Housing Investment Probity Bill 2024

High-Level Summary
The Housing Investment Probity Bill 2024 proposes to amend the Housing Australia Future Fund Act 2023 to prevent the Housing Australia Future Fund (HAFF) from investing in housing-related assets or entities financed by Cbus Super, due to concerns about the union affiliations of Cbus.

Summary
The bill amends the Housing Australia Future Fund Act 2023 by adding subsections to section 39 that prohibit the HAFF from investing in any housing-related financial assets if Cbus Super, or any of its trustees or investment managers, has invested or plans to invest in those assets during a 'prohibited time'. A 'prohibited time' is defined as a period when the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU), which is affiliated with Cbus, is under administration. The bill aims to protect taxpayer funds by ensuring that investments are not made in projects influenced by a union facing serious allegations of misconduct. Existing investments made when the CFMEU was not under administration are not affected by this prohibition. From the explanatory memo:
This Bill takes action to protect taxpayers’ money from corrupt union influence by banning any Cbus involvement with the HAFF.

Argument For
Normative Bases
  1. Anti-Corruption
  2. Pro-Democracy

The bill should be supported because it aims to safeguard public funds from potential misuse due to the alleged misconduct and corruption linked to the CFMEU, which is affiliated with Cbus. By restricting investments in housing projects associated with Cbus, the bill promotes accountability and transparency in the use of taxpayer money, which is crucial for maintaining public trust in government financial management [Judgment].

Furthermore, ensuring that public funds are not invested in projects that could be influenced by entities under investigation for corruption aligns with democratic principles of fairness and probity in public spending.


Argument Against
Normative Bases
  1. Egalitarianism
  2. Pro-Democracy

The bill should be opposed because it could unfairly penalize Cbus, a legitimate financial entity, based on allegations against its affiliate, the CFMEU, rather than proven misconduct. This pre-emptive restriction might limit Cbus's ability to contribute to necessary housing developments, which could exacerbate the housing supply crisis [Judgment].

Moreover, the bill may set a concerning precedent where financial entities are punished based on associations, which could deter investment in other critical sectors. This could hinder democratic economic participation by reducing the diversity of players in the market, thereby impacting competition and innovation in the housing sector.


Date:

2024-08-21

Chamber:

Senate

Status:

Before Senate

Sponsor:

BRAGG, Sen Andrew

Portfolio:

Unspecified

Categories:

Anti-Corruption, Housing Policy, Democratic Institutions

Timeline:
21/08/2024
30/07/2025

Comments (0)