REPORT ON HOUSING ASSISTANCE
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CHAPTER 1 - INTRODUCTION
Terms of reference
1.1 This matter was referred to the Committee on 9 December 1996 for
inquiry and report by 30 September 1997. The terms of reference were subsequently
amended by the Senate on 13 February 1997. The reporting date was later
extended to 15 December 1997.
1.2 The complete terms of reference for the inquiry are:
(a) the effectiveness of existing forms of housing assistance in alleviating
housing-related poverty and ensuring Australians have access to affordable,
adequate and appropriately located secure housing;
(b) the equitable distribution of housing assistance in regard to:
(i) levels of assistance provided; and
(ii) relative housing outcomes from such assistance;
(c) the responsibilities of Commonwealth and State governments in the
delivery of housing assistance, with specific reference to:
(i) the efficiency, effectiveness and delivery of housing assistance;
(ii) appropriate processes for ensuring the accountability, transparency
and evaluation of housing assistance; and
(iii) an effective framework for determining housing need, setting national
goals and developing national strategies for housing assistance;
(d) the value, condition and management of current public housing assets;
(e) consumer rights and responsibilities, including legislative protection
and the level of advocacy and support services required to meet the needs
of low income households;
(f) the value and impact of housing assistance given to the private rental
market, with specific reference to:
(i) the capacity of the private rental market to meet the needs of low
income and disadvantaged households;
(ii) the price and supply impact of changes to rent assistance;
(iii) the impact on market rents of a reduction in public housing stock;
and
(iv) options for, and related costs of, attracting private investment
to the low cost end of the private rental market;
(g) the appropriate mix of income support and supply assistance measures
to ensure adequate affordability and supply of housing in the medium and
long term for low income households;
(h) the appropriate level and mix of investment necessary to ensure:
(i) an adequate supply of private rental housing; and
(ii) an adequate supply of public housing which meets the needs of low
income households;
(i) the appropriate level of, and arrangements for, provision of income
support to ensure affordability of appropriate housing for low income
households.
Conduct of the inquiry
1.3 The inquiry was advertised in The Weekend Australian on 22 February
1997, and through the Internet. Submissions were also invited from government,
community and other groups and individuals involved with the provision
of, or receipt of housing assistance in Australia. The closing date for
submissions was originally 1 May 1997, which was subsequently extended
to 30 May 1997 although the Committee continued to receive submissions
throughout the course of the inquiry. The Committee received 302 submissions
indicating a high level of interest in some sections of the community
in the impact of reforms to housing assistance which had been discussed
at Council of Australian Governments (COAG) meetings since 1995. Many
of the submissions from advocacy groups included letters from individuals
and case studies documenting the hardships faced by disadvantaged members
of the community in obtaining secure and affordable housing. [1]
Appendix 1 contains a list of all the submissions made to this inquiry.
1.4 The Committee held three days of public hearings, in Melbourne on
4 August, in Sydney on 5 August and in Canberra on 29 August 1997. Witnesses
who gave evidence at the public hearings are listed in Appendix 2.
1.5 Members of the Committee also inspected 3 community housing organisations
in Canberra on 20 November 1997. The Committee wishes to thank Community
Housing Advisory Service of the ACT (CHASACT) and the organisations visited
for this opportunity. The Committee expresses its appreciation to all
those people who made submissions, provided additional material and information,
or gave evidence to the inquiry.
The Commonwealth State Housing Agreement
1.6 Responsibility for housing assistance is divided between the Commonwealth
and State and Territory governments. The Commonwealth-State Housing Agreement
(CSHA) is a joint arrangement between the Commonwealth and the States
which has been in place for fifty years. Under the Constitution housing
is the sole responsibility of the States. However the Commonwealth has
responsibility for income maintenance payments such as Rent Assistance.
The Commonwealth also has responsibility for taxation measures which affect
housing.
1.7 Currently the Commonwealth provides grants to the States [2]
through the Commonwealth State Housing Agreement (CSHA) for:
- public and community housing;
- housing assistance to special needs groups, for example Aboriginal
and Torres Strait Islander people and people requiring crisis accommodation;
and
- housing-related services, such as assistance with rent, bond and relocation
costs for people renting privately, and home purchase assistance including
short-term relief for people experiencing problems meeting their mortgage
repayments and/or deposit assistance. [3]
1.8 The first CSHA was signed in 1945 to address severe post-war housing
supply shortages through the construction of public rental housing. Subsequent
Agreements have had a different emphasis, with home ownership being the
focus from 1956 until the mid 1970s. From 1978 onwards the emphasis moved
to assisting those on low incomes. The current CSHA was signed in 1996.
[4]
1.9 Under the CSHA, in addition to being responsible for delivery of
public and community housing and other assistance, the States are responsible
for land tax and residential tenancy legislation (covering private as
well as public rental housing). [5] Planning
and regulation of land use, including for private rental housing, is also
the responsibility of State and local governments. [6]
1.10 The Commonwealth also provides Rent Assistance (RA) through the
social security system. RA is a supplementary payment to assist with the
additional cost of private rental housing for Commonwealth income support
recipients and low income families. All pensioners, social security beneficiaries
and low income family payment recipients may be eligible, depending on
the level of rent they pay. [7]
Proposed changes to Commonwealth State responsibilities
1.11 Proposals suggesting major changes to the division of responsibilities
for housing assistance were discussed through the Council of Australian
Governments (COAG) meetings between 1995 and 1997. The following changes
were proposed:
- Commonwealth funding of rental subsidies for both public and private
tenants;
- Commonwealth ceasing to fund the States for the expansion of the public
rental stock; and
- States accepting total responsibility for the provision of public
rental housing. [8]
1.12 These proposals were first brought forward by the former Keating
government and appeared at first to have been adopted by the Howard government
following its election in 1996. However they are not currently being pursued
by the Commonwealth government. In the 1997 budget, the Commonwealth announced
that funding would be provided for the CSHA until 30 June 1999, which
is when the 1996 agreement is due to expire. As yet there has been little
discussion between the Commonwealth and the States on proposals for the
post-1999 arrangements apart from preliminary meetings between the Commonwealth
and some of the States and Territories. [9]
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FOOTNOTES
[1] For example: Submission No.77, p.21 (Illawarra
Social Housing Forum), Submission No.106, Appendix A, (St George Community
Housing Co-Op. Ltd), Submission No.195, pp.8-28 (Rooming House Tenants
Association Inc).
[2] Note: Wherever reference is made to `States'
in this report, it is intended that Territories are also included.
[3] Submission No.261, p.5 (DSS).
[4] Submission No.261, pp.8-9 (DSS).
[5] Submission No.261, p.3 (DSS).
[6] Transcript of Evidence, p.274 (ALGA).
[7] Submission No.261, vol 1, p.5, and vol 2,
p.5 (DSS).
[8] Council of Australian Governments' Meeting,
Communique, 14 June 1996, Canberra.
[9] Transcript of Evidence, pp.323-24
(DSS).