The government will meet with the Greens this week to discuss Labor's $10 billion Housing Australia Future Fund, signalling a potential shift in negotiations after a months-long stand-off.
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Housing Minister Julie Collins will reintroduce the bill in the lower house Wednesday, setting up a potential double dissolution election trigger.
The Greens and the Coalition voted to delay a vote on the bill in June. If the bill fails to pass the Senate again, the government appears able to dissolve both houses and call an early election.
Labor and the Greens have been at loggerheads for months over the Albanese government's housing policy, which is designed to invest $10 billion into a fund and use the returns to build 30,000 social and affordable homes over a five-year period.
Greens housing spokesperson Max Chandler-Mather wrote to federal and state governments last week, and called on Labor to deliver national rent caps, stronger renters rights, as well as more investment in public housing.
The Canberra Times understands the government has responded to the letter and has agreed to meet this week.
Both parties have made concessions in an effort to pass the legislation but rent controls have become a sticking point for the Greens. The party has also been calling for a $2.5 billion annual investment into housing.
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On Monday, Mr Chandler-Mather pointed to Labor Conference motion passed last month, calling on the federal government to spend annual $2.5 billion on public and affordable housing.
But the Greens have now said they are willing to negotiate, announcing they would move on their demand for $2.5 billion annual investment into housing in exchange for rental relief.
In a statement, Ms Collins said they could not "afford any delays to the Housing Australia Future Fund".
"This message has come from community housing providers, frontline homelessness services, state and territory housing ministers and tenants of social and affordable housing," she said.
"The Greens and the Liberals should get out of the way and back this secure, ongoing pipeline of funding for social and affordable housing.
"Every day of delay is $1.3 million less that can be spent on housing Australians in need. We cannot afford any further delays."