recommendations include improving governance and information management arrangements, regularly assessing program risks and the effectiveness of controls, and strengthening risk oversight by clarifying responsibilities and ensuring risks are regularly reviewed.
In its report, the Auditor-General also called on Treasury to establish clearer measures of delivery efficiency and improve public reporting on program performance, including progress against targets and broader outcomes.
“There is a risk that the programs may not achieve their intended outcomes unless Treasury strengthens its management of governance, risk and performance arrangements,” it said.
Government responds
The federal government responded to the Auditor-General’s findings in a statement from Housing Minister Clare O’Neil, issued by Treasury.
The Housing Minister acknowledged the Auditor-General’s assessment that Treasury’s design of the HAFF was largely effective and supported by sound policy advice.
She also noted that the report recognised Treasury had continued to improve the program over time by incorporating lessons from earlier funding rounds and stakeholder feedback.
“This program is being delivered in one of the toughest construction markets in decades. As building and financing costs increased, Treasury identified those pressures early and the government acted to protect our commitment to deliver more social and affordable homes,” she said.
“The Auditor‑General has identified practical opportunities to strengthen governance, risk management and public reporting as the program continues to mature. We welcome those recommendations and will continue improving the way the program is delivered.”
The 40,000-home HAFF and NHAF target forms part of the government’s broader commitment to deliver 55,000 social and affordable homes by 2029 when combined with other initiatives, and O’Neil reaffirmed the government’s commitment to the broader target in her statement.
“The Albanese Government stands behind the ambitious target of building 55,000 new social and affordable homes by the end of the decade, because ambition is exactly what we need to turn the tide on a housing crisis a generation in the making,” O’Neil said.
“Our focus squarely remains on the gritty, complex and sizeable task of delivering 55,000 new homes for Australians, working alongside Housing Australia, the states and territories, community housing providers and industry.”
[Related: Senate probe reveals structural drivers of housing crisis]
Want to see more stories from trusted news sources?
Make The Adviser a preferred news source on Google.
Click here to add The Adviser as a preferred news source.
