Housing is fundamental to the welfare of all Australians. From a social perspective it promotes and improves employment, educational and health outcomes. From an economic perspective it is a driver of participation and productivity as well as consumption, investment and savings in the economy. Recognising the importance of affordable housing, the role it plays in the welfare of lower income households and the current significant housing pressures these households face, the Council on Federal Financial Relations asked the Affordable Housing Working Group (‘the Working Group’) to investigate innovative financing models aimed at improving the supply of affordable housing. The Working Group was asked to focus on models that attract private and institutional investment at scale into affordable housing and to report back to Heads of Treasuries on its findings and recommended next steps.