Tasmanians could soon have access to 1200 additional homes over the next five years after major movements on the federal government's $10 billion Housing Australia Future Fund.
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Jacqui Lambie Network Tasmanian Senator Tammy Tyrrell and Senator Lambie lent their support to the bill on Thursday, with the federal government in return lifting the minimum number of houses each state territory will receive.
It means Tasmania would now get at least 1200 homes instead of 600, with the federal government committing to building 30,000 houses nationwide in the first five years of the fund.
Tasmanian Senator Helen Polley hailed the news as a major boost for Tasmanians in need of housing.
"This important investment is a long time coming after 10 years of discussion and delay by the former Coalition government on social and affordable housing," she said on Friday.
"It is no time to complain about this historic reform. The Albanese government is getting on with the job of building social and affordable housing because we know too many Tasmanians are sleeping rough."
The bill has already passed through the House of Representatives, but has not received sufficient support in the Senate.
Even though it now has the backing of the JLN, it would still need the support of the 11 Green senators to pass.
Pressure is continuing to build on the party to support the fund with all eight state and territory housing ministers writing to senators on Wednesday imploring them to pass it.
But Tasmanian Greens senators Nick McKim and Peter Whish-Wilson hit back, arguing the fund would "barely scratch the surface of what is needed".
"Tasmania is the least affordable place in the country to rent, and this deal offers absolutely nothing for renters," they said in a statement on Thursday.
"This is not the best deal for Tasmanians and the Greens will continue to work with all sides of politics to improve what is still clearly a completely inadequate housing plan.
"The Albanese government can afford to build more homes in Tasmania than it has currently committed to."
Senator Polley called the Green's stance "destructive" and "politically self-interested", saying the fund would help fix the state's housing crisis.
"The fact the Greens are willing to see people go without a home to try and win a political argument is destructive and politically self-interested," she said.
"I am deeply disappointed with the Greens' view of opposing the fund. They are a party that simply opposes for the sake of opposing. The Albanese government is solution and outcome driven which is why I urge all Senators to support this meaningful and practical reform to put more rooves over more Tasmanian heads."
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