Shelter NSW has noted with concern that once again public housing for the most needy groups in the community has been left out in the cold in the just-announced NSW mini-budget.
At present the Department of Housing is losing $5 million a week on its shrinking rental returns from tenants on ever-lower incomes, and it cannot going on doing so without cannibalizing its stock – a recent newspaper headline reckoned there would be no public housing in ten years’ time.
"Shelter NSW supports the reforms to land tax and stamp duty in the interests of hosing down the overheated property market” said Shelter NSW Executive Officer Ms Mary Perkins today.
“It is surely inequitable, however, to offer further stamp duty exemptions to first home purchasers, while not giving a bean to the system that houses the very poorest people.
“Has the government not noticed that public housing is in crisis, and in imminent danger of failing?
“Obviously we support increased funding for high-need areas like health, transport and education – but all of this is totally inadequate if people can’t find decent housing they can afford.
“Why is low-income housing the cinderella of state and federal policy, when it is so basic to human needs?
“And in addition, given the fact that NSW has a far lower top marginal rate of land tax than any other state, we find it extraordinary that at least some of the foregone tax could not instead have been redirected to public housing.”
Ms Perkins also noted that the people most at risk from the land tax and stamp duty reforms were tenants, who could well find themselves faced with increase in rental charges.
“The Premier should act now to ensure that low-income tenants will not be disadvantaged – either by making concessions for investors who rent their properties to tenants with low incomes, or by requiring landlords to prove increased costs in disputes over rental charges. Or both.”
Contact: Mary Perkins Executive Officer Shelter NSW - 0419919091