Ministerial Statement

Housing Trust Triennial Review

The Hon. Z.L. BETTISON (Ramsay—Minister for Communities and Social Inclusion, Minister for Social Housing, Minister for Multicultural Affairs, Minister for Ageing, Minister for Youth, Minister for Volunteers) (14:04): I seek leave to make a ministerial statement.

Leave granted.

The Hon. Z.L. BETTISON: The South Australian Housing Trust Act 1995 requires the responsible minister to have a report prepared on the operations and administration of the South Australian Housing Trust in every three-year period. This report must be prepared by a person who is independent to the trust.

Elton Consulting were appointed in August 2013 to conduct the review for the period 2009-10 to 2012-13. The terms of reference were focused on reviewing the performance of the South Australian Housing Trust in the national context and looking at options and approaches for the trust into the future. The review process was conducted in a number of stages, including consultation with the South Australian Housing Trust Board, a variety of social housing providers, and officers of the Department of Treasury and Finance and Housing SA, to come to an independent view about the South Australian Housing Trust and its operations.

The review shows that the overall performance of the trust in the review period 2009-10 to 2012-13 is positive and compares favourably to other state housing authorities. The review also provides some useful options on future directions for reform and is not simply a report card detailing the achievements of the trust in the review period. It describes four main areas of reform relating to public housing operations, enhancing private rental assistance, transitioning to a multi-provider housing system and, importantly, recognising the importance of commonwealth government support for housing and service delivery.

The triennial review reaffirms this government's view that housing affordability has become one of the major challenges facing contemporary Australia. The South Australian government is acutely aware of the challenges facing the trust and other public housing authorities, which include issues of long-term sustainability in an environment of uncertain commonwealth government funding alongside an increasing demand for the services provided to those most vulnerable and at risk.

The triennial review report is provided at a time of considerable national change in housing and homelessness funding and coincides with the release of a number of national reviews initiated by the commonwealth government in the last 12 months, including the National Commission of Audit, released in May 2014; the McClure Review of Australia's Welfare System (interim report released on 29 June 2014); the White Paper on Reform of the Federation (which includes issues papers on health, housing and education) announced on 28 June 2014; the white paper on the reform of the taxation system to be announced in 2015; and the Forrest review, the review of Indigenous training and employment programs publicly released on 1 August 2014.

In addition, the 2014-15 federal budget handed down in May 2014 will lead to a number of changes in the housing and homelessness sector over the next 12 months. In South Australia and other jurisdictions, growing budget pressures will necessitate an examination of housing and homelessness services and programs. A review of housing and homelessness funding was indicated in the federal budget papers and will occur in 2014-15, and substantial changes are being telegraphed by the commonwealth government for the provision of housing and services under the National Partnership Agreement on Remote Indigenous Housing.

Individually or collectively, the recommendations contained in these four national reviews are likely to have a significant impact on how housing assistance and housing programs are to be funded in the future. This will directly influence the housing reform agenda in South Australia and the ability to develop and implement many of the recommendations proposed in the triennial review. The South Australian government welcomes the triennial review and intends to carefully consider and work through the recommendations, especially as they relate to providing effective and efficient housing services to people who are impacted by declining housing affordability.

We do not intend at this time to rule recommendations in or out, as we believe this would be premature in the context of the considerable commonwealth-led reviews underway. We do note, though, some concerns with recommendations 3 and 8, regarding requiring housing assistance agreements and social contracts. While government absolutely supports the outcomes envisaged through mechanisms such as social contracts, we would need to investigate further whether such approaches are the best method by which to achieve these outcomes.

More broadly, the triennial review recommendations provide an opportunity for South Australia to advocate for financial and economic models that could achieve a more sustainable funding approach by the commonwealth, states and territories to address the ever-increasing challenges of housing affordability, housing supply and homelessness that are facing contemporary Australia.