Chapter 7 - CONCLUSION

REPORT ON HOUSING ASSISTANCE

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Chapter 7 - CONCLUSION

Is housing assistance effective?

7.1 As discussed in Chapter 2, the lack of consistent data on housing generally and on the private rental housing market in particular make it difficult to judge the `effectiveness' of the current forms of housing assistance. The Committee is aware that the data that is available are exclusively concerned with those who are already receiving some form of housing assistance, whether in the form of public housing or Rent Assistance. There is very little information on those low income people who experience housing stress but who do not receive Rent Assistance.

7.2 According to the Australian Institute of Health and Welfare (AIHW) about 17 per cent of Australian households (some 905,000 households) on low incomes experienced some level of housing need in 1991. This figure is not likely to have changed in the past six years. Not all of the 17 per cent would have been in receipt of Rent Assistance in order to cope with the private rental market. Of greater concern is the fact that 39 per cent of those who do receive the payment still experience problems of affordability. While the Committee recognises that a proportion of those might be deliberately choosing to live in areas of high rental cost, for a variety of reasons, many others would have no choice in this matter.

7.3 The AIHW's data confirmed that people in one parent households, indigenous households and young lone-person households made up the majority of those in housing need. [1] This view has received further confirmation through the evidence put to this inquiry. The Committee considers that it is important to recognise that special assistance is called for in certain instances. All the special needs groups discussed in Chapter 5 of this report are deserving of special housing assistance.

Balance between funding public housing and rent assistance

7.4 It is argued in Chapter 3 that there has been a shift in the last decade in Commonwealth funds for housing away from assistance for public housing through the CSHA towards rent assistance payments for a broader group of people in the community. The current public housing stock is such that 6 per cent of all Australians are able to live in public housing. The Committee would be gravely concerned if the public housing stock became so depleted that that proportion could not be maintained particularly since it is a form of tenure that meets the requirements of those low income groups with special needs. In the Committee's view, the present proportion of public housing available represents the minimum required housing support to those groups in our community who face the greatest need for appropriate (in terms of access to services or to cultural links essential to them) housing that is also affordable.

7.5 In the Committee's view, it is not appropriate to decrease the public housing stock before enough data becomes available to enable a realistic assessment of what is the overall level of need for public housing. Until that information is available, a sufficient stock of public housing should be maintained to support those groups identified in this report as having special housing needs.

7.6 The Committee is strongly supportive of increased assistance for community housing. Although it may cost marginally more than public housing, the Committee believes that the benefits in terms of fostering greater independence and community spirit far outweigh the extra costs. It is therefore of the opinion, that every move should be made by the Commonwealth, as well as the States and Territories (as per Recommendations 21 and 23 of this report) to increase assistance to that sector.

7.7 Finally, as it looks to the future of housing assistance, the Committee sees a need for governments at all levels to take steps to encourage ways of increasing private sector involvement in social housing. This is not because the Committee sees this as the solution to the problem of the shortage of capital for low-cost housing. Rather, it offers some possibilities for increasing (even if it is gradually and marginally) the pool of available funds for that purpose. The Committee commends those moves and urges others to explore the possibilities.

Senator Mark Bishop
Chairman

December 1997

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FOOTNOTES

[1] AIHW, Australia's Welfare, Services and Assistance 1995, Canberra, AGPS, 1995, p.59-60.