Australia has a housing affordability problem, with many Australians struggling to rent or buy a home, according to the Productivity Commission\u2019s review of the National Housing and Homelessness Agreement (NHHA) released today.<\/p>\n\n\n\n
\u201cThe NHHA is intended to improve access to affordable housing, but it is ineffective. It does not foster collaboration between governments or hold governments to account. It is a funding contract, not a blueprint for reform,\u201d Commissioner Malcolm Roberts said.<\/p>\n\n\n\n
\u201cOver the life of the NHHA, housing affordability has deteriorated for many people, especially people renting in the private market. The median low-income renter spends over a third (36 per cent) of their income on rent. About 1 in 5 low-income households are left with less than $250 after paying their weekly rent.<\/p>\n\n\n\n
\u201cWith the private market becoming less affordable, demand for homelessness services and social housing is rising.\u201d<\/p>\n\n\n\n
As governments develop a new intergovernmental agreement and a national plan, there is an opportunity to better target the $16 billion they spend on housing assistance.<\/p>\n\n\n\n
\u201cAs a first step, the Commission is recommending that all housing assistance be brought under the next intergovernmental agreement (the NHHA covers just 10 per cent of government spending on direct housing assistance). This will help governments prioritise spending to the people in greatest need.<\/p>\n\n\n\n
\u201cA two-track approach is needed to ease the pressure on low-income renters \u2014 the capacity for low-income renters to pay for housing needs to be improved and constraints on new housing supply need to be removed.\u201d<\/p>\n\n\n\n
The $5.3 billion Commonwealth Rent Assistance program should be reviewed. There is a strong case to improve its adequacy and targeting. At the same time, State and Territory Governments should commit to targets for new housing supply and accelerate planning and other reforms.<\/p>\n\n\n\n
\u201cThe safety net \u2014 homelessness services and social housing \u2014 should be improved. More support is needed for homelessness prevention and early intervention programs. As governments invest more in social housing, they should also test more flexible and timely ways to assist people,\u201d Commissioner Romlie Mokak said.<\/p>\n\n\n\n
\u201cThe Commission is recommending the new NHHA have a greater focus on coordinated policy action across jurisdictions, homelessness prevention and early intervention, and Aboriginal and Torres Strait Islander housing.\u201d<\/p>\n\n\n\n
A full copy of In Need of Repair: The National Housing and Homelessness Agreement is available from the Commission\u2019s website: www.pc.gov.au\/inquiries\/completed\/housing-homelessness\/report<\/p>\n\n\n\n
Key facts: Key points<\/p>\n\n\n\n
Australia has a housing affordability problem. Australians, particularly those on low incomes, are spending more on housing than they used to. Many low-income private renter households spend a large share of their income on rent. Demand for social housing is rising. More people are seeking help for homelessness and more are being turned away. Home ownership rates are falling, particularly for young Australians.<\/p>\n\n\n\n
The National Housing and Homelessness Agreement \u2014 intended to improve access to affordable, safe and sustainable housing \u2014 is ineffective. It does not foster collaboration between governments or hold governments to account. It is a funding contract, not a blueprint for reform.<\/p>\n\n\n\n
The next intergovernmental Agreement (and the proposed National Housing and Homelessness Plan) is an opportunity for governments to work together on a national reform agenda to make housing more affordable. Rising rents and low vacancy rates are placing private renters under pressure, which increases demand for government-funded housing and homelessness services.<\/p>\n\n\n\n
The focus of the next Agreement should be on improving the affordability of the private rental market and the targeting of housing assistance. Improving the capacity of low\u2011income renters to pay for housing and removing constraints on new housing supply are key to making housing more affordable.<\/p>\n\n\n\n
\u2022 The Australian Government should review Commonwealth Rent Assistance as a priority. There is a strong case for changes to improve its adequacy and targeting.<\/p>\n\n\n\n
\u2022 State and Territory Governments should commit to firm targets for new housing supply, facilitated by planning reforms and better co-ordination of infrastructure.<\/p>\n\n\n\n
\u2022 The $16 billion governments spend each year on direct housing assistance could achieve more if it was better targeted to people in greatest need. The nearly $3 billion given to first home buyers works against improving affordability. This money would be better spent preventing homelessness.<\/p>\n\n\n\n
\u2022 Social housing is an important part of the affordable housing solution, but it has a number of shortcomings. Governments should trial a housing assistance model that provides equivalent assistance to people in need regardless of whether they live in public, community or privately\u2011owned housing. It should also test innovative ways to help people at risk of homelessness sustain tenancies in the private market and assist social housing tenants move to the private rental market.<\/p>\n\n\n\n
These changes will help more low\u2011income households in the private rental market and reduce the number of people who experience homelessness or need social housing.<\/p>\n\n\n\n
The next Agreement can support these changes by including:<\/p>\n\n\n\n
\u2022 principles to guide how housing assistance should be provided and assistance dollars spent<\/p>\n\n\n\n
\u2022 a broader scope, covering all forms of direct housing assistance<\/p>\n\n\n\n
\u2022 achievable and measurable targets focused on outcomes for people<\/p>\n\n\n\n
\u2022 a new performance monitoring framework with annual reporting on outcomes and performance indicators<\/p>\n\n\n\n
\u2022 effective governance, including oversight by a ministerial council and channels for key stakeholders to be involved in the design and delivery of major programs<\/p>\n\n\n\n
\u2022 a new approach to supporting Aboriginal and Torres Strait Islander housing and homelessness services<\/p>\n\n\n\n
\u2022 a greater focus on building the evidence base essential for good policy and accountability.<\/p>\n","protected":false},"excerpt":{"rendered":"
Australia has a housing affordability problem, with many Australians struggling to rent or buy a home, according to the Productivity Commission\u2019s review of the National Housing and Homelessness Agreement (NHHA) released today. \u201cThe NHHA is intended to improve access to affordable housing, but it is ineffective. It does not foster collaboration between governments or hold … Continue reading “In need of repair: The National Housing and Homelessness Agreement”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-18413","post","type-post","status-publish","format-standard","hentry","category-aussie"],"_links":{"self":[{"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/posts\/18413","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/comments?post=18413"}],"version-history":[{"count":1,"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/posts\/18413\/revisions"}],"predecessor-version":[{"id":18414,"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/posts\/18413\/revisions\/18414"}],"wp:attachment":[{"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/media?parent=18413"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/categories?post=18413"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/tags?post=18413"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}