APY LANDS

In reply to the Hon. T.A. FRANKS (16 February 2012).

The Hon. I.K. HUNTER (Minister for Communities and Social Inclusion, Minister for Social Housing, Minister for Disabilities, Minister for Youth, Minister for Volunteers): I am advised:

1. Under the National Partnership Agreement on Remote Indigenous Housing, Housing SA has developed and implemented a new housing management model. This model includes the introduction of an Aboriginal Communities Interim Rent Policy. The Interim Rent Policy has a focus on simplicity to encourage a transition of rent payment by all adult members of the community.

Rent is calculated on the main source of assessable gross income of each adult tenant. Where the tenant does not have access to income, the rent assessment will be based upon the minimum rate of the equivalent Centrelink payment for which the person would be eligible as appropriate to their age and circumstances. Housing SA will assist in securing the relevant income with that person in consultation with Centrelink.

Housing SA has been collecting rent from these communities set at $20.00 per week per adult tenant. The $20.00 per week flat rate is for transitional purposes from a community housing model of tenancy management to the new housing management model for Aboriginal communities.

To encourage workforce participation in remote communities the Interim Rent Policy sought to address any workforce disincentives by deeming the income for those employed in non-Community Development and Employment Project (CDEP) positions at the equivalent of a Centrelink income.

This accounted for the fluctuating employment opportunities in remote communities and is aligned with the agreed policy drivers between the Commonwealth and State Governments.

The rent anomaly became apparent upon the transitioning from a flat rate to a percentage of income. The anomaly exists for persons employed in non-CDEP positions. With rent set at 15% of income, persons employed in non-CDEP positions are being assessed at the equivalent Centrelink benefit which will be less than 15% of actual income.

Housing SA records indicate that this is a small impact due to limited and often fluctuating employment opportunities. The Aboriginal Communities Interim Rent Policy is aimed at encouraging workforce participation within Aboriginal Communities.

2. The Aboriginal Communities Interim Rent Policy is currently being reviewed by Housing SA and the anomaly in rent charges will be addressed through this review. The review will be available for consultation in June 2012 and implemented as soon as practical.