The federal government’s “cavalier dismissal” of a Productivity Commission call for a national inquiry into the housing needs of low-income earners is shocking.
“It’s simply not good enough for the federal treasurer (Mr. Costello) to say that an inquiry is not needed and that the government already provides ‘significant resources’ for the housing needs of low-income housing consumers,” said Ms Mary Perkins, executive officer of the peak advocacy body for low-income housing consumers, today.
“Perhaps Mr. Costello hasn’t noticed that in the past decade Commonwealth grants through the Commonwealth State Housing Agreement have dropped by more than 25 percent.
“Perhaps he hasn’t noticed that Commonwealth rent assistance still leaves a third of its welfare recipients in housing stress.
“Perhaps he hasn’t noticed the solid research establishing that rents are unaffordable for the working poor anywhere in the Sydney or Melbourne metropolitan areas.
“Perhaps he hasn’t noticed the 28 percent drop in the availability of low-cost rental stock for low-income consumers.
“Perhaps he doesn’t notice that by far the greatest indirect assistance of all goes to high-income home owners.
“Unfortunately this typical a government that sees only the problems faced by middle-income home purchasers in the current state of the market, but can’t swallow even the moderate recommendations of its own Productivity Commission.
“And on that score, of course negative gearing should be better targeted, of course first home owner grants should be targeted at lower-income groups, and of course full capital gains tax should be restored to property sales.
“The fact remains that government policy has failed abysmally to house those most in need, and the Productivity Commission is to be congratulated in calling for an inquiry.”