The Future Fund established in 2006 was established to meet the cost of public sector superannuation liabilities, however, it could also be used to help those battling rent stress.

The Fund could be used to create an institutional market for residential investment that would provide assistance to the more than 600,000 households in rent stress and bolster the stock of affordable rental accommodation in Australia. 

The National Rental Affordability Scheme (NRAS) announced by federal government is a measure appropriately targeted at boosting the supply of affordable rental properties.  However, the challenge for the scheme will be securing investors and credit, particularly given pressures on capital markets and the rather low yields from residential investments.   

As at April 2008, the Future Fund had $61.48 billion to invest.  Using this sum the fund is required to deliver a return of at least 5 percent above CPI over a rolling 10 year period.  Against this requirement it would seem that the Future Fund represents a viable source of capital for NRAS.  An investment from the Future Fund of less than 1 percent would realise as much as 20 percent of the number of dwellings proposed for the establishment phase.

The Future Fund has the financial capacity to invest in NRAS there seems little doubt about that.  Arguably the Fund also has a social responsibility to invest in the area of affordable housing. 

Clearly, if the Future Fund's Board of Guardians deem an investment in a scheme like NRAS as offering an insufficient return on investment, than similar concerns are likely to be raised by other would be institutional investors. 

While key worker groups are paying for the superannuation benefits of previous public servants and politicians, surely it is not without merit to direct investment in such a way that provides some domestic benefit.  In this way the Future Fund like current taxpayers would be doing some heavy lifting to support Australians in need. 

Chris Lamont is the Chief Executive - Policy for the Housing Industry Association [1].  He is an economist with previous experience in both the public and private sector.  Prior to joining HIA he was a Chief of Staff to a former Federal Minister.  In 2008 he was appointed by the Prime Minister of Australia the Hon. Kevin Rudd to the National Housing Supply Council.