Liberal senator and shadow assistant minister for home ownership Andrew Bragg introduced a bill in the Senate on Wednesday to amend the Housing Australia’s Future Fund (HAFF) Act..

According to the explanatory memorandum, the bill introduces an additional restriction in HAFF’s governing legislation to prohibit investment in potential housing projects in which Cbus has or will invest.

“Official and legal affiliation of Cbus to the CFMEU [Construction, Forestry and Maritime Employees Union] made it an unviable party with which to do government business,” the memorandum said.

"Allowing Cbus and its member union, the CFMEU, to participate in HAFF further risks the integrity of taxpayers' funds."

In a statement Wednesday morning, Bragg announced he would introduce a bill to prohibit HAFF from making any payments to Cbus or housing-related entities funded by Cbus.

Bragg's reasoning centers on Cbus' alleged close ties to the CFMEU, which the government intends to put into administration soon in response to allegations of criminal links.

While the focus in recent weeks has been mostly on the CFMEU and the passage of a separate bill that would allow the government to take control of the troubled union, Bragg on Wednesday turned the spotlight back on Cbus with a list of serious allegations.

Namely, the senator claimed that alongside Labour, the CFMEU and Cbus were "locking young people out of the Australian dream".

“As it stands now, Cbus can be a participant and beneficiary of HAFF. Cbus is the only super fund that has committed public funding to HAFF,” he said, adding that the fund's involvement would allow the CFMEU to steal taxpayers' funds.

In November 2022 superfund has announced it has committed to investing up to $500 million over five years to support the building of new social and affordable homes made through HAFF as part of the government's National Housing Deal.

Earlier this year CareSuper, Hostplus, Rest, IFM Investors and Cbus said they were looking to partner collectively with social housing providers to support initial investment in social and affordable housing through HAFF.

“The irony of Labor looking to the CFMEU/Cbus cartel for help to solve the housing crisis that has blighted the construction industry is not lost on anyone.

“Three of Cbus Super's 14 directors are CFMEU employees. Labor and Cbus have failed to acknowledge any problem with CFMEU representatives sitting on the board of a $94 billion fund, despite the government seeking to put the CFMEU into administration.

InvestorDaily understands that only one Cbus director is a CFMEU employee, the other two were nominated to the board by the union.

Cbus says claims 'false'

In response to the introduction of the bill, Cbus Super Chief Investment Officer Brett Chatfield said any suggestion that a super fund would be a recipient of funds through HAFF was "erroneous".

"Superfund was not involved in the design, construction or approval of any of these projects," Chatfield said.

"Once the settings are correct and agreed upon, the Superfund will be the provider of debt financing to the relevant party, such as a community housing provider, and not the recipient of the HAFF project financing."

Chatfield compared the proposal to a ban on a super fund being able to buy Australian government bonds.

“Like many other investors, Cbus is invested in meeting the challenge of sheltering our nation where it is appropriate for our members.

"Our sole focus is to deliver the best possible financial return for our members, as we have done for the past 40 years as a top performing super fund."