Peak Union Body Calls for Two-Year Tenancy Rights and Modular Housing Expansion

Australia's peak union body is advocating for a

Australia's peak union body is advocating for a nationwide guarantee that all renters can secure leases lasting at least two years, a move aimed at providing greater stability for the millions of Australians in the private rental market. The Australian Council of Trade Unions (ACTU) is also urging the federal government to consider a major shift towards modular construction as a swift and scalable solution to the nation's chronic shortage of public housing.

In a new policy document, the ACTU argues that the current rental system, which often leaves tenants vulnerable to short-term leases and frequent rent increases, is failing to provide the security that families and individuals need to plan their lives. A two-year lease default, they contend, would offer renters a stronger foundation, reducing the stress of constant moving and the associated costs that come with it.

Beyond tenancy terms, the union body is pushing for a dramatic increase in the supply of social housing, proposing that modular buildings—prefabricated structures assembled on-site—could be the key to delivering thousands of new homes quickly and cost-effectively. The ACTU points to the success of such methods in other countries, where government-backed programs have used modular technology to fast-track housing projects in the face of urgent demand.

This call comes as housing affordability and availabilit…

This call comes as housing affordability and availability dominate political debate, with many experts warning that the current pace of construction is nowhere near enough to meet demand. The union's proposal also includes a broader vision for housing as a public good, urging the government to adopt a more interventionist role in the housing market, rather than relying solely on private developers.

While the government has already pledged funds for social housing in recent budgets, the ACTU argues that more ambitious action is needed. By combining lease security with a modular building program, the union says Australia could make significant inroads into its housing crisis within a few years, not decades. The proposal is likely to spark discussions among policymakers, though critics may question the feasibility of large-scale modular housing and the economic impact of mandating longer leases.

For renters, however, the message is clear: the peak body is committed to fighting for a system that prioritizes people over profit. As the housing debate heats up ahead of the next election, the ACTU's plan could become a key battleground, forcing parties to outline how they intend to address the growing insecurity faced by millions of Australians.