National cabinet agreed on new target of 1.2 million homes, rental reforms

A plan to develop nationally consistent renting policies and a target to build 1.2 million new "well-located" homes over five years were among a suite of measures announced by federal, state and territory leaders on Wednesday in Brisbane.

The national cabinet agreement adds an extra 200,000 new homes to the National Housing Accord target set by states and territories last year, with the commonwealth adding a $3 billion sweetener to push governments to deliver on the new 1.2 million target.

Prime Minister Anthony Albanese said supply was the answer to the housing crisis and the key to assisting tenants along with "sensible renters rights".

Housing has dominated the national cabinet agenda amid pressure on the federal government to address renters rights.

The issue has been at the centre of a standoff between the federal government and the Greens on Labor's $10 billion fund for social and affordable homes, with the minor party pushing for a national rent freeze followed by a cap on rent increases.

Mr Albanese said a rent freeze will make the situation worse, instead announcing plans to move towards national standards on measures including limiting rent increases to once a year and requiring reasonable grounds for evictions.

The cabinet's "better deal for renters" also includes plans to ban soliciting rent bidding, limit fees for tenants breaking a lease and phase in minimum requirements for rental properties, such as hot and cold running water.

"What we want to do is to work towards greater national consistency," he said.

"But we're not in a position to flick the switch and just change eight pieces of legislation across states and territories immediately. And that's why we have that position there, which is to move towards."

But Greens housing spokesman Max Chandler-Mather slammed the proposal, describing the national cabinet plan as a "sick joke", which would only uphold status quo.

The Greens are continuing to insist there should be a two-year rent freeze or a cap on rental increases.

"They have not put a single dollar on the table to cap or freeze rent increases," Mr Mather-Chandler said.

Directly asked if the party will now back or continue to reject the Housing Australian Future Fund bill, which has been reintroduced to Parliament, he gave this warning. "We're going to keep dialling up the pressure," he said.

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"To be very clear, the bill's coming back on October 16. We're going to keep pushing as hard as we can to get something for the one-third of this country that rents and more money for public health."

The Greens and the Coalition teamed up to delay a vote on the bill in June. If the bill fails to pass the Senate again, the government would have a trigger to dissolve both houses and call an early election.

Other measure announced on Wednesday to boost housing supply, include a national planning reform blueprint, which includes changes to planning, zoning, land releases and other processes.

The ACT government said it was "well placed" to implement national cabinet reforms to boost housing supply and improve access and affordability.

"We will implement residential zoning changes as part of the Planning System Review and Reform Project," it said in a statement.

"These changes will provide more medium density housing choices in existing Canberra suburbs through a long-term program of gentle urbanism. New housing will be built close to transport, to public services, to economic opportunities."

The government welcomed the commonwealth's $3 billion incentive, which would give states and territories $15,000 for every home built after they meet their requirements under the original one million homes target.

States and territories will able to chose how they spend the money.

A $500 million competitive funding program was announced as another commonwealth incentive to get local and state governments to increase housing supply, which includes payments for the connection of essential services and amenities to support new developments.

Following national cabinet, Mr Albanese dodged questions about a Matildas public holiday after earlier backing away from a commitment to put the proposal on the agenda.

It comes after a number of state leaders expressed reservations or rejected the proposed public holiday.