State housing budget

Shelter NSW media release – 4 June 2008

So so – maintaining the status quo won’t do the job

The state's advocacy organisation for low-income housing consumers has expressed disappointment that the housing component of the NSW state budget failed to adequately address the growing needs of many low-income households.

Shelter NSW's executive officer, Mary Perkins, said that ‘the budget is business as usual, but for many households, times are more difficult than usual and we would have liked a more generous response.’

We note with concern that the estimated outputs show:

A net loss of 217 properties in social housing;
An estimated decrease in the number of new households to be assisted with public, community and Aboriginal housing. It is estimated that 237 fewer new households will receive assistance;
An estimated decrease in the number of households to be assisted with public, community and Aboriginal housing. It is estimated that 160 fewer households will be assisted this year from last year;
No increase in the provision of rent assistance to low income households establishing new tenancies in the private rental market. It is estimated that provision of rent assistances under the RentStart program will remain static at 55 000;
No allowance for an increase in the number of households with needs relating to health and disability receiving special rent subsidies in private rental housing. It is estimated that the number of households assisted will remain static at 1350.

We welcome the slight increase in the number of crisis accommodation places from 4500 to 4550 but suggest this is insufficient to meet the needs of those who are homeless and at risk of homelessness.

We also welcome the increase in provision for mortgage assistance from 207 to 250 households.

Ms Perkins also welcomed a capital enhancement of $70 million to Housing NSW, which is the fourth tranche of a 4-year capital enhancement agreed to by the Treasurer in the 2005/06 budget. ‘However the promised enhancement was for $190 million over 4 years and the total amount received over the 4-year period is $50 million short of the agreement', Ms Perkins said.

This capital enhancement was part of a deal that recognised the need to address issues concerning the maintenance and suitability housing stock. The deal acknowledged that Housing NSW was not able to fully address these issues with revenue collected from rents because most of its tenants are on very low incomes and receive rent rebates. The need for these funds is as great now as it was 4 years ago.

‘We call on the treasurer to make good the commitment.

‘We would like to see how the Government is planning to face the various housing challenges on a range of fronts. Most of the households experiencing extreme financial stress due to unaffordable housing are living in the private rental market. This budget does not do enough to assist them.

'A promised Affordable Housing Strategy is now 2 years overdue. The people of New South Wales would be in a better position to see how the Government thinks housing unaffordability should be addressed if we could see that strategy’, Ms Perkins concluded.

Enquiries: Mary Perkins on 0419 919 091; (02) 9267 5733 ext.14.

[Ends]