I would support the leasing of public land (for a peppercorn rent) for homesteading, but this is still ridiculously inefficient and in my view a paltry response to the grave injustices these people face in a rich developed nation such as ours.
We have a whole bunch of regional and rural towns which are constantly shrinking and leaving huge amounts of already built existing infrastructure intact and massively underutilised. Schools which are at less than half capacity, empty homes etc. Basically these towns are being hollowed out and becoming Geriatric centres.
The problem is no one will move in or remain there (everyone is moving out of those places) because there are no jobs and no hope of there being jobs - unemployment in these places is ridiculously high (and it has nothing to do with automation), it’s purely an internal trade deficit issue due to low export capacity. Something which is easily fixed, or at least offset by a strong Horizontal Fiscal Equilisation policy (which can take the form of a Job Guarantee).
This is not the silver bullet to the long touted goal of decentralisation - the other major problem being services and connectivity, but with sufficient other public investments in internet (and potentially rail) infrastructure it would be a far more potent and serious policy response. It would also finally stop taking people living in those regional/rural areas for granted.
It would cost very little to up the maintenance of the existing infrastructure in those towns and ensure all our citizens can have reasonable access to public services, rather than giving them the choice of camping out in the bush in some tents on crown land - something which most of them won’t do because they’re probably financially better off begging (and using services) in the city, hence why they generally congregate there.
The main things needed are job creation (demand injections), connectivity enhancing infrastructure and provision of public services, and sufficient land taxes to ensure the homes in those towns don’t become speculative vacant assets once people start moving in.
Also we don’t want to be giving away a free lunch to the landowners in those towns who benefit from the reverse in migration, or at least I don’t.