1. Understanding the Australian Housing System NSW Disability Network Forum workshop Adina Hotel, Crown St Surry Hills 4 February, 2014

2.  Acknowledgement of the traditional owners of the land we meet on today  About Shelter NSW and what we do  Focus of discussion on the Australian housing system and how it works Introduction

3.  Today’s housing landscape is dominated by housing stress and an insufficient supply of affordable housing Central proposition

4.  To focus on some implications for your work as disability advocates through an examination of the housing system & the current crisis experienced by households on low incomes  To provide information and resources about the housing system and some of the drivers of housing policy Aim of today’s workshop

5. The workshop covers  What is the housing system and how does it work?  The phenomenon of housing stress and the need for affordable housing  Housing tenures  The role of governments  How housing policy is formed

6. Anglicare Australia, 2013, Rental Affordability Snapshot The Politics of Housing, Sarah Toohey, Campaign Manager, Australians for Affordable Housing, 2012 Renovating housing policy. Grattan Institute, Jane- Frances Kelly, October 2013 Recent reports & useful articles

7. “Living Independently…A Guide to the NDIS & Housing”, Bruce Bonyhady, Chair NDIA, HousingWORKS – Dec. 2013 New South Wales Auditor-General Report – Performance Audit ‘Making the best use of public housing’ 30 July, 2013 More reports & useful articles

8. True or false? Talk to the person you are sitting next to and consider the eight statements on housing – true or false Be ready to report back answers Quick quiz: housing myth or reality?

9. Tenure of all Australian households, Pie chart 2011

11. Wikimedia Commons

12. McKell Institute

13. 13 The meaning of home  The establishment of a home goes to the heart of what makes us human, and the bonds and connections which enable individuals to live life with dignity and contribute to the wellbeing of others.  The health of the wider community and the economy on which it depends, hinge on the continuing contribution of individuals. Without a home this contribution is not possible.

14. Housing is not only a place called home, but also an asset that accrues value – which impacts on all three tenure forms:  Homeownership: accrues homeowners’ wealth  Rental housing: accrues wealth for landlords  Social housing: comprises an asset that can be reconfigured by social housing providers to meet other needs Housing as a wealth-creating asset

15. Today’s housing landscape is dominated by housing stress and an insufficient supply of affordable housing:  A low-income or moderate-income household is in ‘housing stress’ if they pay more than 30% of their gross income on housing  Housing is generally considered to be ‘affordable’ if household members are not in ‘housing stress’ after they have paid for their housing (whether they are renting or buying) Major housing challenges in Australia

16. In Australia in 2009–10, there was a shortage of 539,000 private rental dwellings that were both affordable and available for renters with gross incomes in the bottom 40% of income distribution Insufficient supply is linked to:  high levels of housing stress: in 2009–10, 60% of lower-income rental households were in rental stress  low vacancy rates in private rental market: national vacancy rate for dwellings in the private housing market was 1.9% in January 2013.  homelessness: estimate of 105,237 homeless people on census night in 2011 — a 17.3% increase from 2006 Insufficient supply of affordable housing

17. Housing stress varies by tenure — in NSW in 2009–10:  62% of lower-income renter-households were in rental stress  54% of lower-income homeowner- households were in mortgage stress Housing stress by tenure

18. Housing stress — census night in 2011  95.3% of low-income renter-households are in rental stress  79.3% of low-income homeowner-households are in mortgage stress Affordable rental and purchase stock in September 2012  3% of rental stock is affordable for very low-income households  8% of rental stock is affordable for low-income households  0% of home purchase stock is affordable for very low-income households  0% of home purchase stock is affordable for low-income households Public housing stock — December 2012  8,695 dwellings Key housing data: Sydney LGA

19. Housing stress — census night in 2011  76% of low-income renter-households are in rental stress  58.8% of low-income homeowner-households are in mortgage stress Affordable rental and purchase stock in September 2012  16% of rental stock is affordable for very low-income households  45% of rental stock is affordable for low-income households  0% of home purchase stock is affordable for very low-income households  5% of home purchase stock is affordable for low-income households Public housing stock — December 2012  6,440 dwellings Key housing data: Wollongong LGA

20. Housing stress — census night in 2011  71% of low-income renter-households are in rental stress  62.5% of low-income homeowner-households are in mortgage stress Affordable rental and purchase stock in September 2012  5% of rental stock is affordable for very low-income households  30% of rental stock is affordable for low-income households  0% of home purchase stock is affordable for very low-income households  8% of home purchase stock is affordable for low-income households Public housing stock — December 2012  6,083 dwellings Key housing data: Campbelltown LGA

21. include:  The stock — that is, the type of housing  The condition of the stock and where it is located  How housing is allocated  The kinds of tenure (for example, homeownership, social housing and private rental) Components of a housing system

22. The housing system The way housing is organised is called a housing system. It is a combination of:  how housing markets work (how housing is produced, distributed and consumed — the markets are shaped by demand and supply) and  how governments intervene to correct imbalances in the markets

23. The way the housing system develops depends on: History Values Politics Economics Traditions

24. Recognise the existence and effects of competing paradigms:  Neoliberalism – small government, reliance on the logic of the market, individual effort and freedom, valorisation of continued growth, deregulation  Social justice – welfare or interventionist state, regulation of economy around work & job creation, mandated provisions of social security for individuals on low incomes, collective responsibility, social inclusion, human rights A contest of ideas or paradigms

25. Anglicare Australia – Rental Affordability Snapshot 2013: ‘Policy interventions must address housing inequality forcefully and with out hesitation. Along with income, affordable housing is one of the few issues that genuinely crosses all sectors and population groups within Australia. Like NDIS or Gonski, this is an issue that will take genuine intervention from governments, business and society as a whole. Action for change must be lead and as such it is the Federal Government which must make a commitment to intervention.’ Social justice - policy goals

26. 26 Policies are based on values and philosophies Often we accept those values without questioning them

27. Three government policy directions  Market orientation: individual freedom, consumer choice, self-help, entrepreneurialism  Welfare/citizenship: community, common interest, social partnership, universal entitlement  Mixed model: targeted welfare delivery, safety net, some universal services, the market will deliver

28. Homeownership The Great Australian Dream  2 barriers for low-income households becoming homeowners: high entry costs, plus the challenge of meeting recurrent costs  House price inflation is socially divisive  Price inflation of houses: it is not just about the value of the land

29. Homeownership In 2011, 66% of NSW households were homeowners:  33% were owners without a mortgage: 820,004 households  33% were owners with a mortgage: 824,295 households

30. Private rental housing Privately-owned housing which an owner rents out to someone else

31. Private rental housing In 2011, 18% of NSW households were in the private rental market: 430,134 households

32. Challenges facing low-income households in the private rental market include:  Expensive  Low vacancy rates  Insecure  Discrimination Private rental

33. Social housing In 2012, there were 141,303 households in social housing in NSW:  111,087 households in public housing dwellings  25,844 in community housing dwellings  4,372 Aboriginal Housing Office dwellings (state-owned and managed Aboriginal housing)

34. Trends in social housing: Residualisation  Significant decline in social housing funding between 1996 and 2008: if social housing dwellings as proportion of total housing supply had been maintained at 1996 level, there would have been additional 90,000 dwellings in 2008  Increased allocations to those in greatest need  Many low-income households are no longer eligible for social housing Social housing

35. Public housing  Housing that is owned and managed by government and rented to eligible households

36. Public housing in NSW:  Dwellings (2012): 112,310  Occupied dwellings (2012): 111,087  Households paying less than market rent (2012): 101,148  New households assisted (2012): 6,505  Applicants on waiting list (2012): 52,986  ‘Greatest need’ allocations as proportion of all new allocations (2011–2012): 65.6%— compared to 38.9% in 2007–08 Public housing

37. Community housing  Housing managed by non-profit non- government landlords  Aboriginal housing organizations are not usually included

38. Community housing in NSW:  Dwellings (2012): 25,311  New households assisted (2012): 4,021  ‘Greatest need’ allocations as proportion of all new allocations (2011–2012): 69.7%— compared to 69.7% in 2007-08 Community housing

39. Aboriginal housing Housing targeted to Aboriginal people that is owned or managed by Aboriginal organizations, including:  state-owned and managed Aboriginal housing (NSW Aboriginal Housing Office)  Aboriginal community organizations (such as Aboriginal land councils)

40. Aboriginal housing NSW Aboriginal Housing Office:  Dwellings (2012): 4,478  Occupied dwellings (2012): 4,372  Households paying less than market rent (2012): 2,854  New households assisted (2011–12): 418  Applicants on waiting list (2012): 2,200  ‘Greatest need’ allocations as proportion of all new allocations (2011–2012): 31.0%— compared to 12.9% in (2007–08)

41. Aboriginal community housing organisations in NSW:  Permanent dwellings (2011): 4,716  Occupied permanent dwellings (2011): 2,125  Aboriginal community housing organizations (2011): 206  Currently funded/actively registered Aboriginal community housing organizations (2011): 97 Aboriginal housing

42. Supply of money — interest rates Taxation and expenditure  Taxes, e.g. goods and services tax  Tax expenditures (tax concessions and exemptions become ‘foregone revenue’, e.g. exemption from capital gains tax of family home)  Direct expenditures, e.g. National Rental Affordability Scheme, National Affordable Housing Specific Purpose Payment Regulation  Legislation, e.g. trade practices law, privacy law  Subordinate legislation (‘regulations’)  Mandatory codes of practice Government interventions – federal

43. Taxation and expenditure  Taxes, e.g. land tax, conveyancing transfer duty on house sales  Tax expenditures, e.g. exemption from transfer duty for first homeowners  Direct expenditures, e.g. Tenants Advice and Advocacy Program Regulatory interventions  Environmental planning policies and instruments  Tenancy protection laws  Boarding house regulation Government interventions – state

44. Taxation and expenditure  Taxes, eg. rates, developer contributions for affordable housing  Direct expenditures, eg. in-kind support to community-based housing providers Regulatory interventions  Zoning  Development controls Government interventions – local

45. Join us! Become a member, connect with us on Facebook and subscribe to our Shelter NSW eBulletin www.shelternsw.org.au Tel: (02) 9267 5733 Paula Rix, Senior Policy Officer (Education and Outreach): paula@shelternsw.org.au Shelter NSW Working for a fair and just housing system

46.  Shelter NSW would appreciate your feedback on this workshop.  Please leave your completed evaluation in the box or folder marked ‘evaluations’ before you leave. Evaluation

47.  Australians for affordable housing, Homelessness Australia, National Shelter and ACOSS have policy goals to address the constraints discussed today:  Increase Commonwealth Rent Assistance (CRA) by 30%  Increase Newstart Allowance  Commitment from state & territory govt’s to extend National Partnership Agreement on Homelessness beyond 2013  Adequate/ guarantee funding for homelessness programs  Tax and regulatory reform Possible Solutions

48. Commonwealth funding for housing assistance is mainly under the National Affordable Housing Agreement covers  public rental housing  State-owned and managed Aboriginal housing  Community housing  Home purchase assistance  Private rental assistance  Former Crisis Accommodation Program  Specialist homelessness services (NAHA replaced CSHA in 2009, and includes a number of housing sector reforms) Commonwealth housing assistance

49. Affordability:  National Housing Supply Council – closed Nov 2013  Housing Affordability Fund  First Home Savers Accounts Affordable Housing:  National Rental Affordability Scheme (NRAS) Homelessness:  National Partnership on Homelessness Aboriginal housing  National Partnership on Remote Indigenous Housing Commonwealth housing and homelessness initiatives

50. National Rental Affordability Scheme  Tax-free incentives for development of new affordable rental housing — $6,000 from Commonwealth and $2,000 from state government per dwelling, for each of 10 years  Dwellings are targeted to low and moderate-income households  Rents are set at below-market rates  Aim to add 50,000 dwellings to affordable rental housing supply Commonwealth housing initiatives on affordable housing

51. Homelessness National Partnership  Funding for new initiatives addressing homelessness to implement Commonwealth Government’s white paper, The road home  National Partnership was to expire on 30 June 2013, but there is a 12–month extension, plus a future agreement is currently being negotiated Commonwealth housing initiatives on homelessness

52. National Indigenous Reform Agreement (Closing the Gap)  An agreement between Commonwealth, and state and territory governments to ‘close the gap’ in Aboriginal disadvantage  Its building blocks to ‘close the gap’ include healthy homes  Commenced in 2008 National Partnership on Remote Indigenous Housing  Commonwealth funding of $1.94 billion over 10 years for construction of up to 4,200 new dwellings, and upgrades of up to 4,800 existing dwellings, focused on rural and remote Aboriginal communities  Commenced in 2008 and revised in 2010 Commonwealth housing initiatives on Aboriginal housing

53.  Boarding houses — Boarding Houses Act 2012 partly commenced on 1 January 2013 (introducing boarding house register), plus occupancy rights scheme still to commence  Specialist homelessness services — sector reform (Going Home Staying Home) in progress, to commence by July 2014  Planning system — review of land‐use planning and development‐assessment system in progress  State Environmental Planning Policy (Affordable Rental Housing) 2009 NSW housing and homelessness initiatives