ACT Independent Senator David Pocock has introduced a private senator’s bill that would require affordable housing to be included in all residential developments on Commonwealth land sold or leased to private developers.
The proposed Commonwealth Land (Affordable Housing) Bill 2026 would apply to federal land assets earmarked for redevelopment, including a broader divestment program involving around 67 surplus Defence sites across Australia.
The program spans every state and territory and includes major holdings such as RAAF Base Williams at Point Cook and Laverton, Randwick Barracks, Victoria Barracks in Sydney and Brisbane, HMAS Cerberus, Lancer Barracks and St Kilda Training Depot.
At present, there is no legal requirement for affordable housing to be included in developments on Commonwealth land sold or leased to the private sector.
Under the bill, at least 30 per cent of homes built on Commonwealth land would be designated as affordable housing, with flexibility for regulations to adjust requirements based on site type and market conditions.
Certain sites could be exempt, including those affected by contamination, unsuitable land conditions or low housing demand.
Affordable dwellings would be required to meet rent caps set at the lower of 75 per cent of market rent or 30 per cent of household income, with eligibility restricted to households earning below median area income levels. The policy is designed to target key workers and middle-income renters priced out of the private market.
Penalties would apply for non-compliance and housing advocates estimate Australia faces a shortfall of around 640,000 social and affordable homes, underscoring the scale of unmet demand the bill is seeking to address.
The federal government is already investing in housing supply through initiatives such as the Housing Australia Future Fund, alongside broader housing and tax reform efforts.
However, critics argue current programs do not fully bridge the gap between supply and demand.
Senator Pocock said the government had taken positive steps but needed greater ambition.
“I commend the Albanese Government on its focus on increasing social and affordable housing supply but urge them in their second term to increase their ambition,” Senator Pocock said.
“The job has only started on addressing housing in Australia and there’s a lot of anxiety around what happens once HAFF round three concludes (the current tranche of Housing Australia Future Fund funding).”
“In the UK we see Andy Burnham promising the largest council house-building program in the post-war period. Canada’s National Housing Strategy (NHS) is investing upwards of $82 billion in housing. We need the Australian Government to also go big.”
The bill is expected to face further debate in the Senate and would require crossbench or government support to pass.