Bill to establish $10 billion Housing Australia Future Fund

Housing Minister Julie Collins has flagged that a bill to establish the Housing Australia Future Fund will be presented to Parliament later this week as the government ramps up action to tackle the nation's acute affordable housing problem.

Ms Collins said the legislation would be "a big step forward" in tackling the issue.

"We know too many Australians are facing high rents and wondering how they will make ends meet," the minister said. "The introduction of this legislation is a big step forward to start addressing these issues over the long term."

Under the government's plan, in its first five years the fund will use returns on investment to purchase 30,000 new homes, including 4000 for women and children escaping family violence and older women facing homelessness.

Housing costs helped fuel a record surge in living costs last year.

According to the Australian Bureau of Statistics, a surge in mortgage repayments from higher interest rates and spiraling rents helped push expenses for working families up 9.3 per cent in the 12 months to the December quarter.

Opposition housing spokesman Michael Sukkar said there were "significant issues" with the government's housing plan, which would do little to address the shortage of affordable housing.

"The government's scheme is at best a niche program that very few Australians would even qualify for, let alone participate in," Mr Sukkar said.

He highlighted concerns about taxpayer liability and "huge risks to participants" under its design.

But Ms Collins said the Housing Australia Future Fund would "create stream of funding to ensure there is a pipeline of new social and affordable housing".

In his recent essay published in the Monthly, Treasurer Jim Chalmers identified co-investment by government and the private sector in initiatives like the fund as a "powerful tool" in using capital to address pressing social needs.

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Industry Super Australia chief executive Bernie Dean said a number of superannuation funds and banks were interested in participating.

"We are working very closely with the Treasurer on the design of the scheme," Mr Dean said.

He added that, "we have made it clear that the investment opportunity needs to stack up for members."

The government will also introduce legislation to establish the National Housing Supply and Affordability Council to provide research and recommendations on boosting affordable housing and create Housing Australia, which will coordinate national housing programs.

The move comes amid evidence the national supply of housing is slowing, with building approvals down almost 4 per cent in the 12 months to December.