Part 2: Payments for Specific Purposes (Continued)
Affordable housing
In 2011‑12, the Commonwealth will provide funding of $2.1 billion to support state housing services.
Table 2.7 provides information on payments to support state affordable housing services.
Table 2.7: Payments to support state affordable housing services
National Affordable Housing Agreement
The National Affordable Housing Agreement commits the Commonwealth and the States 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 reforms 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 is providing a financial contribution to support services in the housing sector.
This funding is being 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.
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 1.70 per cent in 2011‑12.
National Partnership payments for affordable housing
Building Better Regional Cities(a)
- State allocations have not been finalised for this measure.
The Building Better Regional Cities program is a $100 million commitment by the Commonwealth to invest in local housing infrastructure projects that will help build more affordable homes in high growth regional cities over the next three years.
National Partnership on the East Kimberley development package — social
and transitional housing projects
The Commonwealth is providing funding to Western Australia for Indigenous housing projects as part of the National Partnership on 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, particularly 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 section of this Part.
National Partnership on the First Home Owners Boost
As part of the Economic Security Strategy, announced on 14 October 2008, the Commonwealth 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 Commonwealth 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. Eligibility for the First Home Owners Boost has now ceased.
The continuation of the First Home Owners Boost payment in 2011‑12 and 2012‑13 reflects the 12 month application period and the timeframes allowed for the construction of new homes.
National Partnership on homelessness
The Commonwealth is providing funding for the National Partnership on homelessness. This National Partnership includes the A Place to Call Home initiative, a joint initiative by the Commonwealth and the States 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 to 2012‑13, with the States matching this funding.
This National Partnership represents a significant first step to reduce homelessness by 20 per cent by 2013 and 50 per cent by 2020. This National Partnership focuses on three key strategies to reduce homelessness:
- prevention and early intervention to stop people becoming homeless;
- breaking the cycle of homelessness; and
- improving and expanding the service response to homelessness.
There are over 190 new and expanded activities being undertaken across the States to reduce homelessness under this National Partnership.
National Partnership on the Nation Building and Jobs Plan — social housing
— second stage construction
The Commonwealth is providing funding for second stage construction under the National Partnership on the Nation Building and Jobs Plan — social housing. This National Partnership was established to provide economic stimulus by increasing the supply of social housing through new construction, and contributing to reduced homelessness and improved outcomes for the homeless and Indigenous Australians. Funding ceases in 2011‑12.
National Partnership on remote Indigenous housing
The Commonwealth is providing funding for the National Partnership on remote Indigenous housing. This National Partnership was established 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.
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