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Legislative Council - Fifty-Second Parliament, Second Session (52-2)
2012-09-05 Daily Xml
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HOUSING STRESS

The Hon. T.A. FRANKS (14:50): I seek leave to make a brief explanation before asking the Minister for Social Housing a question on the topic of housing stress.

Leave granted.

The Hon. T.A. FRANKS: As the minister would be well aware, housing stress is defined in the State Strategic Plan, and other places, as a situation where a household of less than 80 per cent of the median income is paying more than 25 per cent of that income on rent or more than 30 per cent on a mortgage. That is, I assume, why we have a target—specifically, 6.8—in the South Australian Strategic Plan, which quite laudably states that there is an aim to 'halve the number of South Australians experiencing housing stress by 2014'; a target, however, that we are not making progress towards. I note that the 2006 report on the Strategic Plan target 6.8 read 'unclear', in 2008 it read 'negative movement' and 'unlikely' and, indeed, in 2010 it again read 'negative movement' and 'unlikely'. I also observe that in the 2010 explanatory comment to this target the report noted:

Technically, there should be no public housing tenants experiencing housing stress. Housing SA's policy states that no tenant will pay more than 25 per cent of their income on rent. Indeed, data on the target excludes public housing.

Yet, according to the Common Ground website (accessed yesterday) in FAQ to potential residents, they are told in relation to the question: 'How much rent will I pay?':

Rent is based on 30 per cent of the total gross (before tax) weekly income. If the tenant is eligible for Rent Assistance, 50 per cent is included in the rent.

So, not only are Common Ground residents expected to pay 30 per cent and not the stated government policy of 25 per cent of their income on rent under this government-supported project, I understand that they have recently been compelled to provide 100 per cent of their rent assistance to Common Ground management.

The Greens support the South Australian Strategic Plan's target of 6.8. We believe it should be transparently applied to those in social housing in this state, whichever category or model the tenant might fall into. My questions to the minister are:

1. The Greens support the reduction of housing stress in this state. Why is it that the government does not?

2. Further, will the minister now commit to ensure that no social housing tenant need live in housing stress under this state government as a result of Housing SA or any other state government policies and practices?

The Hon. I.K. HUNTER (Minister for Communities and Social Inclusion, Minister for Social Housing, Minister for Disabilities, Minister for Youth, Minister for Volunteers) (14:53): I thank the honourable member for her most important question. It is a bit sad, therefore, that she would ask it in such a ridiculous way. Of course the government supports people in South Australia who are experiencing housing stress and we do what we can to assist them, and I will go through the ways.

First of all, the member referred to rental assistance. I assume she has taken that from the commonwealth rent assistance (CRA). Rental assistance is not meant to be an income supplement; it is meant to assist to pay rent. When people are in the private rental market they can attract CRA, as most of us would know. When they are being provided with housing by the NGO sector it is entirely appropriate, if it is negotiated with the tenant, for the NGO housing provider to ask for 100 per cent of the CRA. They do that and the tenant acquiesces because the CRA is designed to support their rental, not their income.

The supply of affordable housing in South Australia has been significantly increased over the past couple of years through our funding agreement with the federal government, the National Partnership Agreement on Social Housing. There have been 1,360 newly constructed homes and the refurbishment of more than 500 others through the Nation Building—Economic Stimulus Plan. Housing SA is also partnering with community organisations to construct 500 new affordable rental properties through the Affordable Housing Innovations Fund.

This project is funded by revenue received from the sale of public housing properties to public housing tenants through the HomeStart Equity Start Loan. Further to this, the South Australian government has introduced a requirement for the provision of 15 per cent affordable housing with significant new developments. This has achieved more than 2,200 new commitments from 25 developers to date and a further 2,000 commitments are under negotiation currently.

Another successful partnership between the state and commonwealth government is the National Rental Affordability Scheme. It aims to construct 3,800 new private rental properties which must be offered for rent at a minimum of 20 per cent discount below the market rate. These properties are to be offered to low to moderate income households so that there is an increase in the availability of affordable private rentals for working class families.

The Urban Renewal Authority (URA) was established in March 2012 with a strong focus on affordable housing. A key objective of the URA is to provide opportunities for an increased number of South Australians to live in houses which are both affordable and in an area of their choice. The URA will partner with Housing SA to develop a new housing strategy for South Australia which is due for release during 2012. The new strategy will outline directions for our state with particular emphasis in the area of affordable housing.

Consultation on the strategy began late in 2011 and feedback from stakeholders has highlighted the need for continued efforts to ensure our communities are safe, healthy and sustainable. Affordable housing is a key ingredient to achieving these goals. Public housing is a limited resource which is increasingly being targeted to those in greatest need, those on low and fixed incomes, the homeless and those at risk of becoming homeless.

While Housing SA offers the provision of public housing, it offers assistance and provides advice on a range of housing services to South Australians. This can include financial assistance with bond and rent for low income renters to gain access to private rental housing, information regarding housing options to enable people to make informed choices on tenure services and products appropriate to their needs, referral services to appropriate agencies and organisations for those experiencing housing crisis, and finally advocacy for private renters experiencing poverty, instability or inadequate housing in the private rental market.

This government recently made affordable housing a focus area, with an affordable place to live being identified as one of the seven strategic priorities under South Australia's Strategic Plan. A cabinet level task force has been established to drive this and is supported by a cross-agency senior officers group. This government is delivering on affordable housing outcomes for South Australians and to suggest otherwise by the honourable member is absolutely rubbish.

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