Bills Digest No. 63, 2017-18
PDF version [366KB]
Matthew Thomas
Social Policy Section
10 January 2018
Contents
Purpose of the Bill
Structure of the Bill
Background
The Government’s Automatic Rent
Deduction Scheme (ARDS) proposal
The Rudd-Gillard Government’s
proposed rent deduction scheme
National Rental Affordability Scheme
changes
Committee consideration
Senate Standing Committee for the
Scrutiny of Bills
Policy position of non-government
parties/independents
The ALP
The Greens
Independents
Position of major interest groups
Financial implications
Statement of Compatibility with Human
Rights
Parliamentary Joint Committee on
Human Rights
Key issues and provisions
Automatic Rent Deduction Scheme
Income management
Income management as a form of
paternalism
Voluntary rental deduction
arrangements
Objects of the ARDS
Who may request a deduction under the
ARDS?
When may a social housing lessor
request a deduction?
Content of the request
Making the deduction
Schedule 3—Amendments to the National
Rental Affordability Scheme Act
Concluding comments
Date introduced: 14
September 2017
House: House of
Representatives
Portfolio: Social
Services
Commencement: Schedules
1 and 2, the later of the day after Royal Assent and 1 March 2018;
Schedule 3 items 1, 2, 4, and 6, 1 May 2018; Schedule 3 items 3 and 5, the
day after Royal Assent.
Links: The links to the Bill,
its Explanatory Memorandum and second reading speech can
be found on the Bill’s home page, or through the Australian
Parliament website.
When Bills have been passed and have received Royal Assent,
they become Acts, which can be found at the Federal Register of Legislation
website.
All hyperlinks in this Bills Digest are correct as
at January 2018.
Purpose of
the Bill
The purpose of the Social Services Legislation Amendment
(Housing Affordability) Bill 2017 (the Bill) is to:
- amend
the Social
Security (Administration) Act 1999, the Social Security Act
1991 and the A
New Tax System (Family Assistance)(Administration) Act 1999 to establish
an Automatic Rent Deduction Scheme (ARDS) that would enable tenancy charges and
other housing costs to be deducted from the income support and Family Tax
Benefit payments of all social housing tenants and
- amend
the National
Rental Affordability Scheme Act 2008 to require each rental payment
made under the National Rental Affordability Scheme (NRAS) to be at least 20
per cent less than the market value rent for the dwelling; permit greater
flexibility with regard to the prescribing of maximum vacancy periods of NRAS
dwellings; allow for the variation of conditions of NRAS allocations after they
have been made; and allow for NRAS allocations to be transferred from one
dwelling to another.
Structure
of the Bill
The Bill is made up of three schedules.
The Bills Digest Key issues and provisions section focuses
mainly on Schedule 1.
Background
The
Government’s Automatic Rent Deduction Scheme (ARDS) proposal
The Government indicated its intention to establish a
Compulsory Rent Deduction (CRD) Scheme as a part of its 2016–17 Budget
measures.[1]
The CRD was the same in its essentials as the proposed ARDS.
According to the Department of Human Services website, the
CRD was to commence on 1 July 2017 and be ongoing.[2]
It may be the case that the proposed new scheme was delayed as a result of
negotiations with the states and territories.
The
Rudd-Gillard Government’s proposed rent deduction scheme
In 2013 the Rudd-Gillard Government attempted to introduce
a Housing Payment Deduction Scheme (HPDS) that would have allowed for
deductions to be made from the income support payments of public housing
tenants for the payment of rental arrears, and/or outstanding household
utilities payments where these were included under a tenant’s lease.[3]
The main stated reason for the HPDS was the Government’s desire to reduce the
risk of public housing tenants being evicted for the non-payment of rent and
becoming homeless.
In the 2008 White Paper on reducing homelessness—the Road
Home—the Rudd-Gillard Government committed to ‘work with the states and
territories to introduce compulsory rent payments from Centrelink benefits for
tenants in public housing to eliminate the risk of eviction due to non-payment
of rent’.[4]
Similarly, the National Affordable Housing Agreement (NAHA), which was established
in 2009, commits Australian governments to ‘providing compulsory rent
deductions and improved information exchange between the Commonwealth and the
states and territories to improve the operational efficiency of public housing
and to reduce evictions from public housing’.[5]
At the March 2013 Council of Australian Governments (COAG)
Select Council on Housing and Homelessness meeting ‘Ministers confirmed their
in-principle commitment to pursuing the Housing Payment Deduction Scheme which assists
in the prevention of evictions and possible homelessness of public housing
tenants due to unpaid rent. It will also improve efficiency by reducing the
cost of managing arrears for public housing authorities’.[6]
Following the in-principle agreement of the states and territories, the
Rudd-Gillard Government released an Exposure Draft of the Social Security
Legislation Amendment (Public Housing Tenants’ Support) Bill 2013 for
public comment by 23 April 2013. The Bill was to enable the HPDS described above.
In response to issues raised by stakeholders in the
consultation process the Rudd-Gillard Government made substantial changes to
the Exposure Draft version of the Bill.[7]
The Bill ultimately lapsed at the end of the 43rd Parliament and the HPDS was
not implemented.[8]
National
Rental Affordability Scheme changes
The NRAS has been subject to two Australian National Audit
Office (ANAO) performance audits in recent years. The report of the first audit
was released in 2015 and the second in 2016.
The first of the audits found that the administration of the
application and assessment process and management of reserved allocations for the
NRAS had not been effective.[9]
The second found that the effectiveness of the Department of Social Services’
administration of NRAS allocations and incentive claims had been mixed. Among
other things, the ANAO identified as a problem the complex regulatory framework
that had developed as a result of continual amendment to address issues with
the scheme as they had arisen. The ANAO suggested that the Regulations ‘could
be reviewed with the aim of simplifying and clarifying aspects of their
operation’.[10]
Following a consultation process with NRAS stakeholders,
submissions for which closed in December 2016,[11]
and a Departmental review of the scheme,[12]
the Government developed the amendments in the Bill, which seek to clarify ‘ambiguous
provisions in the NRAS Act and lay the foundation to strengthen and simplify
the future operation and administration of the scheme’.[13]
Committee
consideration
The Bill was referred to the Senate Community Affairs
Legislation Committee for inquiry and report by 27 November 2017. On 27
November 2017 the Senate granted an extension of time for reporting until 6 December
2017.[14]
The Committee report noted that social housing rent
collection rates are high and that evictions resulting from rental arrears
uncommon. It also noted the concerns of many submitters to the inquiry that the
ARDS may not be effective in reducing homelessness and rental costs for low and
moderate income households.[15]
However, ultimately the Committee supported the proposed
ARDS on the grounds that it could lead to a more efficient social housing
system and a reduction in the risk of homelessness due to tenant evictions on
the basis of rental arrears.[16]
Nevertheless, the Committee did recommend that the
Government consider various possible changes to the ARDS, including imposing a
cap on the maximum deduction that could be made from a tenant’s income support
payment; clarifying how the scheme would interact with other forms of income
management and Commonwealth deductions; providing for tenants to be notified
about various aspects of requests for automatic deductions from their payments;
and providing a means for tenants to request a review of a decision made by the
Secretary.[17]
The Committee supported the proposed changes to the NRAS in
Schedule 3 of the Bill.[18]
Senate
Standing Committee for the Scrutiny of Bills
The Senate Standing Committee had no comment on the Bill.[19]
Policy
position of non-government parties/independents
The Australian Labor Party (ALP) and the Australian Greens
(the Greens) positions with regard to the Bill are outlined in their dissenting
reports which are a part of the Senate Community Affairs Legislation Committee
report on the Bill.
The ALP
ALP Senators on the Committee support the introduction of
automatic rent deductions for social housing tenants in principle, on the
grounds that they can help to prevent homelessness. This support is in keeping
with the ALP’s own attempt to introduce a Housing Payment Deduction Scheme in
2013.
However, ALP Senators on the Committee were concerned that
the ARDS scheme proposed in the Bill ‘goes too far, is too broad and could be
detrimental if applied as written in the Bill’.[20]
They welcomed each of the recommendations of the majority report, but advocated
that the Government impose a cap on deductions and clarify how the ARDS would
interact with other forms of income management by means of amendments to the
Bill.
ALP Senators on the Committee also recommended that the
Bill be amended to only allow an amount to cover rent and utilities to be
deducted; ensure that where tenants have their income support payments managed,
deductions are taken from the quarantined portion of the payment and not the
unrestricted portion; not allow an amount for rental arrears as a result of the
suspension of a payment to be deducted in a single fortnightly payment; and
require the lessor to inform the tenant of a change in the amount of payment to
be deducted.[21]
The Greens
The Greens are opposed to the proposed ARDS, arguing that it
is ‘another example of the Government imposing harsh and unfair measures on
individuals receiving income support, demonising them for their need for
Commonwealth assistance’.[22]
They insist, along with many of the submitters and witnesses to the inquiry
into the Bill, that the amendments in Schedules 1 and 2 ‘will not help to
reduce homelessness for social housing tenants’.[23]
The Greens expressed concerns about a number of aspects of the ARDS, including
the scheme’s all-encompassing scope, the lack of a cap on deductions, and the
perceived absence of procedural fairness.
Independents
The independents do not appear to have publicly expressed
a position with regard to the Bill.
Position of
major interest groups
It has been reported that the NSW Government strongly
supports and has been advocating for the introduction of an automatic rent
deduction scheme. Former NSW Minister for Family and Community Services and
Minister for Social Housing, Mr Brad Hazzard, is said to have argued that the
automatic deduction of rent from income support recipients’ payments for social
housing is necessary to reduce rent arrears and homelessness, and to increase
the monies available to the government that could be used for the construction
of new social housing:
There should be a compulsory deduction of rent for those
people who receive Centrelink payments. We could then reduce if not eradicate
the need to do any evictions, which cause massive social upheaval... Across
Australia there is $30 million in rent arrears in social housing, so the first
issue is we could build another 1,000 social houses a year if we didn’t have
that arrears in rent. Secondly, it also means families who end up being evicted
may well end up being homeless and that’s just a horrible scenario, so if we
can avoid that by getting a compulsory payment of rent that’s a good outcome.[24]
While the Commonwealth has in place voluntary mechanisms
through which social housing tenants may pay their rent, Mr Hazzard argues that
these schemes are not working:
In NSW, 80 per cent of evicted tenants in 2013–14 had
previously participated in a voluntary scheme, but had then withdrawn and
fallen into significant rent arrears... If we can head that off by simply saying,
alright we recognise that’s an issue, deduct the rent first, I think that’s a
positive social outcome.[25]
According to another source, all of the jurisdictions with
the exception of Victoria and the ACT support, in-principle, the introduction
of an automatic rent deduction scheme.[26]
In the case of the ACT, ACT Women and Housing Minister, Yvette Berry is
reported as having stated that the ACT Government does not support the scheme
on the grounds that it is likely to be incompatible with ACT human rights laws.[27]
It was reported that as at 7 August 2017, all of the
states and territories other than Victoria, the ACT and Tasmania had signed up
to the ARDS.[28]
Based on submissions to the Senate Community Affairs
Legislation Committee inquiry on the Bill, Australia’s welfare sector is
strongly opposed to the proposed ARDS and the measures contained in schedules
one and two.
Most welfare organisations have recommended that the
proposed scheme be rejected in its entirety. The details of the sector’s
problems with the Bill are considered in the ‘Key issues and provisions’
section below, but the main concerns may be broadly summarised as follows:
- given
the high rates of rent collection for social housing the proposed ARDS is
disproportionate to the problem of social housing rental arrears and debt
- the
proposed ARDS amounts to a further extension of income management which erodes the
inalienability of social security entitlements
- the
proposed ARDS undermines peoples’ dignity and autonomy and their ability to
manage their own finances and
- the
proposed ARDS is lacking in procedural fairness.
Financial
implications
The Explanatory
Memorandum states that the financial impact of the ARDS is not for
publication.[29]
This is undoubtedly because, as is noted in the 2016–17 Budget papers, ‘the
arrangement is subject to negotiation with the States and Territories’.[30]
The amendments to the NRAS contained in Schedule 3 will
not have any financial impact.[31]
Statement of Compatibility with Human Rights
As required under Part 3 of the Human Rights
(Parliamentary Scrutiny) Act 2011 (Cth), the Government has assessed the
Bill’s compatibility with the human rights and freedoms recognised or declared
in the international instruments listed in section 3 of that Act. The
Government considers that the Bill is compatible.[32]
Parliamentary
Joint Committee on Human Rights
The Parliamentary Joint Committee on Human Rights (Human
Rights Committee) has released its comments on the Bill and the Statement of Compatibility.[33]
The Human Rights Committee raised a number of questions
regarding the compatibility of the proposed ARDS with the rights to social
security, an adequate standard of living, privacy, protection of the family,
and equality and non-discrimination. Among other things, the Committee noted
that ARDS appears to have a disproportionate negative impact on women, persons
with a disability and Indigenous people, calling into question the
compatibility of the scheme with the right to equality and non-discrimination.
The Committee argued that a number of questions have not
been addressed in the Statement of Compatibility and has, accordingly, sought
the Minister’s advice on these matters.
Key issues
and provisions
Automatic
Rent Deduction Scheme
Given that the amendments to the Social Security
(Administration) Act in Schedule 1 of the Bill are essentially the same
as the amendments to the A New Tax System
(Family Assistance)(Administration) Act contained in Schedule 2, this
section of the Bills Digest deals only with the amendments in Schedule 1 of the
Bill. The comments made can be read as applying equally to the amendments made
to the A New Tax
System (Family Assistance)(Administration) Act by Schedule 2.
Income management
In principle, income support payments made under the Social Security Act
and the A New
Tax System (Family Assistance) Act 1999 are inalienable. This means
that, so long as a person is eligible for a payment, that payment must be made
to them and may not be withheld or paid to another person.[34]
In recent years, exceptions have increasingly been made to this rule.
In 2007, the Howard Government introduced the Northern
Territory Emergency Response (NTER) following claims of widespread child sexual
abuse and neglect in Northern Territory Indigenous communities.[35]
A scheme of income management was introduced as a part of the intervention,
under which the Government quarantines a specified amount of a person’s welfare
payments for the priority needs of that person, their partner and their
children. Priority needs include food, housing, clothing, education and health
care.[36]
Payments quarantined under income management may not be spent on alcohol,
tobacco, pornography or gambling.[37]
In 2009, the Rudd-Gillard Government replaced the income
management scheme for prescribed Northern Territory Indigenous communities with
a broader scheme targeted at ‘vulnerable regions’ and ‘individuals at risk’.[38]
More recently, the Government has introduced a cashless debit card in Ceduna
and the East Kimberley as a means to restrict income support recipients’ access
to cash, alcohol and gambling services.[39]
Subsection 60(1) of the Social Security (Administration)
Act puts beyond doubt that a social security payment is absolutely
inalienable, whether by way of, or in consequence of, sale, assignment, charge,
execution, bankruptcy or otherwise. Subsection 60(2) of the Act provides
exceptions to this general rule. Item 1 of Schedule 1 to the Bill
amends subsection 60(2) of the Social Security (Administration)
Act with the effect that the inalienability of social security payments
is subject to the additional exception in new Part 3E.[40]
That is, it provides for automatic deductions of rent and other housing costs
to be made from the income support payments of social housing tenants.
Where income support recipients are subject to the income
management regime under Part 3B of the Act, part of their payment is quarantined
in order to meet their priority needs. The part of the payment
that is subject to income management is that which is left over after all compulsory
deductions are made (including Centrelink overpayment recovery amounts, child
support liabilities and tax deductions)—this is the net amount.[41]
Items 2 and 3 of Schedule 1 amend the definition of net
amount to include as deductions the automatic deductions of rent or
other household payments from income support and family tax benefit payments provided
for under proposed sections 124QG of the Social Security (Administration)
Act (at item 8 of Schedule 1) and 67E of the A New Tax System
(Family Assistance)(Administration) Act (at item 5 of Schedule
2).
Cashless welfare card trial participants are to be treated
differently under the Bill. Item 7 of Schedule 1 of the Bill
amends section 124PM of the Social Security
(Administration) Act to remove the ability of a cashless welfare card trial
participant to use the unrestricted portion of their payment at their
discretion. This allows for deductions (including automatic rent deductions) to
be made from the unrestricted portion of the person’s payment, if necessary. In
theory, at least, this means that a cashless welfare trial participant’s entire
payment could end up being restricted. In its submission to the Senate
Community Affairs Legislation Committee inquiry into the Bill, the National
Social Security Rights Network has stated:
We are very concerned with this amendment. The unrestricted
portion of a Cashless Debit Card holder’s social security payment is the only
portion able to be accessed in cash form. For most Cashless Debit Card holders,
this unrestricted portion equals 20% of their social security benefit. In the
case of a single Newstart Allowance recipient, this is approximately $50 per
week. The proposed amendment indicates that some people, forced to use the
Cashless Debit Card, will have even less access to money following any
automatic deduction.[42]
While no limits have been placed on the discretionary
amount paid to an income support recipient who is subject to income management,
this amount will be smaller if they are subject to automatic rent deductions.
As noted above, the Senate Community Affairs Legislation
Committee has recommended that the Government should consider clarifying how
the ARDS would interact with other forms of income management and Commonwealth
deductions.
Income
management as a form of paternalism
Compulsory income management, such as the proposed ARDS
allows for, is highly controversial. This is largely because it is a
paternalist form of policy.
In relation to public policy, paternalism may be described
as the interference of a government or state with a person without their
consent and defended or motivated by a claim the person interfered with will be
better off or protected from harm. Paternalist policies seek to advance
people’s (perceived) interests and welfare at some cost to their liberty and
freedom of action.[43]
As such, paternalist policies appear to offend a fundamental tenet of liberal
societies; that is, that the individual is best placed to know what is in his
or her best interests.[44]
The idea that individuals should generally be treated as
the best judges of their own welfare is premised on two main grounds. The first
is that because the individual best knows his or her own interests and how to
achieve them, the ideal way to maximise individual satisfaction is to not
interfere with how people’s choices are made. The second ground insists that
allowing people the freedom to exercise choice is not only the best way to
maximise utility, but it also helps people to cultivate and exercise moral
autonomy. A further, related argument against state paternalism is that there
is no guarantee that it will improve people’s welfare and, indeed, it may make
it worse.[45]
While paternalist policies are controversial they are ubiquitous.
This suggests that the main issue is not whether paternalism itself is
justifiable, but rather the particular conditions under which specific
paternalist policies may be said to be justifiable.[46]
For an analysis of the conditions under which specific paternalist policies
might be said to be justifiable, see this Parliamentary Library research paper
titled Paternalism
in Social Policy–when is it justifiable?.[47]
Most welfare organisations are opposed in principle to any
policies or initiatives that compulsorily withhold income support recipients’
payments or a part of their payments. They argue that such policies and schemes
not only offend against the dignity of income support recipients, but are also
self-defeating in that they take away these people’s autonomy and ability to
manage their own affairs.[48]
As John Falzon stated in the St Vincent de Paul submission
on the Rudd-Gillard Government’s proposed HPDS:
Autonomy and liberty are core elements of participation in a
liberal democracy. We believe that forcibly reducing people’s autonomy, by
restricting how they spend their income, will only decrease self‑determination
and resilience, and increase social exclusion. Compulsory quarantining of
income is vastly different to voluntary repayment schemes, such as the Rent
Deduction Scheme, or Centrepay, which support individual decision-making and
empowerment.[49]
Following similar lines, the Equality Rights Alliance goes
on to emphasise that reducing people’s ability to manage their own finances can
have negative practical consequences:
We are concerned that the Social Services Legislation
Amendment (Housing Affordability) Bill is a departure from the fundamental
inalienability of social security incomes. The proposal to allow lessors of
social housing to compulsorily deduct payments of rent and certain other costs
from tenant’s income support payments infringe individual’s capacity to direct
and manage their own finances. Upholding the rights of all tenants across all
tenures to access and manage their own finances is fundamental to people’s
dignity and autonomy. In addition there are very real and practical implications
of third parties diverting people’s incomes, particularly where unexpected and
emergency costs arise. One such example pertinent for women is the need to have
control over finances to create and execute a plan to leave a violent
relationship.[50]
A number of welfare organisations have argued that, based
on their experience in working with tenants, the automatic deduction of rent
could leave these people unable to respond to unforeseen life circumstances and
going without food, medicine and other essentials:
The importance of the ability of tenants living in social
housing to make decisions about how they manage their income can’t be
underestimated. Most social housing tenants are reliant on Government payments
and for many the daily reality of managing a household budget is a precarious
juggling act. The income they receive is often a subsistence-level income,
barely enough to cover the cost of essentials such as food, housing, utilities,
daily transport costs, education and health costs. And when unexpected costs
arise, low income households are often forced to make a choice between going
without or going into debt. Social housing tenants have told us that at these
times, they need the ability to control their finances to pay what needs to be
paid first depending on the needs of their family on that particular day or
week... To remove the ability of tenants to manage their cash-flow, to enable
them to respond to the needs of their household and family, will only impose
more financial hardship for many social housing tenants who are already very
vulnerable.[51]
The Australian Council of Social Service (ACOSS) has
argued that removing tenants’ ability to control their finances could,
ironically, end up placing them in debt.[52]
While they do not generally support income management and
the automatic deduction of rent, some of Australia’s welfare organisations
concede that such interventions may be acceptable; however, this is only when
there is a real risk of eviction and homelessness, and, for some, when a range
of other voluntary measures have been exhausted. As such, they accept that
paternalist policies may be justifiable where they are specifically targeted at
those people whose welfare is seriously threatened.
Hence, in its submission to the inquiry, the Equality
Rights Alliance states:
Compulsory automatic rent deductions should be viewed as an
available tool in situations where it is deemed appropriate in light of the
decision-making capacity of a tenant and the risk of eviction and homelessness.
Such a process would require an independent and expert decision-making
mechanism. A suite of responses, tailored and responsive to the diversity of
circumstances is required to meet the overriding objective of reducing
evictions into homelessness. Where it’s deemed necessary and appropriate,
compulsory rent deduction is one tool which should be applied on a case by case
basis, reflecting the scale of the problem and in balance with other responses.[53]
Similarly, ACOSS maintains that:
A fairer alternative proposal would be to restrict automatic
rent deductions to tenants who are at immediate risk of eviction because of
arrears as a measure of last resort. This decision would only be made by a
state tenancy tribunal.[54]
The above argument is effectively one in favour of what is
referred to as pure paternalism—that is, an intervention that is specifically
directed, with the group being protected (tenants at immediate risk of being
evicted due to rental arrears) being the group that is being interfered with
(by having deductions automatically made from their payments). Pure paternalism
may be contrasted with impure paternalism, in which the group of people being interfered
with is larger than the group being protected.[55]
Under the Rudd-Gillard Government’s proposed HPDS compulsory
deductions would only have been made from the income support payments of public
housing tenants with current rent owing and not tenants who were subject to
income management. By contrast, the ARDS is to apply to all social housing
tenants in receipt of income support, including social housing tenants subject
to income management, where the social housing lessor requests that a deduction
be made.
Voluntary
rental deduction arrangements
As noted above, social housing tenants in receipt of
income support currently have access to a voluntary Rent Deduction Scheme.[56]
Tenants in other rental arrangements, such as private rental, who receive
Centrelink payments, can choose to use the Department of Human Services
Centrepay system to automatically deduct their rent from their payments.[57]
Recipient-requested deductions are deducted from payments after any compulsory
deductions (debts to the Commonwealth) have been made.[58]
Australia’s welfare sector is strongly supportive of voluntary rental deduction
schemes, which are held to support individual decision-making and empowerment.
The Government has argued in support of the proposed ARDS
that in 2013–14 some 80,000 households in the social housing system stopped
their voluntary deductions at some stage during the year,[59]
and, in the same year, more than 8,900 social housing tenants, including
families with children, were in serious rental arrears, with more than 2,300
people evicted by local housing authorities due to rent defaults.[60]
The Government suggests that this indicates the need for compulsory, rather
than simply voluntary, rental deduction arrangements to ensure that social
tenants do not end up homeless.
However, in their submissions to the inquiry a majority of
welfare organisations have insisted that, given high national rent collection
rates for social housing and the relatively low number of evictions due to
rental arrears, the proposed response is unnecessary and unjustified. Over the
five years from 2011–12 to 2015–16 national rent collection rates have averaged
99.4 per cent for public housing, 99.2 per cent for community housing and 99.2
per cent for state owned and managed Indigenous housing.[61]
As at 30 June 2016 there were 394,289 households in all social housing programs
and 845,408 tenants.[62]
Based on these figures, and the number of evictions quoted by the Government
above, less than three in every 1,000 social housing tenants are evicted in any
one year.
The Equality Rights Alliance has suggested that in view of
the relatively small scale of the problem, what is required is ‘a targeted
solution responsive to the complex, underlying factors that contribute to
rental arrears and vulnerability to eviction’.[63]
Following similar lines, the Salvation Army has argued that it ‘supports
voluntary, ‘opt-in’ streams of income management such as Centrepay,
particularly where these measures are supported by case management (intensive
counselling and support including financial counselling and supported by
locally coordinated services)’.[64]
Objects of
the ARDS
Item 8 of Schedule 1 to the Bill is a key amendment.
It inserts proposed Part 3E—Automatic deductions of rent or other
household payments into the Social Security
(Administration) Act. The stated object of this Part is to provide for
automatic deductions from certain welfare payments (divertible welfare
payments[65])
for rent or household utilities, or loss or damage to property arising as a
result of occupancy of premises, so as to:
a) reduce
homelessness; and
b) ensure
financial effectiveness and sustainability of the social housing system; and
c) support greater investment in social housing.
Elaborating on the purpose of the ARDS, Minister for Human
Services, Alan Tudge, has stated:
...The ARDS will drive greater efficiencies in Australia’s
social housing system by generating a steady income stream that may be
reinvested in social housing stock. The state and territory social housing
system is losing more than $30 million a year from unpaid rent and related
administrative costs. This not only results in people and families losing a
roof over their head, but also discourages private investment in social
housing.[66]
The proposed scheme could indeed encourage increased
private investment in social housing by boosting would-be investors’ confidence
in realising a return. However, there is no guarantee that state and territory
governments would choose to invest the increased rental revenue in social
housing rather than allocating it towards some other purpose. State and
territory governments could be urged to do so through the Australian Government
making it a condition of Commonwealth funding under the new National Housing
and Homelessness Agreement (NHHA), which is being negotiated with the states
and territories.[67]
In the context of consultations on the Exposure Draft of
the Bill that would have enabled the Rudd-Gillard Government’s proposed HPDS,
stakeholders were critical of the focus on the recovery of public housing
lessor debts at the expense of a focus on preventing evictions and reducing
homelessness.[68]
Who may
request a deduction under the ARDS?
Proposed section 124QC of the Social Security
(Administration) Act specifies who is a social housing lessor
for the purposes of the ARDS. Essentially, this includes any state or territory
housing authority or body authorised to provide social housing in a state or
territory that has a written agreement with the Department of Human Services relating
to the authority or body’s ability to request ARDS deductions.
Under the Rudd-Gillard Government’s proposed HPDS the
ability to have deductions made was confined to public housing lessors (that
is, to state or territory housing authorities). Under the ARDS coverage is
expanded to include lessors of community housing, state owned and managed
Indigenous housing, mainstream and Indigenous community housing, and housing
provided under the Crisis Accommodation Program.
Arguably, this expansion to other forms of social housing
makes sense, given that it is government policy to transfer a substantial
proportion of public housing to community housing providers.[69]
In keeping with this policy approach, community housing has grown as a
percentage of the overall social housing stock over the past decade or so. From
2007 to 2016 the number of community housing dwellings in Australia more than
doubled, growing from 34,672 to 80,225. At the same time, public housing fell
from 339,771 to 320,041 dwellings.[70]
Under proposed subsection 124QC(2) the Minister
may, by written instrument, determine that a specified authority or body may
not be a social housing lessor. However, it is not clear on what basis this
decision is to be made. Under the Rudd-Gillard Government’s proposed HPDS the
default position was that the Minister could specify, by legislative
instrument, that a state or territory, authority of the state or territory, or
a person was a public housing lessor. Before doing so the Minister was to have ensured
that the public housing lessor had in place appropriate processes for reviewing
decisions made with regard to rent owed and for dealing with lessees in matters
relating to their leases.[71]
Because the ARDS is to apply to all social housing tenants—see below—such a
requirement is not necessary.
When may a
social housing lessor request a deduction?
Proposed section 124QF specifies various conditions
under which a social housing lessor may request that a deduction be made. These
include if:
- the
tenant has an ongoing or outstanding obligation to pay an amount for rent or
household utilities
- the
tenant is to pay to the lessor an amount for loss of or damage to property as a
result of their occupancy of premises so as to comply with an order of a court,
tribunal or other body and there is either no appeal or the appeal is
unsuccessful or
- the
tenant agrees in writing to pay the lessor an amount for loss of or damage to
property as a result of their occupancy.
However, the catch-all condition that the tenant has an
ongoing obligation to pay an amount for rent, household utilities, or both,
effectively means that all social housing tenants will be subject to the ARDS,
so long as their lessor has a written agreement with the Department of Human
Services and requests that deductions be made.
Welfare organisations have been highly critical of the
all-encompassing nature of the ARDS. For example, the National Association of
Tenants’ Organisations has argued that the effect of the ‘ongoing or outstanding
obligation’ criteria
would be to capture any historical amounts for rent or
household utilities owed by the tenant, even if the amounts are arbitrary or
are no longer being pursued by the lessor. Provided the amount is ‘outstanding’,
it would theoretically be recoverable under the ARDS, regardless of when it
accrued.[72]
As the National Association of Tenants’ Organisations sees
it, the scheme should be limited to cases in which payments have been
outstanding for a defined period of time, and should not apply retrospectively.[73]
This would ensure that tenants are given a grace period in which to satisfy an
outstanding obligation, rather than penalising them for incurring nominal or
isolated debts that they are capable of paying in a following rental payment
period.
A number of welfare organisations have criticised the
extension of payment obligations beyond rental arrears to include things such
as household utilities, arguing that this goes too far in terms of a tenancy
agreement. For example, the National Association of Tenants’ Organisations has
stated that:
By allowing such a broad range of payments to be recovered
under the ARDS, the Bill goes beyond what is necessary to reduce the
accumulation of rental arrears, and may place tenants under increased financial
strain due to their inability to assert their rights against lessors or to
apply their welfare income towards more pressing financial liabilities.[74]
The Association goes on to insist that ‘deductions pursuant
to the ARDS should only be permitted in respect of outstanding rental payments
where the payment default amounts to a serious breach of the terms of the
tenancy agreement and causes significant detriment to the lessor’.[75]
Under the Rudd-Gillard Government’s proposed HPDS the public
housing lessor was required to have undertaken reasonable steps to recover
debts before making a request under the scheme.[76]
These steps included: providing the tenant with written notice demanding
payment of some or all of the amount within a specified period that was
reasonable, and that period having passed without the demand being met; taking
reasonable action to inform the person of financial counselling and other
services relating to the lease available to the person; informing the person of
their right to review of the decisions made in relation to amounts due; taking
reasonable action to inform the person of the intention to request that a
deduction be made from their payment because of the debt; and giving the person
a reasonable opportunity to make representations about the proposal to have a
deduction made from their payment.[77]
There is no similar requirement under the proposed ARDS. As
a number of welfare organisations see it this amounts to a lack of procedural
fairness. The National Association of Tenants’ Organisations has argued that,
in addition to the above requirements, the Bill should compel the lessor to
provide a written demand that payment be made within a
reasonable period of the date on which the obligation became overdue, and
afford the tenant the opportunity to remedy the payment default, before having
recourse to the ARDS.[78]
Content of
the request
Under proposed subsection 124QF(3) the social
housing lessor’s request must specify the amount to be deducted from the
tenant’s divertible welfare payment. The amount is not to be more than the
amount owed by the tenant for rent, household utilities, loss of or damage to property
as determined by an order of a court, tribunal or other relevant body, or agreed
to in writing by the tenant.
Under the Rudd-Gillard Government’s proposed HPDS housing
costs that could be deducted were limited to rent, rent arrears and household
utilities. Maintenance debt incurred as a result of property damage was not
included. This was in response to stakeholder concerns that these forms of debt
are often contentious and may unduly impact on domestic violence victims.[79]
Under the proposed ARDS amounts deducted for damage to
property are to be as determined by an order of a court, tribunal or relevant
body and in these instances it is to be assumed that the deductions will not
fall on domestic violence victims and other tenants who are not responsible for
damage caused. However, in the case of deductions made under proposed
subsection 124QF(1)(c)—that is, by written agreement of the tenant—victims of
domestic violence and innocent parties may end up paying for damage caused by
someone else. The NSW Federation of Housing Associations has recommended that
victims of domestic and family violence should be specifically excluded from
the requirement to repay damage to property.[80]
The National Social Security Rights Network has expressed
the concern that vulnerable tenants may feel obliged to sign written agreements
for compensation amounts that have not been proven or amounts in cases where
the cause of the damage has not been determined—‘there may be instances where a
fear of eviction causes a vulnerable tenant to agree to compensate’.[81]
Proposed subsection 124QF(4) allows the social
housing lessor to amend the request to specify a different amount to be
deducted from the divertible welfare payment. Under the Rudd-Gillard
Government’s proposed HPDS the lessor was able to change the deduction amount
in accordance with changes in rent and utility amounts, so long as the lessor
took reasonable action to inform the tenant of the amendment and gave them an
opportunity to make representations to the lessor about the proposed change.[82]
The proposed ARDS does not require that the lessor inform the tenant of such
changes, or require that they receive representations from the tenant. As such,
the tenant may only become aware that the deduction has been granted, and of the
size of the deduction, when the amount has already been withdrawn from their
income support payment.[83]
As noted above, the Senate Community Affairs Legislation
Committee has recommended that the Government consider the arguments for
including a provision in the ARDS guidelines that would provide for tenants to
be notified of the details of requests. It has also recommended that the
Government consider the merit of providing for tenants to request a review of
decisions made under the ARDS.[84]
Making the
deduction
Proposed section 124QG specifies the circumstances
under which a deduction may and may not be made from a social housing tenant’s
divertible welfare payment under the ARDS. Proposed section 124QH stipulates,
in general terms, the amount of a deduction, which must not exceed the amount
requested by the social housing lessor or the amount of the divertible welfare
payment that is left to the tenant after all other compulsory deductions have
been made. As such, there is no specified upper limit to the amount that may be
requested by the social housing lessor. This is of considerable concern to
welfare organisations for the reasons outlined in this representative comment
by the National Association of Tenants’ Organisations:
There is nothing on the face of the Bill that would prevent
the Secretary from ordering that a deduction be made which would exhaust the
entire residual amount of a tenant’s social security entitlement.
In circumstances where a tenant receives only one social
security payment, the deduction could constitute the entirety of a tenant’s
income. In that event, a tenant who is already experiencing financial hardship
would have one of two options: to go without other basic needs, such as food or
household items; or to secure a loan for these basic needs, which may give rise
to increased financial hardship (through the tenant’s inability to meet his or
her payment obligations under the loan agreement).
The SSA Act protects ‘priority needs’, which are defined to
include food, clothing, footwear, basic personal hygiene items and basic
household items. The Explanatory Memorandum to the Bill states that the ARDS
recognises that social welfare payments should be directed towards a person and
their family’s basic needs. However, by failing to cap the amount of deduction,
the Bill appears to elevate the need for housing above the other basic needs.[85]
Under the Rudd-Gillard Government’s proposed HPDS an
effective cap was set on the maximum deduction amount relative to the tenant’s
actual payment. This was 35 per cent of what the tenant’s payment would have
been apart from any reductions or deductions made under Commonwealth
legislation. The Minister would also have been able to specify components of
income support payments that could have been excluded from the calculation of
the 35 per cent cap. This would have allowed the amount the 35 per cent was
calculated against to be reduced, allowing the tenant to retain more of their
payment for living expenses.
Most of the submissions on the Exposure Draft of the
Social Security Legislation Amendment (Public Housing Tenants’ Support) Bill
2013 were highly critical of the level of the cap, arguing that it was set too
high and that this would leave public housing tenants with relatively few
resources to spend on their other, non-housing related living expenses. This,
it was argued, could result in the counterproductive situation of some
households being unable to meet their living expenses and less likely to
sustain their housing over the longer term.[86]
In riposte the Rudd-Gillard Government argued that the 35
per cent cap represented a balance between stakeholder opinions that the amount
was either too high and therefore could cause hardship in individual cases; or
too low to cover both rent and arrears, resulting in tenants falling deeper
into debt.[87]
It pointed out that, given that most public housing tenants were paying up to
25 per cent in rent already, the 35 per cent cap could not only cover their
rent but also contribute up to 10 per cent to paying off rental arrears.[88]
In their submissions to the inquiry on the current Bill,
welfare organisations have recommended that a cap be placed on the amount that
the Secretary may deduct from a tenant’s income support payment ‘to ensure that
a minimum residual amount is available to meet the tenant’s other needs’.[89]
The Salvation Army has suggested that the cap could be set at 30 per cent of
household income.[90]
There are a number of different definitions and indicators of housing stress.
However, most of these definitions have it that where households are spending
more than 30 per cent of their gross income on housing costs, they are in
housing stress.
The Senate Community Affairs Legislation Committee has
recommended that the Government consider whether there is merit in imposing a
cap on the maximum deduction that may be made under the ARDS.[91]
Proposed section 124QI sets out the notifications
that are required of social housing lessors. These required notifications do
not extend to tenants. There is no requirement that tenants be consulted or
informed about the content of requests—or, as noted above, amounts to be
deducted from their payments—either by the lessor or the Secretary. This is a
source of much concern for welfare organisations, who argue that the proposed
ARDS is lacking in procedural fairness.
The National Association of Tenants’ Organisations has
recommended that the Bill be amended to require that the Secretary notify a
tenant upon receiving a request from the lessor for deductions to be made under
the ARDS. The Secretary should then be required to notify the tenant of his or
her decision whether to grant or reject the request. If the request is granted,
the Secretary should be required to advise the tenant in advance of: the amount
to be deducted; the period during which deductions are to be made and the
amount to be deducted during each payment period; and any rights of review the
tenant has in respect of the Secretary’s decision.[92]
If the procedural fairness of the ARDS is not increased along these lines, then
the National Association of Tenants’ Organisations and other welfare groups
have argued that tenants are likely to suffer financial instability and
hardship.
As noted above, the Senate Community Affairs Legislation
Committee has recommended that the Government consider the arguments for
including in the ARDS guidelines a requirement that tenants be provided with
notifications as proposed by the National Association of Tenants’
Organisations.[93]
Proposed Division 3 in new Part 3E sets out
how the deductions made by the Secretary under the ARDS are to be treated. Proposed
Division 4 provides for an amount paid in excess of the deduction to the
public housing lessor to be repaid to the Commonwealth. It also spells out the
way in which the excess amount is to be paid to the tenant. Proposed
Division 5 stipulates that the Secretary may, on behalf of the
Commonwealth, charge a social housing lessor fees for services provided under
the ARDS. In its submission to the inquiry into the Bill the Community Housing
Council of SA has expressed some concerns regarding the lack of detail on fees:
There is no information in the Bill about the scale of fees
that would apply to [community housing providers]; it would be helpful if an
indication of the fees was provided. All costs passed onto [community housing
providers] will place further financial pressure upon them and limit their
ability to support tenants.[94]
Schedule
3—Amendments to the National Rental Affordability Scheme Act
Judging by submissions to the inquiry into the Bill from
housing organisations, the national rental affordability scheme amendments in
Schedule 3 are generally supported. These organisations have, however,
expressed some reservations with regard to proposed new subsection 7(5).
This new subsection:
clarifies that a condition provided for by the [National
Rental Affordability Scheme] may be imposed on an allocation after it is made.
A condition prescribed by the Scheme includes new or varied conditions of
allocation. New conditions of allocation may be imposed to deal with emerging
issues and circumstances.
The ability to implement new and varied conditions of
allocations are important to further the objects of the Scheme, and to protect
eligible tenants and ensure the safety and viability of dwellings. For example,
new conditions of allocation may be imposed to deal with certain safety issues,
such as a requirement to use non-flammable materials, or replace existing
dangerous materials.[95]
The NSW Federation of Housing Associations has argued that
this amendment:
Would give [the Department of Social Services] wide ranging
power to significantly change the conditions of the [National Rental
Affordability Scheme] allocation and to enact those changes at any time. There
are no guidelines or parameters on what types of conditions might be imposed.
Nor is there any indication that Approved Participants and investors would be
consulted or their consent required before conditions would be altered.
Compliance with the proposed new conditions of allocation could result in
unanticipated costs for providers and possibly a partial loss of the incentive
if it proves too difficult to comply with in a timely manner.[96]
The Federation has recommended that the provision be
amended:
To limit the scope of [Department of Social Services]
authority to varying conditions in order to mitigate risk and it should be made
clearer that this power relates to conditions being imposed to deal with emerging
issues and circumstances.
The Federation recommends that some parameters be included in
the Legislation that indicate when it is appropriate to significantly vary the
conditions of the allocation, and that there be established procedures for
negotiation on any variations with Approved Participants and investors.[97]
Concluding
comments
The proposed ARDS that the Bill would enable is strongly
opposed by key organisations in Australia’s welfare sector. These
organisations’ concerns stem in large part from the sector’s general aversion
to paternalist policies, and especially impure paternalist policies.
The sector’s argument has generally been that most income
support recipients are quite capable of managing their limited finances without
outside help and intervention. Where income management is imposed on a
one-size-fits-all basis, it is argued that this can have unintended negative
consequences for these people, including undermining their responsibility for
managing their finances and their ability to do so. In short, it is argued that
the ARDS that the Bill would enable is punitive and likely to do more damage
than good.
Were the Government to make changes to the Bill along the
lines suggested by the Senate Community Affairs Legislation Committee and many
submitters to the inquiry, then this could improve both the acceptability of
the ARDS and its prospects of success.
[1]. Australian
Government, Budget
measures: budget paper no. 2: 2016–17, p. 140.
[2]. Department
of Human Services (DHS), ‘Compulsory
Rent Deduction Scheme—establishment—budget 2016–17’, DHS website.
[3]. For
further details see M Thomas, Social
Security Legislation Amendment (Public Housing Tenants’ Support) Bill 2013,
Bills digest, 139, 2012–13, Parliamentary Library, Canberra, 13 June 2013.
[4]. Australian
Government, The
road home: a national approach to reducing homelessness, Commonwealth of
Australia, Canberra, 2008, p. 36.
[5]. Council
of Australian Governments (COAG), National
affordable housing agreement, COAG, p. 7.
[6]. See
M Thomas, Social
Security Legislation Amendment (Public Housing Tenants’ Support) Bill 2013,
op. cit., pp. 4–5.
[7]. Ibid.,
for further information.
[8]. Parliament
of Australia, ‘Social
Security Legislation Amendment (Public Housing Tenants’ Support) Bill 2013
homepage’, Australian Parliament website.
[9]. Australian
National Audit Office (ANAO), Administration
of the National Rental Affordability Scheme, Audit report, 8, 2015–16,
ANAO, Barton, ACT, 2015, p. 12.
[10]. Australian
National Audit Office (ANAO), National
Rental Affordability Scheme—Administration of allocations and incentives,
Audit report, 23, 2016–17, ANAO, Barton, ACT, 2016, p. 8.
[11]. Department
of Social Services (DSS), ‘Improving
the National Rental Affordability Scheme’, DSS website, 24 November 2016.
[12]. C
Porter, ‘Second
reading speech: Social Security Legislation Amendment (Housing Affordability)
Bill 2017’, House of Representatives, Debates, 14 September 2017, p.
10420.
[13]. Ibid.
[14]. The
terms of reference, submissions and the final report are available on the inquiry
homepage.
[15]. Senate
Community Affairs Legislation Committee, Report,
Inquiry into the Social Security Legislation Amendment (Housing
Affordability) Bill 2017 [provisions], The Senate, Canberra, 2017, p. 19.
[16]. Ibid.
[17]. Ibid.,
pp. 19–20.
[18]. Ibid.,
p. 27.
[19]. Senate
Standing Committee for the Scrutiny of Bills, Scrutiny
digest, 12, 2017,
The Senate, 18 October 2017, p. 48.
[20]. Senate
Community Affairs Legislation Committee, Report,
op. cit., p. 30.
[21]. Ibid.,
p. 33.
[22]. Ibid.,
p. 39.
[23]. Ibid.
[24]. L
McNally, ‘Social
housing rent deducted from Centrelink pay will prevent homelessness, NSW says’,
ABC News, 31 March 2016.
[25]. Ibid.
[26]. A
Wood, ‘Support
for scheme to pay rent from welfare’, The Daily Telegraph, 1 April
2016, p. 10.
[27]. T
McIlroy, ‘Funding
progress for homelessness’, The Canberra Times, 2 April 2016, p. 4.
[28]. A
Tudge (Minister for Human Services), Interview
with Chris Smith, 2GB Sydney, transcript, 7 August 2017, p. 3.
[29]. Explanatory
Memorandum, Social Services Legislation Amendment (Housing Affordability)
Bill 2017, p. 3.
[30]. Australian
Government, Budget
measures: budget paper no. 2: 2016–17, p. 140.
[31]. Explanatory
Memorandum, Social Services Legislation Amendment (Housing Affordability)
Bill 2017, p. 3.
[32]. The
Statement of Compatibility with Human Rights can be found at page 22 of the Explanatory
Memorandum to the Bill.
[33]. Parliamentary
Joint Committee on Human Rights, Twelfth
report of the 45th Parliament, 28 November 2017, pp. 43–52.
[34]. Section
60 of the Social Security (Administration) Act 1999 states that social
security payments ‘are absolutely inalienable’. This means that, subject to
express legislative exemptions, ‘they cannot be sold, transferred to a third
party, legally charged or be subject to bankruptcy proceedings. This gives
legal force to the intention that payments are designed to provide income
support. A recipient's right to receive a payment or benefit CANNOT be
transferred to another person either by a voluntary act or by the operation of
the law’. See Department of Social Services (DSS), ‘8.4.3 protection
of payment’, Guide to Social Security Law, 5 March 2007. See also
section 66 of the A
New Tax System (Family Assistance)(Administration) Act 1999.
[35]. K
Magarey et al, Northern
Territory National Emergency Response Bill 2007, Bills Digest, 28,
2007–08, Parliamentary Library, Canberra, 2007.
[36]. Subsection
123TH(1) of the Social Security (Administration) Act contains a
complete list of priority needs. ‘Household utilities’ are
currently included in this list at paragraph 123TH(1)(h), which provides that
this term includes electricity, gas, water, sewerage, garbage collection and
fixed-line telephone. At present, the term ‘household utilities’ is only used
in the part of the Social Security (Administration) Act that deals with
the income management regime (Part 3B). However, as the term is also used in
proposed Part 3E of the Act (at Schedule 1 to the Bill), it is to be defined in
the Dictionary at Schedule 1 to the Social Security (Administration) Act.
Accordingly, item 4 of Schedule 1 to the Bill repeals and
replaces paragraph 123TH(1)(h) so that it refers simply to ‘household
utilities’, with no included examples and item 15 of Schedule 1 to the
Bill inserts a definition of ‘household utilities’ into subclause
1(1) of Schedule 1 to the Social Security (Administration) Act. This
definition reproduces the definition at current paragraph 123TH(1)(h). No
substantive change is made to section 123TH.
[37]. For
an overview of income management in Australia, up to 2012, see L Buckmaster, C
Ey and M Klapdor, Income
management: an overview, Background note, Parliamentary Library,
Canberra, 21 June 2012.
[38]. Ibid.
[39]. DSS,
‘Cashless
debit card’, DSS website, last updated 14 December 2017.
[40]. New
Part 3E is inserted by item 8 of Schedule 1 to the Bill and discussed
below at pages 11 to 16.
[41]. See
Department of Social Services (DSS), ‘11.1.3.30 income
management calculation’, Guide to Social Security Law, 1 July 2015.
[42]. National
Social Security Rights Network, Submission
to Senate Community Affairs Legislation Committee, Inquiry into the Social
Services Legislation Amendment (Housing Affordability) Bill 2017, 10
November 2017, p. 5.
[43]. M
Thomas and L Buckmaster, Paternalism
in social policy—when is it justifiable?, Research paper, 8, 2010–11,
Parliamentary Library, Canberra, 2010, p. 3.
[44]. Ibid.,
p. 7.
[45]. Ibid.
[46]. Ibid.,
p. 1.
[47]. Thomas
and Buckmaster, Paternalism
in social policy—when is it justifiable?, op. cit.
[48]. For
a brief summary of the main arguments for and against income management, see L
Buckmaster et al, Social
Security and Other Legislation Amendment (Welfare Reform and Reinstatement of
Racial Discrimination Act) Bill 2009, Bills digest, 94, 2009–10,
Parliamentary Library, Canberra, 2010, pp. 20–34.
[49]. St
Vincent de Paul Society, Submission
on the Housing Payment Deduction Scheme, p. 3.
[50]. Equality
Rights Alliance, Submission
to Senate Community Affairs Legislation Committee, Inquiry into the Social
Services Legislation Amendment (Housing Affordability) Bill 2017, 14
November 2017, p. 1.
[51]. Shelter
NSW, Submission
to Senate Community Affairs Legislation Committee, Inquiry into the Social
Services Legislation Amendment (Housing Affordability) Bill 2017, 10
November 2017, p. 2.
[52]. Australian
Council of Social Service (ACOSS), Submission
to Senate Community Affairs Legislation Committee, Inquiry into the Social
Services Legislation Amendment (Housing Affordability) Bill 2017, 10
November 2017, p. 1.
[53]. Equality
Rights Alliance, Submission
to Senate Community Affairs Legislation Committee, op. cit., p. 3.
[54]. ACOSS,
Submission
to Senate Community Affairs Legislation Committee, op. cit., p. 2.
[55]. See
Thomas and Buckmaster, Paternalism
in social policy—when is it justifiable?, op. cit., p. 5.
[56]. DHS,
‘Rent
Deduction Scheme’, DHS website, last updated 21 December 2017.
[57]. DHS,
‘Goods
and services for Centrepay deductions’, DHS website, last updated 27 August
2017.
[58]. DSS,
‘8.4.1.40
deductions from payments’, Guide to Social Security Law, 8 May 2017.
[59]. A
Tudge, Automatic
Rent Deduction Scheme benefits public housing tenants and encourages investment,
media release, 7 August 2017.
[60]. C
Porter (Minister for Social Services) and A Tudge (Minister for Human
Services), Social
housing rent reform to support vulnerable families, joint media release,
14 September 2017; C Porter, ‘Second
reading speech: Social Security Legislation Amendment (Housing Affordability)
Bill 2017, op. cit., p. 2.
[61]. Steering
Committee for the Review of Government Service Provision, Report
on Government Services 2017: volume G: housing and homelessness,
Productivity Commission, Canberra, 2017. See Tables 18A.48–51.
[62]. Australian
Institute of Health and Welfare (AIHW), Housing
Assistance in Australia 2017: Supplementary tables: social housing tenants,
AIHW website, July 2017. Tenants.6: Number of tenants in social housing, by
state and territory, at 30 June 2016.
[63]. Equality
Rights Alliance, Submission
to Senate Community Affairs Legislation Committee, op. cit., p. 2.
[64]. The
Salvation Army, Submission
to Senate Community Affairs Legislation Committee, Inquiry into the Social
Services Legislation Amendment (Housing Affordability) Bill 2017, 9
November 2017, p. 2.
[65]. Divertible
welfare payments are defined under proposed section 124QB of the Social
Security (Administration) Act.
[66]. A
Tudge, Automatic
Rent Deduction Scheme benefits public housing tenants and encourages investment,
op. cit.
[67]. On
25 October 2017, the Government introduced to the Parliament the Treasury
Laws Amendment (National Housing and Homelessness Agreement) Bill 2017
which would, if passed, enable the replacement of the NAHA with the NHHA. The
NHHA would introduce primary, supplementary and designated housing agreements.
[68]. Thomas,
Social
Security Legislation Amendment (Public Housing Tenants’ Support) Bill 2013,
op. cit., pp. 9–10.
[69]. The
rationale behind this approach is that community housing tenants are eligible
for Commonwealth Rent Assistance (CRA) whereas public housing tenants are not,
and this enables community housing providers to charge higher rents without
reducing tenant net incomes. Where they have a sufficiently sized asset base,
community housing providers are able to use this to leverage financing and
further expand their housing stock. At the 2009 Housing Ministers Conference, a
target was set to increase community housing stock to make up 35 per cent of
the social housing sector by 2014. See H Pawson, C Martin, K Flanagan and R
Phillips, ‘Recent
housing transfer experience in Australia: implications for affordable housing
industry developments’, AHURI Final report, 273, Australian Housing and
Urban Research Institute, Melbourne, 2016, p. 2.
[70]. See
Steering Committee for the Review of Government Service Provision, Report
on Government Services 2017: volume G: housing and homelessness, Table
18A.3 Descriptive data—number of social housing dwellings, at 30 June, PC,
2016.
[71]. Item
9, Schedule 1 to the Social
Security Legislation Amendment (Public Housing Tenants’ Support) Bill 2013
would have inserted clause 3, proposed Schedule 6 into the Social Security
(Administration) Act.
[72]. National
Association of Tenants’ Organisations, Submission
to Senate Community Affairs Legislation Committee, Inquiry into the Social
Services Legislation Amendment (Housing Affordability) Bill 2017, 10
November 2017, p. 3.
[73]. Ibid.
[74]. Ibid.,
p. 3.
[75]. Ibid.
[76]. This
requirement was introduced in response to stakeholder comments on the Exposure
Draft of the Bill that would have enabled the Rudd-Gillard Government’s
proposed HPDS. See subclause 6(3) of proposed Schedule 6 of the Social Security
(Administration) Act at item 9 of Schedule 1 to the Social
Security Legislation Amendment (Public Housing Tenants’ Support) Bill 2013.
[77]. Subclause
6(4) of proposed Schedule 6 of the Social Security (Administration) Act at item
9 of Schedule 1 to the Social
Security Legislation Amendment (Public Housing Tenants’ Support) Bill 2013.
[78]. National
Association of Tenants’ Organisations, Submission
to Senate Community Affairs Legislation Committee, op. cit., p. 4.
[79]. Explanatory
Memorandum, Social Security Legislation Amendment (Public Housing Tenants’
Support) Bill 2013, p. 3.
[80]. NSW
Federation of Housing Associations, Submission
to Senate Community Affairs Legislation Committee, Inquiry into the Social
Services Legislation Amendment (Housing Affordability) Bill 2017, November
2017, p. 5.
[81]. National
Social Security Rights Network, Submission
to Senate Community Affairs Legislation Committee, op. cit., pp. 4–5.
[82]. Item
9, Schedule 1 to the Social
Security Legislation Amendment (Public Housing Tenants’ Support) Bill 2013
would have inserted subclause 5(4) of proposed Schedule 6 into the Social
Security (Administration) Act.
[83]. Glebe
HAPN, Submission
to Senate Community Affairs Legislation Committee, Inquiry into the Social
Services Legislation Amendment (Housing Affordability) Bill 2017, 10
November 2017.
[84]. Senate
Community Affairs Legislation Committee, Report,
op. cit., p. 20.
[85]. National
Association of Tenants’ Organisations, Submission
to Senate Community Affairs Legislation Committee, op. cit., p. 4.
[86]. See
Thomas, Social
Security Legislation Amendment (Public Housing Tenants’ Support) Bill 2013,
op. cit., pp. 13–14 and subclause 9(1) of proposed Schedule 6 of the Social Security
(Administration) Act at item 9 of Schedule 1 to the Social
Security Legislation Amendment (Public Housing Tenants’ Support) Bill 2013.
[87]. Ibid.,
p. 13.
[88]. Ibid.
[89]. National
Association of Tenants’ Organisations, Submission
to Senate Community Affairs Legislation Committee, op. cit., p. 5.
[90]. The
Salvation Army, Submission
to Senate Community Affairs Legislation Committee, op. cit., p. 3.
[91]. Senate
Community Affairs Legislation Committee, Report,
op. cit., p. 19.
[92]. National
Association of Tenants’ Organisations, Submission
to Senate Community Affairs Legislation Committee, op. cit., p. 5.
[93]. Senate
Community Affairs Legislation Committee, Report,
op. cit., p. 20.
[94]. Community
Housing Council of SA, Submission
to Senate Community Affairs Legislation Committee, Inquiry into the Social
Services Legislation Amendment (Housing Affordability) Bill 2017, 10
November 2017, p. 3..
[95]. Explanatory
Memorandum, Social Services Legislation Amendment (Housing Affordability)
Bill 2017, p. 20.
[96]. NSW
Federation of Housing Associations, Submission
to Senate Community Affairs Legislation Committee, op. cit., p. 10.
[97]. Ibid.
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