New housing goals are set by the national cabinet, which also promotes "better deals for renters".

After meeting with state and territory leaders in Brisbane, the prime minister praised a "better deal for renters" and a plan to increase housing supply.

The new goal, which will begin in July of next year, is to construct 1.2 million new dwellings over a five-year period. The new goal surpasses the National Housing Accord objective set by states and territories last year by an additional 200,000 dwellings.

In a news conference, Prime Minister Anthony Albanese stated that increasing housing supply is the best way to guarantee that more Australians have a safe and affordable place to live.

Considering rising rents and a housing shortage amidst a cost-of-living crisis, housing was the prime minister and the premiers' top priority.

According to Mr. Albanese, the jurisdictions would gradually implement minimal rental rules while restricting rent hikes to once a year and providing sufficient grounds for removal.

Those measures are already in place across much of the country. Rent increases are not limited to once a year in the Northern Territory or Western Australia, where the rents can be hiked every six months, but the WA government flagged a switch to 12-month increases earlier this year.

"We're not in a position to flick the switch and just change eight pieces of legislation across states and territories immediately," Mr Albanese said.

For the nearly one-third of Australians who rent, Mr. Albanese predicted that the rental restrictions would have a "tangible impact." However, they let down the Greens, who have been pressuring the administration to do more.

In addition to their part of the 1 million well-located dwellings, the federal government has offered $15,000 for each new home the states and territories construct, for a total of $3 billion in "incentive payments".

It is acknowledged that the $15,000 might then be used however states see fit.

According to Mr. Albanese, the goal is to persuade governments to implement changes that will enhance housing availability and affordability.

A $500 million competitive funding programme for local and state governments will help "kick-start" the supply of dwellings to support the housing target.

A National Planning Reform Blueprint was also approved by the national cabinet. It included updating local governments' strategic plans to match housing policy objectives and promoting medium and high-density building in regions that were conveniently located near existing public transportation.

The leading organisation for the building and construction sector, Master Builders Australia, praised the housing initiatives and asked all levels of government to put them into effect "immediately."

The national cabinet declaration was hailed as a "step in the right direction" by top housing advocacy groups Community Housing Industry Association (CHIA) and National Shelter.

The Housing Australia Future Fund (HAFF), the government's flagship housing policy, has not received the Greens' backing in the Senate because they demand a two-year rent freeze and rent ceilings.

Up to 30,000 new social and inexpensive homes might be purchased with the $10 billion HAFF, but the legislation has stuck in the Senate.

Rent ceilings run the potential of "doing more harm than good," according to Brendan Coates, director of the Grattan Institute Economic Policy Programme.

"We'd have less of it, and it would be of lesser quality... According to him, rent regulations lessen the incentives for investors and developers to create new homes and preserve the current housing stock.”