Part 2: Payments for Specific Purposes (continued)
Affordable housing
In 2014‑15, the Commonwealth will provide funding of $2.0 billion to support state affordable housing services, including $1.3 billion through the National Affordable Housing SPP and $656 million through National Partnerships, as detailed in Table 2.8.
| $million | 2013‑14 | 2014‑15 | 2015‑16 | 2016‑17 | 2017‑18 |
|---|---|---|---|---|---|
| National Affordable Housing SPP | 1,282.7 | 1,305.8 | 1,328.0 | 1,351.9 | 1,376.2 |
| National Partnership payments | |||||
| Building Better Regional Cities | 48.7 | - | - | - | - |
| First Home Owners Boost | 0.4 | - | - | - | - |
| Homelessness | 154.9 | 115.0 | - | - | - |
| Remote Indigenous Housing | 541.1 | 485.6 | 368.2 | 411.7 | 447.6 |
| Stronger Futures in the Northern Territory Housing | 51.2 | 55.9 | 52.3 | 46.2 | 47.4 |
| Total | 2,079.0 | 1,962.2 | 1,748.4 | 1,809.8 | 1,871.3 |
| Memorandum item — payments direct to local governments included in payments above | |||||
| Building Better Regional Cities | 48.7 | - | - | - | - |
| Total | 48.7 | - | - | - | - |
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 committed to reforms that will enhance housing programmes and services, including by improving:
- the integration of homelessness services and other mainstream services, such as employment services;
- the operational efficiency of public housing and the employment outcomes of public housing tenants; and
- the efficiency in the supply of housing through planning reforms.
| $million | NSW | VIC | QLD | WA | SA | TAS | ACT | NT | Total |
|---|---|---|---|---|---|---|---|---|---|
| 2013‑14 | 409.4 | 311.5 | 256.6 | 139.0 | 94.0 | 30.0 | 22.5 | 19.6 | 1,282.7 |
| 2014‑15 | 416.2 | 324.4 | 263.4 | 145.1 | 93.2 | 28.3 | 21.5 | 13.5 | 1,305.8 |
| 2015‑16 | 421.6 | 330.1 | 268.4 | 149.8 | 94.0 | 28.4 | 21.9 | 13.8 | 1,328.0 |
| 2016‑17 | 427.6 | 336.2 | 273.8 | 154.6 | 95.0 | 28.4 | 22.3 | 14.0 | 1,351.9 |
| 2017‑18 | 433.6 | 342.3 | 279.3 | 159.6 | 96.0 | 28.5 | 22.7 | 14.2 | 1,376.2 |
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 for the National Affordable Housing SPP is currently estimated to be 1.80 per cent in 2014‑15.
National Partnership payments for affordable housing
In addition to the National Affordable Housing SPP funding, the Commonwealth will provide a total of $656 million in 2014‑15 through National Partnerships to support state affordable housing services. Further details on these National Partnerships are provided below.
| $million | NSW | VIC | QLD | WA | SA | TAS | ACT | NT | Total |
|---|---|---|---|---|---|---|---|---|---|
| 2013‑14 | 40.6 | 2.2 | 3.5 | 2.4 | - | - | - | - | 48.7 |
| 2014‑15 | - | - | - | - | - | - | - | - | - |
| 2015‑16 | - | - | - | - | - | - | - | - | - |
| 2016‑17 | - | - | - | - | - | - | - | - | - |
| 2017‑18 | - | - | - | - | - | - | - | - | - |
(a) All payments are made direct to local governments.
The Building Better Regional Cities programme is a commitment by the Commonwealth to invest in local housing infrastructure projects that are helping build more affordable homes in high growth regional cities.
| $million | NSW | VIC | QLD | WA | SA | TAS | ACT | NT | Total |
|---|---|---|---|---|---|---|---|---|---|
| 2013‑14 | 0.6 | 0.2 | .. | -0.2 | -0.2 | - | - | .. | 0.4 |
| 2014‑15 | - | - | - | - | - | - | - | - | - |
| 2015‑16 | - | - | - | - | - | - | - | - | - |
| 2016‑17 | - | - | - | - | - | - | - | - | - |
| 2017‑18 | - | - | - | - | - | - | - | - | - |
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. The availability of the First Home Owners Boost ceased in December 2009.
The continuation of the First Home Owners Boost payment in 2013‑14 reflects the final application period and the timeframes allowed for the construction of new homes. Negative expenditure for some States reflects an estimate of funds recovered from applicants later found to be ineligible; these funds were returned to the Commonwealth.
| $million | NSW | VIC | QLD | WA | SA | TAS | ACT | NT | Total |
|---|---|---|---|---|---|---|---|---|---|
| 2013‑14 | 38.7 | 30.1 | 36.8 | 18.7 | 15.4 | 4.6 | 5.5 | 5.2 | 154.9 |
| 2014‑15 | 30.0 | 22.8 | 28.7 | 15.0 | 8.9 | 2.8 | 1.5 | 5.3 | 115.0 |
| 2015‑16 | - | - | - | - | - | - | - | - | - |
| 2016‑17 | - | - | - | - | - | - | - | - | - |
| 2017‑18 | - | - | - | - | - | - | - | - | - |
(a) Under this National Partnership, States are required to match Commonwealth funding.
The Commonwealth is providing funding for the National Partnership on homelessness. The agreement 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.
A new National Partnership is being negotiated with the States for 2014‑15. This agreement will reinstate service delivery funding for another year, providing much needed certainty for homelessness services. The Commonwealth will work closely with the States on future funding arrangements and a longer term solution for homelessness.
A spending measure associated with this National Partnership is discussed in Budget Paper No. 2, Budget Measures 2014‑15.
| $million | NSW | VIC | QLD | WA | SA | TAS | ACT | NT | Total |
|---|---|---|---|---|---|---|---|---|---|
| 2013‑14 | 44.8 | 2.5 | 177.5 | 191.3 | 36.4 | 2.9 | - | 85.7 | 541.1 |
| 2014‑15 | 60.7 | 2.5 | 155.6 | 165.6 | 27.8 | 2.5 | - | 71.0 | 485.6 |
| 2015‑16 | 16.3 | 2.5 | 137.3 | 124.3 | 18.7 | 2.5 | - | 66.6 | 368.2 |
| 2016‑17 | 15.5 | 2.5 | 128.3 | 97.4 | 14.4 | 2.7 | - | 151.0 | 411.7 |
| 2017‑18 | 19.6 | 2.5 | 138.6 | 106.2 | 15.7 | 2.8 | - | 162.3 | 447.6 |
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.
National Partnership on Stronger Futures in the Northern Territory
The Commonwealth is providing funding to the Northern Territory Government through the National Partnership on Stronger Futures in the Northern Territory.
The Stronger Futures in the Northern Territory initiative is described further in the Community Services section of this Part.
| $million | NSW | VIC | QLD | WA | SA | TAS | ACT | NT | Total |
|---|---|---|---|---|---|---|---|---|---|
| 2013‑14 | - | - | - | - | - | - | - | 51.2 | 51.2 |
| 2014‑15 | - | - | - | - | - | - | - | 55.9 | 55.9 |
| 2015‑16 | - | - | - | - | - | - | - | 52.3 | 52.3 |
| 2016‑17 | - | - | - | - | - | - | - | 46.2 | 46.2 |
| 2017‑18 | - | - | - | - | - | - | - | 47.4 | 47.4 |
The Commonwealth is supporting the provision of safe and healthy houses for Indigenous Australians. This includes funding towards asbestos removal in homes and other buildings.
This funding complements the funding being provided under the National Partnership on Remote Indigenous Housing.