The Productivity Commission has completed a review of an agreement among the Australian, State and Territory Governments to honour a national Housing and Homelessness Agreement, declaring the Agreement to be “ineffective.”
In its report Need of Repair: The National Housing and Homelessness Agreement – Study report the Commission examined how well the Governments achieved the objectives, outcomes and outputs they set out in the Agreement, and the suitability of the Agreement for the future.
According to Productivity Commissioner Malcolm Roberts, Australia has a housing affordability problem with many Australians struggling to rent or buy a home, a situation confirmed in the National Housing and Homelessness Agreement (NHHA).
“The NHHA is intended to improve access to affordable housing, but it is ineffective,” Commissioner Roberts said.
“It does not foster collaboration between Governments or hold Governments to account. It is a funding contract, not a blueprint for reform.”
He said that over the life of the NHHA, housing affordability has deteriorated for many people, especially people renting in the private market.
“The median low-income renter spends over a third (36 per cent) of their income on rent,” Commissioner Roberts said.
“About 1 in 5 low-income households are left with less than $250 after paying their weekly rent,” he said.
“With the private market becoming less affordable, demand for homelessness services and social housing is rising.”
He said that as Governments develop a new intergovernmental agreement and a national plan, there is an opportunity to better target the $16 billion they spend on housing assistance.
“As a first step, the Commission is recommending that all housing assistance be brought under the next intergovernmental agreement (the NHHA covers just 10 per cent of government spending on direct housing assistance),” Commissioner Roberts said.
“A two-track approach is needed to ease the pressure on low-income renters.”
He said the $5.3 billion Commonwealth Rent Assistance program should be reviewed as there was a strong case to improve its adequacy and targeting.
“At the same time, State and Territory Governments should commit to targets for new housing supply and accelerate planning and other reforms,” the Commissioner said.
Commissioner Romlie Mokak called for the safety net — homelessness services and social housing — to be improved.
“More support is needed for homelessness prevention and early intervention programs,” Commission Mokak said. “As governments invest more in social housing, they should also test more flexible and timely ways to assist people,” he said.
The Productivity Commission’s 600-page Report can be accessed at this PS News link.
