By Dominic Giannini in Canberra

CAMPAIGNERS say Australia is facing its biggest housing crisis in living memory as they call for an urgent budget fix to bolster affordable and social housing.

More than 40 organisations, including the Australian Council of Social Service, Anglicare Australia, Homelessness Australia and the St Vincent de Paul Society, have signed an open letter to Treasurer Jim Chalmers demanding action.

Advocacy group Everybody’s Home, made up of a coalition of housing, homelessness and welfare organisations, is calling on the federal government to fund 25,000 social and affordable homes each year and wind back tax breaks like negative gearing for landlords.

“Whether it’s skipping a meal, cancelling a health appointment, or taking on a payday loan, every day more Australians are making sacrifices just so they can have a place to call home,” spokesperson Maiy Azize said.

“They are the ones paying the price for government inaction. If we want to address the biggest housing crisis in living memory, we can’t keep sticking with the status quo.

“We need funding and action that matches the scale of this emergency.”

The group pointed to research from the Australia Institute which showed an overwhelming majority of voters thought the budget should include more funding to build affordable housing.

Tasmanian independent senator Tammy Tyrrell is fighting for the government to commit to building 1200 affordable houses in her state through its proposed housing fund.

The government needs the vote of the Greens and two crossbenchers in the Senate to pass legislation to set up the housing investment fund, with all withholding their vote for a larger commitment.

The fund will spend up to $500 million a year to build social housing from the earnings on a $10 billion investment pool.

Negotiations are continuing with independent senator David Pocock and Senator Tyrrell as well as the Greens, who are demanding a national rent freeze.

The Tasmanian says she’s hopeful a deal will be reached.

“It’s looking hopeful. We’re still talking and they haven’t said no,” she told ABC radio on Monday.

“This is going to be important for Tasmania because at the moment we’re not promised any houses as such. I don’t want people here in Tasmania to feel like they’ve been ripped off.”