Tenants and first home buyers would be better represented through a new housing body, under legislation that aims for a "human rights-based approach to housing".
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The bill, to be introduced to both houses of parliament on Monday, would also firm up work already under way by the Labor government by legislating the requirement for a 10-year National Housing and Homelessness Plan.
The proposed legislation draws inspiration from Canada, where a similar housing plan and advocacy group was established in recent years.
Independent senator David Pocock and independent MP Kylea Tink will introduce the National Housing and Homelessness Plan Bill on Monday into the upper and lower houses of parliament, respectively.
Long-term strategy that endures beyond short-term political cycles was necessary to address the housing crisis, Mr Pocock said.
"Having a transparent framework, with agreed national objectives embedded in legislation and greater accountability can help transform how we treat housing from being a vehicle of wealth creation to a fundamental human right," he said.
The Albanese government is developing a 10-year National Housing and Homelessness Plan, which is expected to be released this year. The strategy will replace the existing National Housing and Homelessness Agreement.
The bill would "future-proof" this work and legislate a requirement for current and future governments to develop and maintain a plan every decade.
It would also mean legislated objectives for the plan, including improving housing supply and affordability and ending homelessness.
The bill proposes to establish a National Housing Consumer Council that would represent tenants and home buyers, in particular first home buyers, social housing tenants and people who have experience with homelessness.
A National Housing and Homelessness Advocate is also proposed. They would monitor the progress of the 10-year plan, provide advice to the housing minister and review systematic housing issues.
The bill was informed by a research report published by the Australian Housing and Urban Research Institute in 2023.
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The report recommended Australia follow Canada's lead in legislating a 10-year housing plan and establishing both the consumer council and housing advocate.
Ms Tink, the member for North Sydney, said for too long Australia's approach to housing policy had been short-term or "simply put in the 'too hard basket'".
"Amid a new wave of homelessness, worsening rental affordability and intergenerational inequity, and housing affordability surging to 'impossible' levels, we urgently need to come together to deliver a meaningful, legislated, national approach to ensure all Australians have adequate housing," she said.
The parliamentarians have garnered industry backing for the bill, with 117 signatories including housing advocates and academics supporting the proposal to legislate a National Housing and Homelessness Plan.