This is really good, but it's only scratching the surface. We need the government to not just be densifying its existing social housing, but also purchasing new land on which to build new social housing. We need the State Government to require increased density in cities' zoning plans, and for the local Councils to deliver on that. We need better laws to protect tenants who speak up for themselves not just in theory, but with real teeth in practice.
Also I like the idea of blocks of units being subsidised by the Government, but then containing x% of public housing
As long as it's truly public housing, and not "affordable" housing, which is typically a much weaker threshold to meet. Just 20% below market values for 5 years, in some cases (and after that time, it can be priced whatever they want!) There should still be incentives for more of that kind of housing too, but true public housing needs to take back a significant percentage of the market.