Australia’s peak body for low-income households has welcomed Labor’s $350 million plan to boost affordable homes, despite the Greens labelling it “a complete joke” and a “con job”.

The Albanese government will spend that money on affordable housing, co-investing with super funds and institutional investors.

It’s part of their larger plan to build one million “well-located” homes across the next five years, their cash used to get the private sector to cover the gap between market rents and subsidised rents.

National Shelter chief executive Emma Greenhalgh labelled the plan “heartening” but said more must be done to back those doing it tough.

“The government must ensure the one million homes that will be delivered will help those on the lowest incomes and those experiencing housing difficulties,” she said.

“Being able to secure housing that people can afford is vital to maintaining the health and wellbeing of individuals and communities … it is disappointing there has been no review or increase to Commonwealth Rent Assistance or income support payments, when we know housing is unaffordable right now.”

But Greens housing spokesperson Max Chandler-Mather pointed out the private sector had already built a million homes in the last five years, adding “these homes would have been built anyway”.

“The “housing accord” looks like a complete con job … planning deregulation and handouts to the private sector to build housing won’t fix the housing crisis, any more than any housing tax breaks or planning deregulation has in the past,” he said.

“The Treasurer couldn’t even bring himself to call them “affordable”, instead calling them “well-located homes”, but what we need is public, community and actually affordable homes, not more profit for property developers.”