Part 2: Payments for Specific Purposes (Continued)
Affordable housing
In 2010‑11, the States will receive $3.2 billion in payments from the Commonwealth to support state housing services. The reduction in 2010‑11 reflects the gradual withdrawal of economic stimulus.
Table 2.6 provides information on all the payments to support state affordable housing services.
Table 2.6: Payments to support state affordable housing services
National Affordable Housing Agreement
Through the National Affordable Housing Agreement, the Commonwealth and the States have committed to the objective that all Australians have access to affordable, safe and sustainable housing which will assist them to participate in the labour force and more broadly in the community.
The Commonwealth and the States have also committed to reform directions that will enhance housing programs and services, including by improving the:
- integration of homelessness services and other mainstream services, such as employment services;
- operational efficiency of public housing and the employment outcomes of public housing tenants; and
- efficiency in the supply of housing through planning reforms.
National Affordable Housing SPP
The National Affordable Housing SPP is the funding associated with the National Affordable Housing Agreement. The Commonwealth will provide $6.2 billion over five years from 2009‑10 to the States as a financial contribution to support state services in the housing sector.
This funding will be used to support a range of measures including social housing, assistance to people in the private rental market, support and accommodation for people who are homeless or at risk of homelessness, and home purchase assistance.
Table 2.6.1: National Affordable Housing SPP funding
Growth factor
The Intergovernmental Agreement outlines the agreed growth factor for the National Affordable Housing SPP. The growth factor is the Wage Cost Index 1, comprising a safety net wage adjustment weighted by 75 per cent and the all‑groups Consumer Price Index weighted by 25 per cent.
The growth factor is currently estimated to be 1.6 per cent in 2010‑11.
National Partnership payments for affordable housing
National Partnership on the First Home Owners Boost
As part of the Economic Security Strategy, announced on 14 October 2008, the Government introduced the First Home Owners Boost to stimulate housing activity, support the construction industry and assist first home buyers to enter the housing market. In response to continued economic uncertainty, the Government extended the First Home Owners Boost for an additional six months, with the value of grants halving for the three months to 31 December 2009. The continuation of the First Home Owners Boost payment in 2010‑11 and 2011‑12 reflects the timeframes allowed for the construction of new homes and the 12 month application period.
Table 2.6.2: Estimated payments to the States for the National Partnership
on the First Home Owners Boost
National Partnership on homelessness
The Commonwealth will provide $517.3 million over four years from 2009‑10 under the National Partnership on homelessness with the States matching this funding. The National Partnership includes the A Place to Call Home initiative, a joint initiative by the Commonwealth and State governments to build 600 new homes for individuals and families experiencing homelessness. The Commonwealth contribution to the A Place to Call Home initiative is $150 million over five years (2008‑09 to 2012‑13), with States matching this funding.
Table 2.6.3: Estimated payments to the States for the National Partnership
on homelessness
National Partnership on the Nation Building and Jobs Plan — Social Housing
The Commonwealth will provide $1.3 billion to the States in 2010‑11 to invest in additional public and community housing to meet priority social housing needs, including reducing homelessness.
Table 2.6.4: Estimated payments to the States for the National Partnership
on the Nation Building and Jobs Plan — social housing — first‑stage
construction(a)
- The cash payment in 2009‑10 for the National Partnership on the Nation Building and Jobs Plan — social housing — first‑stage construction is $632 million, of which $86.5 million was recorded as an accrual in 2008‑09.
Table 2.6.5: Estimated payments to the States for the National Partnership
on the Nation Building and Jobs Plan — social housing — second‑stage
construction(a)
- The cash payment in 2009‑10 for the National Partnership on the Nation Building and Jobs Plan — social housing — second‑stage construction is $3,090 million, of which $54 million was recorded as an accrual in 2008‑09.
Table 2.6.6: Estimated payments to the States for the National Partnership
on the Nation Building and Jobs Plan — social housing — repairs and
maintenance(a)
- The cash payment in 2009‑10 for the National Partnership on the Nation Building and Jobs Plan — social housing — repairs and maintenance is $200 million, of which $13.3 million was recorded as an accrual in 2008‑09.
National Partnership on remote Indigenous housing
The National Partnership on remote Indigenous housing aims to facilitate significant reform in the provision of housing for Indigenous people in remote communities and to address overcrowding, homelessness, poor housing conditions and severe housing shortages.
Table 2.6.7: Estimated payments to the States for the National Partnership
on remote Indigenous housing(a)
- Capital works funding from 1 July 2010 will be subject to a competitive bid process and actual payments to jurisdictions may vary from the estimated payments listed above.
National Partnership on social housing
The Commonwealth provided $400 million over two years in 2008‑09 and 2009‑10 under the National Partnership on social housing. The National Partnership provided for the establishment of a social housing growth fund which contributed capital funding to the States, to support a range of projects to increase the supply of social housing and enable more disadvantaged households to access safe and secure housing that meets their needs. Around 1,900 dwellings will be completed by 30 June 2011.
Table 2.6.8: Estimated payments to the States for the National Partnership
on social housing
National Partnership on the social housing subsidy program
The Commonwealth had committed to provide around $2 million each year to New South Wales until 30 June 2016, to expand housing options for low‑to moderate‑income earners as part of the social housing subsidy program. The Commonwealth has met its future payment commitments to New South Wales under this program by providing a single payment in 2009‑10 and ceasing future annual payments.
The program subsidises recurrent costs of financing rental accommodation in the private and non‑government sectors for low‑ to moderate‑income earners.
Table 2.6.9: Estimated payments to the States for the National Partnership
on the social housing subsidy program
National Partnership on the East Kimberley development package — Indigenous housing projects
The Commonwealth will provide $50 million to Western Australia for Indigenous housing projects from the East Kimberley development package. Investment priorities under the package focus on improving the provision of social and transition housing, where noticeable gaps exist in the region. Improved housing outcomes for Indigenous people will provide the foundation for lasting improvements in living standards, social and economic wellbeing and access to life opportunities, such as employment and education.
The East Kimberley development package as a whole is described in the infrastructure services section.
Table 2.6.10: Estimated payments to the States for the National Partnership
on the East Kimberley development package — Indigenous housing projects
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