The federal government’s Housing Australia Future Fund has been called out after it was revealed $30 million had been spent without the construction of a single home.
More than $24 million was paid to external consultants while $6 million went to annual executive salaries last year, The Australian reported.
Documents obtained by The Australian also revealed Housing Australia paid out more than $16 million for legal, IT and “advisory” contracts in 2023.
Contractors attached to Housing Australia within the documents included 19 staff from advisory firm PwC – employed by the housing agency on salaries of more than $300,000 a year and five on more than $400,000 a year.
The spending revelations came a month after Treasurer Jim Chalmers handed down the 2024-25 Budget, which outlined Labor’s plan to achieve an additional $1 billion in savings on consultants.
The highest paid executive with the agency is CEO Nathan Da Bon who is sitting on a total package of $557,000 – about $30,000 less than Prime Minister Anthony Albanese.
Executive Director of poverty charity Vinnies, Sam Crosby, said it was difficult to defend Labor’s big spending on external consultants and slow action in getting the ball rolling on the construction of new homes.
“It’s hard to defend, Sharri. It’s hard to defend,” Crosby told Sky News host Sharri Markson on Tuesday night.
Crosby laughed at the irony of being the husband of NSW Housing Minister Rose Jackson as he admitted he was conflicted by the scenario, however he maintained he couldn’t hold back criticism against the federal government.
“Obviously I work at the Vinnies and obviously I’m the husband of the New South Wales housing minister, so I’m a little bit conflicted here, but I think it’s hard for any federal government to defend setting up a $30 million bureaucracy, the vast majority of which is spent with external consultants,” he said.
“Each of the states have their own housing bodies already set up, already ready to go, already delivering thousands of units and dwellings, homes each year.
“So I just don’t know why you wouldn’t have a very small team of economists dividing up the money according to whatever the formula is and getting the money out the door, into the community.”
The $10 billion Future Fund was established on November 1 2023 as part of an election promise from the Albanese government to provide affordable housing in the country.
Housing Australia is currently assessing applications it received in round one of funding, with decisions set to be made in the third quarter of 2024.