Jodie Campbell (Bass, Australian Labor Party) Share this | Hansard source

The Australian people were told by the previous government that they had never been better off. Well, on this side of the House we know how flagrantly untrue and out of touch that statement, delivered by the former Prime Minister, really was. That is why we made a commitment to the Australian people that we would do what we could as a national government to ease the burden and to relieve some of the pressure, particularly financial, under which so many in our community are suffering. That was a commitment that I made as I travelled around Northern Tasmania and spoke with the electors of Bass. It was a pledge that I made with confidence, and that is why I am proud to add my voice in support of the Rudd government’s National Rental Affordability Scheme.

At no time, I believe it is fair to say, has it been harder for people, particularly those on low and moderate incomes, to find affordable rental accommodation. We hear a lot about the prohibitive cost of housing in and around the major cities like Sydney and Melbourne. I have no doubt that things are difficult. Let me assure everyone that across the towns and communities of Northern Tasmania too families are struggling. The most recent census figures show that 40 per cent of renting households in my electorate of Bass are under rental stress. That is to say that these households, these hard working Australians and families, spend more than 30 per cent of their income just to pay the rent. Forty per cent of renters—I find that an absolutely frightening thought. This equates to 2,676 families who are struggling with their budgets each and every week, and this is in a climate of ever-rising rents. It is a disturbing trend, to say the least. For example, in the last year alone the rent on a two bedroom home in Launceston has risen by 13½ per cent. It is now $210 per week. It is little wonder families are struggling. For a three bedroom home the average rent is $240 per week and for a four bedroom home it is well over $300 per week. Vacancy rates are at critically low levels and rents are increasing faster than other everyday living costs.

It should be remembered and noted that cost-of-living expenses are also rising, adding to the pressure families are feeling. As I mentioned, it is not just Tasmania that is affected by these issues. It is nationwide and therefore demands not only a whole-of-government response but a whole-of-country response. Research by the National Centre for Social and Economic Modelling found that across Australia there were 1.1 million low and moderate income households in housing stress in December 2007. Nearly 700,000 of these families are now spending more than 30 per cent of their limited incomes just to pay the rent. It has a knock on effect also; it means that the great Australian dream of home ownership is moving further and further out of reach of so many. Families and workers who in the past would have rented and used that as a stepping stone to buying their own home are now finding it much tougher to do that. These people are being forced to move house, live in cramped conditions and cut back on essentials just to keep a roof over their heads. This is having an enormous impact on families, workers, young people and pensioners. Rental affordability pressures are driven by a poor supply of affordable rental housing. That is why increasing the supply of affordable rental properties is a major priority for the Rudd government.

The National Rental Affordability Scheme is a $623 million investment by the government to create 50,000 affordable rental properties for low and moderate income earners in its first four years. The scheme delivers on one of the government’s key 2007 election commitments. The scheme provides incentives to participants to build new dwellings for renting to low and moderate income households at 20 per cent below market rents. If market demand stays strong, the government will expand it to 100,000 properties over the following five years. There are two key elements to the scheme. They are: an annual Australia government contribution of $6,000 for each dwelling in the form of a refundable tax offset or payment; and an annual state or territory government contribution of $2,000 or more for each dwelling, which will be provided through cash payments or in-kind financial support.

This represents a substantial investment in affordable housing for low- and moderate-income Australians. It demonstrates the government’s long-term commitment to affordable rental housing and also acknowledges that the issue will not be resolved overnight. The scheme is a new opportunity for all levels of government to work together with business and not-for-profit organisations to increase the supply of affordable rental housing for Australian families. It will facilitate new and creative partnerships between institutional investors, developers and community housing providers.

The importance of the community housing sector to the success of the National Rental Affordability Scheme cannot be overstated. In my home state of Tasmania there are more than 2,700 people currently waiting for public housing. If this scheme relieves some of the pressure on the public housing system then the flow-on effects can only be positive. As a government we believe that the National Rental Affordability Scheme will bring substantial growth to the community housing sector, whether it is tenancy managers or owners and developers in a consortium. The incentives are intended to leverage private sector investment of up to $13 billion over the next four years, with more than 1½ million households anticipated to be eligible to rent the dwelling at, as I mentioned, a 20 per cent discount on market prices. This is perhaps the government’s most ambitious new initiative. It will also form part of the national affordable housing agreement. It will benefit key workers like entry-level police officers and teachers, carers, cleaners, retail and hospitality staff and childcare professionals.

Mr Deputy Speaker, as you can doubtless imagine, the Tasmanian Council of Social Service, or TasCOSS, has welcomed the scheme. It is, according to Tom Muller, the council’s chief executive officer, a step in the right direction, particularly after a decade of funding decreases across public housing. It is estimated that over the last 10 years the amount of funding committed in this area decreased by 30 per cent in real terms.

Whilst I believe there is some way to go and there will always be more work to be done, the Rudd government’s commitment on homelessness is clear. One of the first things Labor did was to appoint a Minister for Housing, something which simply did not exist during the Howard years. I am proud to say that a degree of compassion is being restored in the federal arena, and we are committed to working with the states to find solutions in relation to this. There is a crisis of affordability and now is simply not the time to continue passing the buck between different levels of government.

The National Rental Affordability Scheme is a supply-side measure increasing the supply of affordable rental properties. These incentives, provided by the Australian and state governments, are valued at $8,000 each year. If there continues to be demand, the government will expand the scheme by an additional 50,000 incentives over the following five years—further growing our investment in Australia’s affordable housing stock. This demonstrates the government’s long-term commitment to affordable rental housing and also acknowledges that the issue will not be resolved overnight.

This too has been acknowledged by TasCOSS. It, along with its national body, has six recommendations which it sees as solutions to the public housing shortage and housing affordability. They are:

A Growth Target should be established involving an increase in the stock of public and non-profit housing by 30,000 additional dwellings by 2012.

An Affordable Housing Growth Fund should be established with funding of $7.5 billion over 4 years strictly ear-marked for expanding the stock of public and non-profit housing, contributed on a proportional matching basis by the Commonwealth and the States/Territories.

An Operating Subsidy Program should be established, with funding of $3.5 billion over four years provided by the Commonwealth.

These funding arrangements will require approximately $5 billion above funding currently provided by the Commonwealth and State/Territory Governments through the Commonwealth State Housing Agreement (CSHA).

New stock should meet standards relating to dwelling quality, disability accessibility and energy efficiency.

Commonwealth Rent Assistance (CRA) should be reviewed to ensure that it best meets the needs of all low income renters. As a first step, the maximum rate of CRA should be increased by 30% … for low income households currently receiving the highest rate of CRA at a cost of $500 million per annum.

This list stems from a knowledge and understanding of just how dire the situation is for many in our community. According to TasCOSS:

There are at least 600,000 families and singles in the private rental market in housing stress. This represent 65% of low income private renters.

Approximately 180,000 households are on public rental housing waiting lists. Eligibility is extremely limited, with access restricted to the most severely disadvantaged.

The supply of public housing has declined by approximately 30,000 dwellings between 1996 and 2006 from 372,000 to 341,000 dwellings.

As I mentioned earlier, Commonwealth funding for public and non-profit housing has fallen by around 30 per cent in real terms since 1996. More than 32 per cent of households receiving Commonwealth rent assistance still pay more than 30 per cent of their income on rent. There is a national shortage in the annual supply of new housing per year of more than 30,000 dwellings, and more than 105,000 people experience homelessness on any given night.

I realise, as does the government, that the issues affecting the public and private housing sectors are not identical. However, I believe that if we can address issues of affordability in the private sector through schemes such as the National Rental Affordability Scheme then the potential is there to ease the burden on the public sector. Neither can or should be viewed in isolation. To boost the capacity of the not-for-profit sector to be involved in providing housing as a part of the scheme, the Australian government has set up a capacity-building strategy. This strategy will specifically target the not-for-profit community housing sector. We have committed $1.5 million over two years to the strategy.

While we are working hard to ensure these ambitious housing projects and programs are implemented, picked up and used to their full advantage, I, like the Minister for Housing, will continue listening to the people who take the time to contact me regarding issues surrounding housing. Let me tell you, there are many of those in Northern Tasmania. These are the people who are directly affected by these problems and solutions.

I would like, if I may, to take a moment to speak of the Rudd government’s $10.4 billion Economic Security Strategy and, specifically, the first home buyers scheme boost. This yet again demonstrates this government’s commitment to assisting people to enter the property market. In my home state of Tasmania, if history is any indication, almost 2½ thousand people will be in a position to take advantage of the boosted scheme. That means that for existing properties the grant is now $14,000, while for newly built homes the grant is $21,000. This, like many of the government’s policies, demonstrates that we understand the pressures families and working Australians are under. We appreciate how difficult it is for many people attempting to enter the housing market.

The first home owners scheme boost is a decisive Rudd government initiative to stimulate housing activity and give first home buyers a better chance in the housing market. The Rudd government is making sure our economy emerges in strong shape from these tough international times so that we can provide quality jobs and security for working families into the future. To that end, I commend the National Rental Affordability Scheme Bill 2008 and the National Rental Affordability Scheme (Consequential Amendments) Bill 2008 to the House, secure in the knowledge that, as a government, we are acting across the board to assist both renters and buyers.

See this speech in context