Dutton sets up housing showdown with big build pledge

The federal opposition has unveiled a plan for the construction of half a million new homes. (Bianca De Marchi/AAP PHOTOS)

A coalition government will make home ownership viable for more Australians, Opposition Leader Peter Dutton says, promising $5 billion to fast-track building projects.

Mr Dutton on Saturday unveiled the coalition’s Housing Infrastructure Program, designed to expedite construction of up to half a million homes through a mixture of grants and concessional loans.

If elected, the coalition would temporarily fund water, power and sewerage to move the projects along as part of the  commitment.

"This is a game-changer for young Australians who can't see the opportunity yet to own a home," Mr Dutton told reporters in Perth.

Peter Dutton
Peter Dutton has unveiled a $5 billion housing policy ahead of next year's federal election.

Noting it did not usually fall to the federal government to fund enabling infrastructure, he pledged to pay councils, utility companies or developers to fast-track development.

The bodies must use the money within a year.

"Under the Albanese government, Australia is facing a housing crisis. The great Australian dream of home ownership has never felt further out of reach," he said.

"We need to get our country back on track, and restore the Australian dream of home ownership."

But Housing Minister Clare O'Neil said the promise did not make up for the coalition's planned cuts to spending on social and affordable housing.

"Peter Dutton is taking with one hand and giving with the other. It's a card trick," she told reporters.

The opposition also announced a freeze and a review of the National Construction Code, claiming changes to energy efficiency standards had added up to $60,000 to the price of a new home.

Pressure had been mounting on the opposition to unveil more policies ahead of next year’s federal election, with housing affordability and cost-of-living front of mind for voters.

Master Builder Australia chief executive Denita Wawn backed the coalition's policy, saying red tape needed to be cut.

“A pause on unnecessary code changes that increase cost and complexity without meaningful improvements in standards is a positive step,” Ms Wawn said.

“Labour shortages, access to water, sewerage, power and roads, union disruption, and red tape all significantly impact the final project cost and build time."

The Business Council of Australia and the Urban Development Institute of Australia also backed the policy.

“This is smart policy that goes right to the heart of addressing the housing crisis and ensuring there are poles, pipes, wires and roads so houses can actually be built,” the institute's president Col Dutton said.

Labor has legislated a $10 billion fund for social and affordable housing but its plan to help lower-income Australians buy 40,000 homes is stalled in the Senate.

At the same time, Prime Minister Anthony Albanese has been forced to defend the purchase of a $4.3 million luxury home for himself and his future wife Jodie Haydon.

Speaking to reporters at a press conference on Wednesday, Mr Albanese was asked whether the purchase was a "good look" during a cost-of-living crisis.

"I understand that I've been fortunate, but I also know what it's like to struggle," he said.

"My mum lived in the one public housing flat that she was born in for all of her 65 years.

"I know what it's like, which is why I want to help all Australians into a home, whether it be public homes or private rentals or home ownership."

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