The Victorian Greens say Labor's own annual report has exposed a housing system that's costing Victorians more and delivering less - with cost blowouts, falling delivery, and billions in long-term payments locked into private developers under secretive contracts.
The Department of Families, Fairness and Housing 2024-25 Annual Report reveals that the cost of delivering housing has blown out by almost 25 per cent in a single year, driven by Labor's plan to demolish and privatise all 44 public housing towers through long-term deals with private consortiums.
Despite the huge spend, the number of new social homes delivered fell by almost 20 per cent in the last year, while people escaping family violence and others on the social housing waitlist are waiting an average of more than 17 months for housing - nearly seven months longer than Labor's own target.
The report also shows more than $10.8 million in payments to private consultants, with the tower-demolition and privatisation program alone accounting for nearly half of all consultancy spending - including multimillion-dollar contracts with Ontoit, KPMG, EY and Anne Dalton & Associates.
A letter within the report from the Victorian Auditor-General Office (VAGO) has flagged the controversial ground lease delivery model for the demolition and privatisation of the public housing towers as a key audit matter, citing the significant financial cost and a complex payment structure, which lacks transparency.
Financial statements show that Labor has already approved billions of dollars in the form of "service payments" and "grants of right to operate" which basically sees public money siphoned to these private companies who get to profit off the use of public land.
As stated by the Victorian Greens housing spokesperson, Gabrielle de Vietri:
"Labor is handing over billions in taxpayer money to deliver fewer homes for the people who need them."
"Even the Auditor-General has sounded the alarm - Labor's Ground Lease Model is dodgy, locking Victorians into decades of payments to private developers and paying obscene amounts to hand over public land for private housing, with zero transparency about the cost or the benefit."
"This is privatisation by stealth - a model that gifts public land and guaranteed income streams to private investors while the most vulnerable Victorians wait years for a roof over their heads. It's completely broken."
"Labor is throwing billions at private developers and consultants to demolish and privatise public housing. We're seeing no new public homes built, nearly 20 per cent fewer public and community homes delivered, and an overwhelmed waitlist. Victorians are paying more for less."
