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House of Assembly - Fifty-Third Parliament, Second Session (53-2)
2017-08-08 Daily Xml
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Community Housing

Mr BELL (Mount Gambier) (15:08): My question is to the Minister for Local Government. In light of comments by LGA president, Lorraine Rosenberg, has the minister sought a meeting to discuss the LGA's concerns regarding rate rebates for community housing being transferred from South Australian Housing Trust stock?

Members interjecting:

The SPEAKER: The member for Schubert is already on two warnings.

The Hon. S.C. MULLIGHAN (Lee—Minister for Transport and Infrastructure, Minister for Housing and Urban Development) (15:08): I thank the member for Mount Gambier for his question. The housing transfer program is being conducted by Renewal SA as part of the housing portfolio where a number of Housing Trust houses are to be managed by community housing organisations in the future. The member for Mount Gambier highlights the issue that some councils are concerned about, that is, that the transfer to these community housing providers will entitle these providers to a significant rate rebate—75 per cent, I think it is—for the council rates which would otherwise be paid for these properties.

Some councils are concerned about that potential loss of rating revenue, particularly those councils that might have a significant number of houses that are being transferred in their council area. To give you an idea of the scale of the program, 4,500 houses are being transferred in several tranches across South Australia. I think the member for Mount Gambier's council areas are included in that, as well as metropolitan councils and other regional councils.

It's important to make it clear, though, that it's not just a simple equation of a number of houses being transferred and there being a calculation as to what the impact will be on rates because part of the drive of this program of the transfers is to enable for the first time these dwellings to attract the commonwealth rental assistance. That will provide additional income for the property, and it will mean that the housing providers have a greater source of revenue for those dwellings than will be the case if the Housing Trust maintain them for themselves.

With that additional revenue, they are able to make further investments in housing stock in the area in which those dwellings are. It might be improvements to individual dwellings, or it might even be the construction of further separate dwellings so that more people can be accommodated in social housing. On that basis, it's anticipated that, with all the transfers, there won't be a simple net impact of rate reductions that councils are worried about.

Yes, it is likely there will be some reduction but not of the quantum that they are anticipating from a simple calculation of X number of properties at a 75 per cent reduction in rating revenue. Indeed, there is likely to be a significant offset from the redevelopment activity, whether or not that leads to an increase in property values of those redeveloped properties, or the establishment of new dwellings, which become newly rated properties.

We have made it clear from the government's perspective that if councils, particularly regional councils, are concerned about this, they should approach the government and see whether there is not a case that can be made for a form of exemption or separate entitlement for those affected councils who are worried about the impact on their rating base so that they are not left too short of rating revenue and put in a difficult position so that they can't afford to maintain their services and maintenance of infrastructure, etc.

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