Jennie George (Throsby, Australian Labor Party) Share this | Hansard source

I am pleased to follow my colleague the member for Forde on the National Rental Affordability Scheme Bill 2008 and associated legislation. He rightly pointed out that every electorate has its own housing and rental affordability issues. That is certainly the case in Throsby, as it is in the electorate of Forde and in the Illawarra region generally. When I last looked at the 2006 census data, I found then that nearly 11,000 households in the Illawarra were suffering mortgage stress. That data is a bit out of date now with the consecutive interest rate rises that came after the census data was collected, but interestingly enough in that five-year period between the 2001 census and the 2006 census there was in my region a 100 per cent increase in the number of households suffering mortgage stress.

Data has also shown that over 40 per cent of households in private rental arrangements in my electorate of Throsby are in rental stress, paying more than 30 per cent of their income on rent. As we know, the queues for public housing keep getting longer. That is no surprise, because of the impact of the huge cuts—around $3 billion in real terms—that are the legacy of the Howard government. On top of that, an estimated 1,500 people in my region face homelessness on any given night. It is no wonder that housing and rental affordability issues fared largely as priority issues in the lead-up to the federal election. There was no doubt in my mind that the proactive response of the Rudd Labor government was very important in connecting with the real-life experiences of a lot of people I represent in my electorate.

Of course, we have seen in the electorate of Throsby a lot of young couples being driven out of the housing rental market in Sydney and coming to establish their lives in a lovely part of the world, in the Illawarra. But we are also finding that the cost of the average home is now seven times the average wage when, not so long ago, it was about four times the average wage. So it is no wonder that many young people in my electorate are giving up on the idea of ever owning their own home. In that regard, the recent announcements made by the minister about the first home saver accounts were very welcome. Tonight, this specific bill that addresses the National Rental Affordability Scheme does provide some light at the end of the tunnel for all those people who found the going really tough.

The Rudd Labor government has always maintained that there are no silver bullets to cure the affordability issue, but we are committed to a comprehensive, affordable housing agenda. In that regard, I particularly welcome the Minister for Housing’s proactive approach in pursuing a range of innovative strategies to try to deal with the legacy left by an uncaring government for whom the issue of housing affordability did not even register on their list of concerns. As I said earlier, there is not a silver bullet and we cannot resolve the problems overnight, but we have backed our commitments with a significant outlay in the order of $2.2 billion to address a range of supply- and demand-side issues. Among those, of course, are the first home saver accounts that I referred to; the National Rental Affordability Scheme, which is encompassed in the bill before us tonight; a commitment to an audit of surplus Commonwealth land; the Housing Affordability Fund, which I hope, in my area, will help to drive down the price of new homes; the National Housing Supply Research Council, which will publish an annual report analysing the adequacy of construction and land supply; and, very importantly—and I will touch on this later—a commitment to build new homes for homeless Australians through the program called A Place to Call Home.

In the debate tonight we are looking at one specific policy proposal among a raft of innovative solutions to the affordability issue, and that is the National Rental Affordability Scheme. We know from the most recent data that, of the 1.1 million Australian household in housing stress, almost 700 of these household are in fact renters. They are renting in a private rental market where rent rises are outstripping, by far, wages growth and the cost of living index as measured in our inflation rate. Interestingly enough, the most recent data that I could find for the Illawarra, in a survey undertaken by our local research organisation called IRIS, showed that, in the quarter ending June 2008, rental markets in the Illawarra remained tight with demand continuing to outstrip supply. The report indicated:

At the start of the year it was the southern parts of the Illawarra that were seeing record increases in median rents, now the northern suburbs have followed suit. In the 12 months to June the median rent for a house in the Bulli to Woonona area jumped 17 per cent, from $310 to $365.

The region’s median rental price increased by 9 per cent to $300 during the year to June.

So in my electorate, in the region that I represent, the pressures on households with rental increases way ahead of the kind of wage increases people are receiving are really causing enormous stress for a lot of people. Of course, the more that people are asked to pay in rent, the harder it is for them to save for their deposit for their first home, so the Australian dream for lots of young couples is becoming less of a realistic proposition than it was in my generation.

The legislation before us tonight proposes that we provide a major supply-side initiative to make rental properties more affordable by encouraging large-scale investment in rental housing aimed at low- and moderate-income earners. As others have said, the scheme will offer institutional investors and other eligible bodies annual rental incentives every year for 10 years. These will be made up of a Commonwealth contribution of $6,000 per dwelling per year and a state contribution, which will be either direct financial support or an in-kind contribution to the tune of $2,000. As we know, these incentives will be available to providers only on the condition that dwellings are rented to low- and moderate-income households at 20 per cent below the market rate. We are aiming to create up to 50,000 new rental properties across Australia at a cost of $623 million in the first four years. This scheme provides, for the first time, a great opportunity for all levels of government, the business sector, and the not-for-profit organisations and the community sector in general to work together to increase the supply of rental housing for low- and middle-income earners.

Recently, I wrote to the Minister for Families, Housing, Community Services and Indigenous Affairs on matters brought to my attention by the Illawarra Legal Centre. The issues they raised with me related to the upcoming national affordable housing agreement. Specifically, they asked that I pursue with the minister Commonwealth funding for social housing, to ensure its sustainability and growth, and the supply of community housing owned and managed by non-profit organisations. They were keen to ensure that the not-for-profit sector would be included in the new National Rental Affordability Scheme.

In her response, the minister indicated that the new housing agreement would encompass housing assistance provided at all levels of government, including all programs funded through the Commonwealth-State Housing Agreement and the SAAP, as well as other measures aimed at making housing more affordable, including the scheme encompassed by this bill. Very importantly for the not-for-profit sector, the minister stated:

The Government recognises the important role of public and community housing. Public and community housing provides safe, secure and affordable housing for low income and disadvantaged Australians. Reform in social housing should improve the social and economic opportunities of tenants and provide for the long term sustainability of the social housing sector. I can assure you—

that is, the Illawarra Legal Centre—

that these issues are being discussed as part of the negotiation of the NAHA. The NAHA will include performance measures applying to the delivery of high quality and sustainable public and community housing.

The Government is supportive of an expanded role for not for profit community housing providers. The Government expects that the National Rental Affordability Scheme—

which is encompassed by the bill before us tonight—

will assist the community housing sector to grow, both as tenancy managers and owners of new stock. Under the National Rental Affordability Scheme Capacity Building Strategy, assistance will be available for not for profit affordable housing providers to help develop their capacity through grants and projects that target identified needs within the sector. The Government has committed $1.5 million over two years to assist affordable housing providers become involved in the National Rental Affordability Scheme.

The Government supports opportunities for not for profit housing providers to grow in addition to the National Rental Affordability Scheme. As these opportunities arise, the Government intends to work closely with not for profit housing providers.

She concludes:

The Government is committed to tackling the problem of housing affordability in Australia, particularly for low income earners who are most vulnerable in the current housing market. These issues are central to the new NAHA.

I quote her reply at length because I think it is probably not well known out there in the community that special initiatives and particular strategies will be encompassed by the National Rental Affordability Scheme to ensure that the not-for-profit sector can be involved in the provision of further housing.

As others have commented, the legislation provides that the details in the making of this new scheme will be by way of regulation. In this manner, the government will have the necessary flexibility to address changing circumstances, including a process for determining market rent, tenant eligibility criteria and reporting requirements for the scheme. As we know, the legislation provides that the secretary can issue a certificate in relation to a refundable tax offset or make payment directly if it is an endorsed charitable institution that is involved in the provision of affordable housing.

I want to say a few things about homelessness. Although it is not an issue directly taken up in the scope of the legislation before us tonight, it is one area among many which are being addressed by strategies, innovative ideas and commitments made by the Minister for Housing and the Prime Minister. In that regard, I do want to put on record my thanks to the Minister for Housing for coming to the Illawarra to address a roundtable discussion that we held with all the major service providers who provide services to homeless people in my electorate and in the member for Cunningham’s electorate. As I said in my introductory remarks, we know that more than 100,000 men, women and children are homeless on any one night in Australia. On the last count I saw, around 1,530 people in the Illawarra face homelessness on any given night. So it is a major issue locally. I want to commend the housing minister and the Prime Minister for their genuine commitment and desire to address this blight that exists in our country.

We have made a beginning with the downpayment of $150 million through the A Place to Call Home initiative, and I understand this will provide supported accommodation facilities based on the Common Ground housing model. According to recent press releases from the minister, she has launched such a program in Tasmania, and plans are underway in Victoria, South Australia and New South Wales—my own state. This is the first time a federal government has displayed a commitment to dealing with homelessness, and full marks to them for taking on this major challenge.

In that regard, I want to acknowledge the wonderful work of local organisations including Southern Youth and Family Services, the two women’s refuges, the men’s refuge at Coniston, the Women’s Housing Trust, Darcy House at Port Kembla and others who have been involved in ongoing discussions and have made submissions in response to the minister’s green paper on homelessness. Again, I think it has taken the election of the Rudd Labor government to deal with the issues of housing and rental affordability and with the legacy of homelessness in our affluent society in a compassionate and concerted way. I want to commend the government for its bold initiatives and innovative solutions. There are no silver bullets but I think we are seeing a government that is genuinely committed to addressing a major social problem.

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