Executive summary
In this report, the committee underscores the importance of
affordable, secure and suitable housing as a vital determinant of wellbeing.
But, based on the evidence, the committee finds that a significant number of
Australians are not enjoying the security and comfort of affordable and
appropriate housing—that currently Australia's housing market is not meeting
the needs of all Australians.
Sustained growth in median housing costs above the rate of
median household income growth in recent decades has made it increasingly
difficult for a growing proportion of Australians to afford housing that is
safe, secure and appropriate to their needs. Added to the general decline in
housing affordability, and indeed compounding the trend, the stock of
affordable housing—that is, housing appropriate to the needs of low- to
moderate-income households—has failed to keep pace with demand in recent
decades.
The committee does not believe the issue of housing
affordability in Australia is rightly categorised as either a 'supply-side
problem' or a 'demand-side problem'. With this in mind, it is clearly evident
that supply is currently not keeping pace with demand in the housing market. In
this context, policy interventions that add to demand without addressing or at
least accounting for supply-side constraints risk inflating house prices and exacerbating
affordability problems.
Worsening housing affordability is reflected in declining
home ownership rates. This decline is troubling for a number of reasons, not
least because home ownership can be an important means for people to achieve
financial and social wellbeing. Moreover, high rates of home ownership also
provide broader economic and social benefits to the community. As such, while
the committee believes governments should work to improve affordability
outcomes for all types of housing tenure, it considers it appropriate for
governments to promote home ownership.
The committee makes a range of recommendations directed
primarily toward improving home purchase affordability. They include state
governments phasing out conveyancing stamp duties, to be achieved through a
transition to more efficient taxes, potentially including land taxation levied
on a broader base than is currently the case. Other recommendations are
directed at improving the efficiency, effectiveness and equity of
infrastructure funding arrangements, which can have a strong influence on the
cost of new housing. Similarly, a number of recommendations are made with the
intention of ensuring land supply, urban planning and zoning processes have a
positive effect on housing affordability.
Evidence indicated that direct grants to home owners,
including First Home Owner Grants, need to be targeted carefully in order to be
effective. While the committee suggests that First Home Owner Grants might need
to be more tightly targeted, it also believes that shared equity programs are a
promising means of helping more Australians become home owners, and
consideration should be given to expanding such programs. Equally important,
the committee recommends that programs designed to help older Australians 'age
in place' when they want to, or downsize (or 'rightsize') to meet their needs,
should be explored.
A large amount of the evidence received during this inquiry
concerned the possible effect on home purchase affordability of existing
taxation arrangements for investor housing, in particular negative gearing and
the capital gains tax discount. The committee recommends that the Australian
Government investigate the effect of the current taxation treatment of
investment housing on home purchase affordability (among other things), and
consider if alternative approaches would help improve affordability.
The problems engendered by poor housing affordability are
also clearly evident in the private rental market. Here low- to medium-income
earners encounter significant problems accessing affordable and appropriate
housing, with significant numbers experiencing rental stress or even severe
rental stress. Indeed, one witness described the private rental market as a
brutal place for people on welfare payments.
Evidence indicated strongly that renting must be recognised
as a mainstream, and for some, a permanent form of tenure in Australia's
housing system and must be placed on Australia's national policy agenda as a
key issue to address poverty. Undeniably, the increasingly tight and expensive
private rental sector is locking some low- to moderate-income earners out of
affordable and appropriate housing. This situation indicates market failure and
suggests that market solutions to low cost housing will simply not emerge
naturally: that there is a clear need to find ways to attract private
investment into low cost and social housing. But currently, without government
incentives, affordable housing does not tend to appeal to private investors.
Many pensioners and people dependent on welfare or
disability payments, who find themselves priced out of the private rental
market, seek relief by accessing social housing, which provides a much needed
safety net. But here they also face fierce competition.
An adequate supply of social housing would mean that older
Australians are better able to age in place and not have to forgo daily
essentials simply to pay their rent, and people with disability are not left to
fend for themselves in substandard dwellings that make no allowance for their
particular needs. Also, an adequate supply of social housing would mean that women
escaping domestic violence would not be forced to stay in motels or, worse still,
remain in abusive relationships. Unfortunately, social housing is in short
supply and waiting lists are long. It has become 'housing of last resort' and
many people desperate for safe, secure and affordable housing are left to ask 'Where
do I go?'
The committee makes recommendations that address identified
deficiencies in Australia's rental market, including a concerted effort by
governments at all levels to commit to increasing the overall proportion of
social housing as a percentage of Australia's housing stock. Another cluster of
recommendations call for the review and reform of tenancy laws (security of
tenure, stability and fairness of rent rises, energy, comfort and safety
standards, evictions and dispute resolution mechanisms). In addition, they also
deal with the responsibilities and obligations of landlords when it comes to
energy efficiency and home modifications for tenants with particular needs.
The committee also targets its recommendations at
reinvigorating and improving current Commonwealth and state and territories
agreements—National Affordable Housing Agreement (NAHA) and partnership
arrangements including National Partnership Agreement on Remote Indigenous
Housing (NPARIH) and National Partnership Agreement on Homelessness
(NPAH). Furthermore, recognising that the National Rental Affordability Scheme
has started the much needed process of attracting private investors into
Australia's affordable rental market, the committee recommends building on its
success. The committee also looks at ways to make Commonwealth rental
assistance more effective. In addition, the committee recommends establishing a
Housing Supply Financing Task Force to investigate and advise government on
mechanisms, including housing supply bonds, for engaging private investment in
the affordable housing market.
Undoubtedly, Australia has a housing affordability
problem—the challenges are complex, diverse and interact differently in
different parts of Australia.
Considering the vital importance of housing to a person's
overall wellbeing and the current problems gaining access to affordable and
appropriate housing, the committee is convinced that access to affordable
housing is a matter of national importance. Furthermore, affordable housing
should be a national economic issue that needs to be a central and
cross-cutting theme of government.
The committee believes governments, including the Australian
Government, have a legitimate role, and indeed a responsibility, to use policy
interventions to improve the efficiency, efficacy and, critically, the
affordability of the housing market. Evidence indicated, however, that Australia's
housing policy and effort is fragmented, which has led to a good deal of
confusion and discord in attempts to address housing issues. The various
levels of government, and indeed different areas within the same government,
often have contradictory objectives that pull in different directions. Clearly,
one of the dominant messages coming out of this inquiry is the need for the Australian
Government to give coherence to the numerous local, state and national
incentives and schemes intended to contribute to the provision of affordable
housing. A long-term, integrated and coherent plan with consistent policy
governing a national approach to affordable housing is needed.
In the committee's view, the Australian Government should be
the driving force behind the development and implementation of this plan. As
such, the current lack of a dedicated Commonwealth housing minister is of concern.
Housing-specific policies, and policies that shape the housing market more
broadly, have direct and in some cases profound effects on the lives of
Australians across the socio-economic spectrum and in all tenure types. In this
context, the committee contends there is a compelling argument for a dedicated
Commonwealth housing minister able to provide cross-portfolio and national
leadership on this important policy issue.
Many of the key policy levers that shape the Australian housing
market and housing affordability rest with the Commonwealth. In particular,
demand-side levers such as taxation policy generally reside with the
Commonwealth. Although many supply-side policy levers fall within the remit of
the states and territories, the committee is firm in its view that the
Commonwealth is best placed to provide the leadership to coordinate and guide
the cross-jurisdictional reform necessary to improve the efficiency of housing
supply across Australia.
An institutional mechanism is required to bring all levels
of government together in order to deliver the overarching strategic approach
to affordable housing in Australia. The committee believes that the Council of
Australian Governments (COAG) provides the ideal structure within which the Commonwealth
and states and territories can develop the strategy and devise the best way to
implement it. A Ministerial Council on housing and homelessness within the COAG
system, as the committee, recommends, would allow representatives from key
government agencies, the not-for-profit organisations, industry bodies and
associations, academics and other housing experts to participate in, or
contribute to, the formulation of policy.
In this report, the committee recommends that the Australian
Government direct its attention and efforts to a number of areas, and makes
recommendations accordingly, including developing a long-term national
affordable housing plan that:
-
recognises affordable housing, including affordable rental
housing, as a mainstream and national policy objective and places affordable
housing at the forefront of government policy across Australia;
-
is spearheaded by a dedicated minister for housing and
homelessness and supported by an institutional infrastructure that would
provide the continuity, expertise, experience and established networks with all
levels of government;
-
fosters intergovernmental cooperation in solving housing issues
within a 'whole-of-system housing policy framework';
-
places a high priority on improving the supply-side efficiency of
the Australian housing market;
-
reinvigorates NAHA placing particular emphasis on improving transparency
and accountability, and introducing a robust evaluation and reporting
framework;
-
contains clear, consistent and longer-term funding commitments
adequate to meet the growing demand for social housing;
-
recommits to halving homelessness by 2025;
-
takes account of the findings outlined in this report including
facts such as the age pension assumes home ownership and the projected decline
in home ownership especially among older Australians;
-
builds trust and confidence that Australian governments at all
levels, led by the Commonwealth, are committed to increasing the supply of
affordable housing;
-
provides consistency, coherence and policy certainty for the
affordable housing sector that would enable housing providers to forge stronger
partnerships with the private sector;
-
recognises that significant volumes of public and private finance
would be required to meet the projected need for additional rental housing and
the importance of attracting institutional investors into the affordable
housing market;
-
understands that efforts to attract a significant level of
institutional investment into affordable housing have to date been largely unsuccessful;
and
-
makes institutional investment a core policy objective in
affordable housing.
Overall, and as highlighted in the strong and resounding
messages drawn from the bulk of evidence, the committee is firmly of the view
that:
-
the Australian Government cannot vacate the affordable housing
space or step back from its responsibilities to ensure that every Australian
has access to affordable, safe and sustainable housing; and
-
in the long run, investment in affordable housing returns
dividends not only to the individual struggling to access safe, secure and
affordable housing but to the budgets of the Australian, state and territory
governments and ultimately the Australian taxpayer (by having a more productive
community with reduced costs for social, health and unemployment services and
for justice and policing.)
Recommendations
Recommendation 1 paragraph
4.15
The committee recommends that the Australian Government
appoint a Minister for Housing and Homelessness, with the portfolio to be
located in a central agency such as the Department of the Prime Minister and
Cabinet or the Treasury, or in the Department of Infrastructure with formal
links to the central agencies.
Recommendation 2 paragraph
5.65
The committee recommends that, as a matter of priority, the
Commonwealth and states and territories agree to establish a ministerial
council on housing and homelessness within the Council of Australian
Governments ministerial council system.
Recommendation 3 paragraph
5.66
The committee recommends the establishment of a new body,
ideally a statutory body, similar in function to the former National Housing
Supply Council, but also with responsibility for monitoring performance against
a new affordable housing plan (see recommendation 4) and measuring housing need
according to key demographic trends, socio-economic and cultural factors.
Recommendation 4 paragraph
5.67
The committee recommends that the Commonwealth and states
and territories collaborate in the development of a long term, national
affordable housing plan, ideally to be developed through a new ministerial
council on housing and homelessness within the Council of Australian
Governments ministerial council system (see recommendation 2). While the shape
of the plan and its relationship to the National Affordable Housing Agreement
would be determined through the development process, the committee recommends
that the plan:
- include performance indicators, which should be monitored and reported
on by the body recommended at recommendation 3; and
-
include base funding, possibly drawn from the National Affordable
Housing Agreement funding envelope, with consideration also given to including
Commonwealth reward payments linked to achievement by individual jurisdictions
against the performance indicators.
Recommendation 5 paragraph
6.40
The committee recommends
that state and territory governments phase out conveyancing stamp duties, and
that as per the recommendations of the Henry Review, this be achieved through a
transition to more efficient taxes, potentially including land taxation levied
on a broader base than is currently the case.
Recommendation 6 paragraph
6.66
The committee recommends
that all states and territories report to the Council of Australian Governments
(COAG), preferably through a new ministerial council on housing and homelessness
(see recommendation 2), on what policy changes, if any, have been made to
ensure infrastructure charges are consistent with the four principles agreed
through COAG in July 2012.
Recommendation 7 paragraph
6.67
The committee recommends
that state and local governments investigate the possibility of using Tax
Increment Financing and other innovative finance mechanisms to fund
infrastructure for new housing developments.
Recommendation 8 paragraph
7.57
The committee recommends
that the proposed new Council of Australian Governments ministerial council on
housing and homelessness (see recommendation 2) investigate ways to
improve the consistency, timeliness and utility of government-collected and
published information about land supply across jurisdictions.
Recommendation 9 paragraph
7.58
The committee recommends
that the Australian Government:
- show leadership in regard to national urban planning policy and urban
regeneration, given the role both can play in improving and driving housing
affordability outcomes across Australia's major urban centres;
- reinstate the National Urban Policy and Major Cities Unit given the
former role both played in driving housing affordability policy and outcomes at
the national level; and
- show leadership in its policy capability and engagement with the states
and territories with regard to urban planning policy.
Recommendation 10 paragraphs
7.59–7.60
The committee recommends
that the Australian Government consider developing a long-term strategy for
regenerating Australia's urban centres and transport corridors. This strategy
might be incorporated into a revised national urban policy, and would provide
for an intergovernmental and coordinated approach to infrastructure delivery,
including upgrades to social infrastructure, and the identification of
redevelopment opportunities for government-owned land (as outlined in
recommendation 11).
The committee further
recommends that the Australian Government consider re-establishing the Urban
Policy Forum, reconnecting with key stakeholders from the public and private
sectors, academia and the community, and including responsibility for reviewing
jurisdictional performance against targets relating to urban regeneration.
Recommendation 11 paragraph
7.61
Government-owned land,
whether state or Commonwealth-owned, represents a potential land supply for
affordable housing. Current governance, transparency and divestment
arrangements could be improved so that this potential might be realised. The
committee recommends:
-
the creation of a transparent, public, up-to-date register of government
land and buildings that are considered 'surplus' or on the divestment program,
including the location and size of this land, and any development restrictions
attached to it;
-
the direct involvement of the Commonwealth agency with housing policy
responsibility in any asset divestment programs, and the possible application
of affordable housing targets in divestment programs;
-
the development of innovative partnerships involving public,
not-for-profit, community and private consortiums that develop affordable and
diverse housing on government land and buildings; and
-
the exploration of innovative models, such as community land trusts, on
government-owned land where the government retains the land or a share in the
development, but a community or not-for-profit housing provider develop
affordable housing.
Recommendation 12 paragraph
8.38
The committee recommends a
separate parliamentary inquiry into the Australian prefabricated housing
industry, and its potential role in improving housing affordability and
stimulating new activity in the manufacturing sector. This inquiry should
consider, among other things:
-
the development of a comprehensive approach to creating a sustainable
prefabricated building and insulated panel production industry;
-
the possibility of Commonwealth prefabricated housing targets in a
national affordable housing plan (see recommendation 4);
-
the possibility of a Commonwealth prefabricated modular housing industry
package to provide support for research and development, skills and training,
assistance to establish new production and manufacturing facilities, and world
class demonstration projects.
Recommendation 13 paragraph
9.70
The committee recommends that, to the extent such matters are
not addressed by the White Paper on the Reform of Australia's Tax System, the
Treasury should prepare and publish a study of the influence of negative
gearing and the capital gains tax discount on home purchase affordability and
on the rental market (including the effect on security of tenure for renters),
the effect of these arrangements on revenue, and their effect (if any) on
economic productivity. This study should examine the likely effects of
alternative taxation treatments of investor housing. Alternative approaches
considered in this study (including, where appropriate, in combination) should
include:
-
a housing-specific 'quarantine' approach, wherein losses for investment
properties can only be deducted against rental income, with provision for
losses in excess of rental income to be carried forward and deducted against
future rental income and capital gains;
-
a broader 'quarantine' approach, wherein interest expenses on all
investments, including but not limited to housing assets, are only deductible
in any given year up to the amount of investment income earned in that year,
with provision for losses in excess of this amount to be carried forward and
deducted against future investment income and capital gains;
-
limiting the application of negative gearing arrangements to new housing
stock, or designated new affordable housing stock;
-
limiting the application of negative gearing to a certain number of
properties (assessing options for various limits in this regard);
-
options for phasing out negative gearing on investment housing;
-
applying the savings income discount recommended in the Henry Review to
investment housing, with consideration given to the impact of this approach
both with and without the implementation of the Henry Review's recommendations
in relation to housing supply and housing assistance; and
- reducing or removing the capital gains tax discount for investment
properties, or reverting to the pre-1999 system of taxing real rather
than nominal capital gains on investment assets.
Recommendation 14
paragraph 11.86
The committee recommends
that, to the extent state and territory governments maintain first home buyer
grants, they apply appropriate value caps and limit their availability to new
housing stock (with appropriate exceptions for certain groups of buyers), and
consider introducing means testing to ensure that the grants are appropriately
targeted.
Recommendation 15
paragraph 11.87
The committee recommends
that the Australian Government consider introducing a scheme designed to assist
first home buyers save for a home deposit, drawing as appropriate on the
experiences of the First Home Saver Account scheme.
Recommendation 16
paragraph 11.88
The committee recommends
that all governments, through the proposed ministerial council on housing and
homelessness (see recommendation 2) or another appropriate intergovernmental
forum, investigate ways to expand shared equity programs, including both
government-backed and private-sector backed programs. The committee further
recommends that, as part of this process, consideration be given to other
mechanisms to facilitate affordable home ownership, such as community land
trusts, rent to buy schemes, and the like, and consider the inclusion of such
mechanisms within the national affordable housing plan proposed at
recommendation 4, or the National Affordable Housing Agreement.
Recommendation 17
paragraph 12.42
The committee recommends that the government investigate new
policy settings that will address barriers to downsizing (or 'rightsizing') by
retirees, including schemes along the lines of the Housing Help for Seniors
pilot.
Recommendation 18
paragraphs 13.97–13.98
As a national policy issue,
affordable home ownership tends to overshadow affordable renting even though
many Australians struggle to access affordable and appropriate housing in the
rental market. With this in mind, the committee recommends that the Australian
Government recognise affordable renting as a mainstream form of tenure in
Australia and place it prominently on the national policy agenda.
Given that renting will be the only form of housing for many
Australians, one of the key challenges for government is to change the traditional
view of renting as a short-term transitional phase. The committee recommends
that the Australian Government in collaboration with the states and
territories, through the recommended ministerial council on housing and
homelessness within COAG, start the urgent process of turning around this
acceptance of short-term insecure tenure as normal. As a first step, the
committee recommends that the proposed ministerial council consider tenancy
regulations in the various jurisdictions with a view to delivering greater
security for long-term renters.
Recommendation 19
paragraph 13.104
Considering the evidence
presented to this inquiry, the committee recommends that the states and territories
review their tenancy laws to ensure that all rental properties are required to
meet minimum standards.
Recommendation 20
paragraph 13.105
The committee also
recommends the Australian Government:
-
together with the states and territories, investigate national
minimum standards that would set specific minimum standards including security
of tenure, stability and fairness of rent prices, a new efficiency and comfort
standard, safety and security of the home, and better protection for groups in
marginal housing;
-
review (and increase) funding levels and access to tenancy advice
services;
-
in recognition of the value of tenancy advice services, make
funding through the National Affordable Housing Agreement (NAHA)
conditional on the states and territories ensuring that they have in place
adequate tenancy advisory services; and
-
include as a priority for the re-established Housing Supply
Council (see recommendation 2) to review and publish detail on the current
national rental affordability gap.
Recommendation 21
paragraph 13.106
Recognising the reluctance of tenants to exercise their
rights under the respective residential tenancies legislation in each state,
the committee recommends that the states review their existing system for settling
tenancy disputes. The committee recommends further that the states consider
establishing an independent body such as an ombudsman or giving specific powers
to their consumer affairs agencies to act for tenants. Again, the committee
recommends that the Australian Government act as a catalyst through the COAG
process to encourage the states and territories to establish dispute resolution
bodies that provide easier and less expensive access to a mechanism for the
resolution of tenancy matters.
Recommendation 22
paragraphs 14.55–14.56
The committee recognises that public housing has now become
the housing of last resort for many Australians with supply unable to meet the
demand and waiting lists far too long. With this situation in mind, the
committee recommends that the Australian Government, together with the states
and territories, commit to retaining an adequate supply of public housing with
the goal of increasing the overall proportion of public housing as a percentage
of housing stock. Targets should be established for both the proportion of social
housing and the reduction in existing waiting lists as part of the
national housing plan, working through COAG and the re-established National
Housing Supply Council. The initial goal would be for the Australian Government
together with the states and territories to fund public housing in order to
lift the percentage of public housing from its current low base and to reach
agreement on a plan to achieve this objective.
The committee recommends further that an underlying
principle shaping the development or redevelopment of public housing must be to
prevent the concentration of people with complex problems in the same locality
and in locations removed from important services—transport, education, health,
welfare and employment.
Recommendation 23
paragraph 15.54
The committee recommends that the Australian Government
request the Productivity Commission undertake an inquiry into the merits of
transferring public housing to the community housing sector with particular
emphasis on the advantages and disadvantages of transferring property title.
Recommendation 24
paragraph 15.57
Consistent with the recommendation for the Australian
Government to increase the overall proportion of public housing as a percentage
of housing stock, the committee recommends that the Australian Government
together with the states and territories commit to achieving a higher
proportion of overall social housing as a percentage of Australia's housing
stock. This recommendation recognises that currently social housing in
Australia forms only a small proportion of Australia's housing stock and is
falling far short of meeting demand.
Recommendation 25
paragraph 15.69
The committee recommends that the Australian Government in
collaboration with the states and territories monitor carefully the transfer of
public housing stock to the community sector to ensure that this transfer does
not adversely affect tenants of public housing or cause them unnecessary
anxiety if required to vacate their dwelling. The recommendation is intended to
ensure that tenants are consulted about the changes and that their rights as
tenants, including security of tenure, of rent levels, and of access to dispute
resolution mechanisms is preserved.
Recommendation 26
paragraph 16.26
In light of the anticipated rise in the number of older
Australians in the private rental market, and the insecure tenancy confronting many
older renters, the committee recommends that the Australian Government look
closely at its aged care policy so that it takes account of the particular
difficulties confronting older Australians in the rental market. The aim would
be to determine how policies designed to assist older Australians remain in
their home could take better account of, and accommodate, the added
difficulties for older people accessing safe and secure housing and in
conducting modifications to rental dwellings, and more broadly renting in the
private rental market.
Recommendation 27
paragraphs 16.88–16.89
The committee recommends that the Australian Government
together with the states and territories commit to ensuring that adequate
funding be made available so that women and children escaping domestic violence
are housed in secure and appropriate housing with the necessary support network
that would allow them to remain in a safe environment. This approach would mean
that women and their children would experience as little social and educational
disruption as possible and that the pathway to more permanent housing would be
easier. A priority would be to consider the introduction of programs throughout
Australia such as New South Wales' Staying Home Leaving Violence initiative,
which is designed to protect women who want to live separately from a violent
husband or partner, but remain in their home.
The committee also recommends the Australian Government reverse
the cuts to the capital program in National Partnership Agreement on Homelessness
(NPAH) and apply needs-based supply and services program as part of the
national affordable housing platform in recommendation 30 (the cuts are
discussed in chapter 18).
Recommendation 28
paragraph 16.91
The committee recommends that, in its consideration of
current tenancy law, the proposed ministerial council also place a high
priority on the obligations and responsibility of landlords when it comes to
house modifications for those with particular housing needs. The committee
recommends that the council look at measures, such as tax incentives, to
encourage landlords to improve the energy efficiency of their properties and to
make required modifications for tenants with disability.
Recommendation 29
paragraph 17.36
The committee recommends that housing should be included in
the Prime Minister's Closing the Gap report: that access to affordable
and appropriate housing must be regarded in the same context as Indigenous
education, health and employment.
Recommendation 30
paragraph 18.75
The committee recommends
that the Australian Government:
-
take a definite and high profile role in placing affordable
housing at the forefront of government policy across Australia;
-
make a strong and certain recommitment to NPAH (including considering
reintroducing ongoing capital component) and its continuation for at least ten
years;
-
task Homelessness Australia with investigating and quantifying
the service delivery gap to people experiencing homelessness, and commit to
funding NPAH to meet that gap;
-
recommit to the target to at least halve homelessness by 2025 (originally
set at 2020 in the 2008 White Paper) with set milestone at two yearly intervals
to track and report on progress and to offer supported accommodation to all
rough sleepers who want it;
-
work to achieve multi-party support for this long-term goal and,
noting that this problem cannot be solved at any one level of government, encourage
states and territories to commit to this target and to coordinate their
response;
-
take a longer-term approach when funding programs or agreements that
would provide certainty of funding so that organisations and people engaged in
delivering programs can, with confidence, plan ahead and seek to achieve
continuity in the services they provide to homeless people; and
-
introduce an urgent capital program with the Australian
Government and the states sharing responsibility for funding through NPAH to
provide fast build, sustainable and appropriate emergency housing and
affordable rental housing to meet the needs of Australians rough sleeping and
seeking appropriate housing, with the target of housing by 2020 all rough
sleepers who seek to be housed.
Recommendation 31
paragraph 18.77
Noting that much of the
evidence presented before this committee was consistent with the Australian
National Audit Office's (ANAO) findings on the implementation of NPAH, the
committee recommends that COAG establish a working group to review the ANAO's
findings and reassess the implementation of NPAH to ensure that NPAH has:
-
clear performance measures that can be tracked and verified;
-
a requirement for states and territories to report to government
on their expenditure on housing under NPAH complemented by a reporting
framework that measures the implementation of reforms against set benchmarks
and the extent to which they are being delivered on the ground;
-
Commonwealth funding linked to the achievement of agreed
milestones; and
-
investigate Centrelink as a one stop shop to assist people
experiencing or at risk of homelessness with referral and in-house expertise to
link clients with services and housing.
Recommendation 32
paragraph 18.78–18.79
The committee recommends
that the Australian and state and territory governments recognise the important
work of advocacy and peak organisations in housing and homelessness and provide
adequate support to enable them to continue to deliver their much needed
services.
The committee recommends
further that the Australian Government reinstate funding for the peak bodies
that represent and provide advice on homelessness, community housing and
housing and tenancy policy.
Recommendation 33
paragraph 18.87
The committee notes that the advice provided to the committee
on the Williams decision and the consequences for Commonwealth funding for
housing and homelessness simply adds to the uncertainty around the future of
Commonwealth funding in this area. The committee recommends that the Australian
Government clarify what the consequences are for Commonwealth funding grants
for housing and homelessness that flow from the Williams decision and how it
intends to respond to them.
Recommendation 34
paragraph 19.29
The committee recommends
that through COAG, the National Affordable Housing Agreement (NAHA) be
reinvigorated with particular emphasis on improving accountability and
transparency. The committee recommends that the following particular reforms of
NAHA should be considered and acted upon:
-
expand the agreement to include all forms of housing
assistance—funding for social housing, affordable rental housing, rent
assistance and the various programs to support people to remain housed;
-
develop measurable benchmarks and ensure these benchmarks are
used to evaluate the effectiveness of government expenditure on affordable
housing;
-
improve the collection and publication of data, especially on the
number of new homes added to the pool of social housing; and
-
ensure that funding is tied directly to concrete outcomes, for
example, by tightening conditions on Commonwealth funding to the states that
would realise growth in the stock of social housing.
Recommendation 35
paragraph 19.31
The committee recommends that the Federation White Paper
process consider carefully NAHA in this critical area of transparency and
accountability. Importantly, that the committee's findings feed into the White
Paper process with the aim to improve NAHA so that a robust evaluation and
reporting framework is established ensuring that the funds allocated to
improving affordable housing can be tracked and the intended outcomes measured
and evaluated.
Recommendation 36
paragraph 21.56
The committee recommends that:
-
in the absence of any credible alternative scheme designed to
increase the supply of new affordable housing and considering steps have
already been taken to improve the administration and implementation of the National
Rental Affordability Scheme (NRAS), that the Australian Government continue
with NRAS round 5;
-
the Federation White Paper process look at the Queensland NRAS
model, which appeared to have much tighter controls over eligibility, as a
means of determining where further improvements or fine-tuning could make the
system more robust and effective;
-
the Federation White Paper process look at how NRAS or a
replacement scheme could be reframed to take account of the particular housing
circumstances of regional Australia and ensure that NRAS housing was better
targeted to areas in most need; and
-
as part of the Federation White Paper process, a thorough cost
benefit analysis of NRAS be undertaken, and that any such analysis include
comparison of forgone revenue from demand subsidies such as the first home
owners grant, and negative gearing and capital gains tax.
Recommendation 37
paragraph 21.57
The committee recommends
that when considering NRAS, the Federation White Paper process:
-
take note of the concerns raised by many submitters and witnesses
about the need for continuity and certainty in order to attract and to gain the
confidence of private investors; and
-
ensure that any proposed refinement or a replacement of the
scheme:
-
places the highest priority on restoring and building on the
initial success that NRAS had in attracting private investors;
-
provides investors with certainty regarding the scheme by
committing to a consistent flow of incentives extending over a period of at
least five years; and
-
takes note of lessons to be learnt from NRAS such as the need for
clear and tight eligibility criteria and better targeting to areas of need (the
ANAO audit should provide a sound starting point).
Recommendation 38
paragraph 21.68
The committee recommends that the Australian Government,
through legislative recognition of charitable status, resolve any uncertainty
over the effect that participation in NRAS or any similar scheme would have on
the tax status of entities operating as charities, or public benevolent
institutions (PBIs).
Recommendation 39
paragraph 22.45
The committee recommends
that the Australian Government:
-
review the eligibility criteria for Commonwealth Rental Assistance
(CRA) to ensure that it is targeted at those most in need;
-
review the method of indexing CRA with a view to retaining its
adequacy; and
-
review the adequacy of CRA.
Recommendation 40
paragraphs 23.45–23.46
The committee recommends
that the Federation White Paper process give
due consideration to the proposal for the introduction of housing supply bonds
using the Australian Housing and Urban Research Institute's (AHURI) research as
a starting point for its consideration.
The committee also
recommends that the Australian Government establish a cross-sectoral high level
industry and government Housing Supply Financing Task Force, as proposed in the
AHURI report. It would provide advice to governments on the potential for a
Housing Supply Bond in Australia and investigate other mechanisms for private
investment.
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