Cbus made $500m HAFF investment despite major concerns

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The industry super fund warned Treasury that “no investor would provide capital upfront” under its current proposal despite pledging funds itself.

in the government’s controversial affordable housing plan came despite its own concerns that the scheme’s design meant “no investor would provide capital up front”.

But emails between the fund and Treasury reveal Cbus believed that the HAFF’s original repayment policies, which required annual sign-off in the federal budget, would turn off any institutional investors despite its own pledge.

Cbus also noted its legal duty to act in members’ best financial interests, which other superannuation funds and expertsas subsidised rent on affordable housing may not maximise returns. “The government has listened to feedback from stakeholders and worked constructively across the parliament to make important changes to the Housing Australia Future Fund legislation,” she said.

He also said that all the fund’s investments were “assessed rigorously to ensure [they’re] in members’ best financial interests”.understands that Mr Swan was not involved in Cbus’ decision to invest in the HAFF and that the decision was partly based on earlier discussions with the National Housing Finance and Investment Corporation about potential mechanisms for the fund.

 

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