REPORT ON HOUSING ASSISTANCE
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MINORITY REPORT BY GOVERNMENT SENATORS
Government Senators note that Australia's public housing stock is around
390,000 and Rent Assistance is paid to approximately 900,000 recipients
in the private rental market.
Low income tenants in the private rental market generally pay a higher
proportion of their income in rent than public housing tenants. Around
40 per cent of low income private rental tenants pay more than 30 per
cent of their income in rent whilst all public housing tenants pay 20
- 25 percent of their income in rent. Also, the average subsidy provided
to private, low income, tenants is around $1,600 per year compared with
a subsidy of $4,000 per year for public housing tenants.
The significant disparity between the level of assistance provided to
low income people in private versus public housing and a desire to achieve
the most efficient use of total State and Commonwealth housing assistance
expenditure is the driving force behind the Commonwealth's desire to pursue
housing reform. Proposals for change to the division of responsibilities
for housing assistance were discussed through the Council of Australian
Governments (COAG) between 1995 and 1997. These changes involved:
- Commonwealth funding of rental subsides for both public and private
tenants;
- negotiated removal of Commonwealth capital stream
- establishment of clear roles of responsibility between State, Territory
and Commonwealth governments.
These proposals were first brought forward by the former Keating Government
and were given in principle support by the Howard Government. Given a
reluctance on the part of some State and Territory Governments to pursue
reform at this time, the Commonwealth has removed housing reform from
the COAG agenda and is actively working with State and Territory governments
in a bilateral framework. The Commonwealth remains firmly committed to
the dual objectives of achieving the most efficient use of housing assistance
expenditure and addressing the disparity of the level of assistance between
the private and public sector. Government Senators note and endorse the
positive approach adopted by a number of State and Territory governments
in undertaking reform within their respective jurisdictions.
Government Senators acknowledge that public housing will continue to
play an important role in meeting the special needs of those most disadvantaged
in our community. We are also mindful of the demand on housing assistance
and the need to better target resources to those most disadvantaged, and
in doing so, strike an equitable, practical balance between public housing
and rent assistance. The development of future arrangements under the
Commonwealth State Housing Agreement, due to expire on 30th June 1999,
will very properly dictate the degree and form this balance will take.
In this context Government Senators do not support the Committee in making
prescriptive recommendations which will in any way pre-empt Commonwealth
State discussions or limit the range of policy options available and possibly
jeopardise achieving the best housing assistance system for the community
as a whole. On this basis Governments Senators cannot support recommendations
3 through to 6 as they overly limit the scope of any negotiations associated
with the delineation of Commonwealth State roles and responsibilities.
Recommendation 11, suggesting the Commonwealth consider using a region-based
formula for rent assistance payments, should be considered in the context
of broader reform to housing assistance.
Government Senators also note a number of the Committee's recommendations
suggest Commonwealth intervention into matters and areas which are correctly
the jurisdiction of the States and Territories. Recommendations 8,9,13,14,15,
and 19 fall into this category. Each State and Territory should regard
these recommendations in the context of their own individual circumstances
and competing priorities.
Finally, with regard to recommendation 10, Government Senators note that
the sharers measure is designed to deliver greater equity between the
assistance provided to single people sharing accommodation and other people
in similar situations. Any review of this policy should be consistent
with this objective.
Senator Sue Knowles, Deputy Chairman
(LP, Western Australia)
Senator Karen Synon
(LP, Victoria)
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