Housing, water and Country: what new federal investments mean for First Nations communities

While Invasion Day protests dominated headlines, a series of federal and state announcements have quietly committed hundreds of millions of dollars to First Nations housing, safe drinking water and land rehabilitation – with advocates watching closely to see whether money on paper translates into real change.

On 30 January, Minister for Indigenous Australians Malarndirri McCarthy announced a “historic” $600 million dedicated First Nations funding stream under Round 3 of the Housing Australia Future Fund. The package includes concessional loans for projects delivered by or in partnership with Aboriginal community‑controlled housing organisations, a 10 per cent First Nations tenancy target across all HAFF social housing, and a new concierge service within Housing Australia to support First Nations providers through the process.

Minister for Housing Clare O’Neil said the investment is aimed at both building more homes and strengthening the community‑controlled housing sector after decades of under‑resourcing. The government expects Round 3 of HAFF to deliver more than 21,000 social and affordable homes nationally by mid‑2029, with at least some of those homes specifically prioritised for Aboriginal and Torres Strait Islander families.

The same week, Queensland’s Woorabinda community finally saw its 11‑month boil‑water alert lifted after urgent repairs to the local water treatment plant. A $36 million First Nations water security project – jointly funded by the Albanese Government through the National Water Grid Fund and the Crisafulli Government’s Closing the Gap Priorities Fund – has restored the plant to working condition and supports further upgrades this year.

Federal Environment and Water Minister Murray Watt said “everyone deserves access to clean and reliable water, regardless of who they are or where they live”, describing the works as a critical investment in better health outcomes for rural and remote communities. Minister McCarthy said being able to “turn on the tap again and trust the water is safe” would make a real difference for families in Woorabinda, while Queensland ministers emphasised the importance of all three levels of government working with Woorabinda Aboriginal Shire Council.

Also on 30 January, the federal government issued a new rehabilitation authority for Energy Resources Australia to continue cleaning up Ranger Uranium Mine in the Northern Territory so the land can ultimately be returned to the Mirarr Traditional Owners. Resources Minister Madeleine King said the goal is to restore the former mine site to a condition similar to surrounding Kakadu National Park, with the Mirarr working alongside the Northern Land Council, the Gundjeihmi Aboriginal Corporation and the company.

These announcements come as data shows housing and basic infrastructure remain key pressure points. The Australian Institute of Health and Welfare reports that about 19 per cent of First Nations people lived in overcrowded housing in 2021 – down from 31 per cent in 2001 but still far higher than for non‑Indigenous Australians. AIHW research also shows overcrowding is worst in social and community housing, where up to 43 per cent of First Nations tenants live in crowded conditions and that poor housing quality contributes directly to poorer health.

A recent ABS briefing notes that around 983,700 Aboriginal and Torres Strait Islander people lived in Australia as at 30 June 2021, with roughly 81.4 per cent in appropriately sized housing – progress… but still short of the Closing the Gap target of 88 per cent by 2031.

Federal programs are increasingly steered by Closing the Gap data that can be broken down to local government and Indigenous region level, meaning towns where overcrowding, homelessness or poor water quality are entrenched have a clearer case for investment. Local Aboriginal housing and health organisations will be watching whether the new funding streams make it any easier to replace ageing stock, fix critical infrastructure and design solutions that reflect what mob say they actually need.