Part 2: Payments for Specific Purposes (continued)
Affordable housing
In 2015‑16, the Commonwealth will provide funding of $1.9 billion to support state affordable housing services, including $1.3 billion through the National Affordable Housing SPP and $534.1 million through National Partnerships, as detailed in Table 2.8.
| $million | 2014‑15 | 2015‑16 | 2016‑17 | 2017‑18 | 2018‑19 |
|---|---|---|---|---|---|
| National Affordable Housing SPP | 1,305.8 | 1,324.1 | 1,345.2 | 1,366.8 | 1,388.6 |
| National Partnership payments | |||||
| First Home Owners Boost | ‑0.6 | ‑ | ‑ | ‑ | ‑ |
| Homelessness | 126.7 | 115.0 | 115.0 | ‑ | ‑ |
| Northern Territory remote Aboriginal investment Remote Australia strategies | ‑ | 56.0 | 49.7 | 50.9 | 3.6 |
| Remote Indigenous housing | 485.6 | 363.1 | 406.5 | 361.9 | ‑ |
| Stronger Futures in the Northern Territory Housing | 55.9 | ‑ | ‑ | ‑ | ‑ |
| Total | 1,973.3 | 1,858.1 | 1,916.5 | 1,779.5 | 1,392.2 |
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 |
|---|---|---|---|---|---|---|---|---|---|
| 2014‑15 | 417.8 | 325.0 | 262.5 | 143.7 | 93.3 | 28.4 | 21.4 | 13.6 | 1,305.8 |
| 2015‑16 | 422.2 | 329.9 | 266.4 | 147.6 | 93.9 | 28.4 | 21.7 | 13.8 | 1,324.1 |
| 2016‑17 | 427.6 | 335.4 | 271.0 | 152.0 | 94.7 | 28.5 | 22.0 | 14.1 | 1,345.2 |
| 2017‑18 | 433.0 | 341.1 | 275.5 | 156.4 | 95.5 | 28.5 | 22.4 | 14.4 | 1,366.8 |
| 2018‑19 | 438.5 | 346.8 | 280.2 | 160.9 | 96.3 | 28.6 | 22.7 | 14.6 | 1,388.6 |
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 defines 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 1.40 per cent in 2015‑16.
National Partnership payments for affordable housing
In addition to the National Affordable Housing SPP funding, the Commonwealth will provide a total of $534.1 million in 2015‑16 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 |
|---|---|---|---|---|---|---|---|---|---|
| 2014‑15 | .. | ‑0.4 | .. | .. | ‑0.2 | .. | .. | ‑ | ‑0.6 |
| 2015‑16 | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ |
| 2016‑17 | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ |
| 2017‑18 | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ |
| 2018‑19 | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ |
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 2014‑15 reflects extensions granted to applicants in exceptional circumstances by the states and territories. 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 |
|---|---|---|---|---|---|---|---|---|---|
| 2014‑15 | 35.7 | 22.8 | 34.1 | 15.0 | 8.9 | 3.4 | 1.5 | 5.3 | 126.7 |
| 2015‑16 | 30.0 | 22.8 | 28.7 | 15.0 | 8.9 | 2.8 | 1.5 | 5.3 | 115.0 |
| 2016‑17 | 30.0 | 22.8 | 28.7 | 15.0 | 8.9 | 2.8 | 1.5 | 5.3 | 115.0 |
| 2017‑18 | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ |
| 2018‑19 | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ |
(a) Funding for 2014‑15 includes $11.7 million which relates to 2013‑14 activity.
The Commonwealth is providing funding for the National Partnership on homelessness. The agreement will prioritise funding to frontline homelessness services, focusing on women and children experiencing domestic violence, and homeless youth under 18 years of age.
A new National Partnership for 2015‑16 and 2016‑17 is being negotiated with the states. This agreement will ensure critical frontline services are maintained. Longer‑term funding arrangements and the respective roles of the Commonwealth, state and territory governments will be considered in the context of the Government's Reform of the Federation White Paper.
A spending measure associated with this National Partnership is discussed in Budget Paper No. 2, Budget Measures 2015‑16.
National Partnership on Northern Territory remote Aboriginal investment
The Commonwealth will provide funding for the National Partnership on Northern Territory remote Aboriginal investment. This continues the Commonwealth's investment in the Northern Territory to address Indigenous disadvantage.
The National Partnership will support action in the Northern Territory to further the Commonwealth's priorities for Indigenous affairs: to get children to school, adults into jobs and make communities safer. The National Partnership simplifies and streamlines arrangements, and will decrease Commonwealth intervention in areas where the Northern Territory has primary responsibility.
This National Partnership is discussed further in the Community Services, Education and Health sections of this Part.
Funding for this National Partnership is a new spending measure in the 2015‑16 Budget. This measure is discussed in Budget Paper No. 2, Budget Measures 2015‑16.
| $million | NSW | VIC | QLD | WA | SA | TAS | ACT | NT | Total |
|---|---|---|---|---|---|---|---|---|---|
| 2014‑15 | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ |
| 2015‑16 | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ | 56.0 | 56.0 |
| 2016‑17 | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ | 49.7 | 49.7 |
| 2017‑18 | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ | 50.9 | 50.9 |
| 2018‑19 | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ | 3.6 | 3.6 |
The Commonwealth will provide funding to improve public housing in remote communities by undertaking housing works and removing asbestos. Housing works under this component will include new houses, refurbishments, upgrades and housing related infrastructure. The funding will also provide a sustainable Aboriginal interpreter services model with a user—pay component.
This funding will complement the funding to be provided under the National Partnership on remote Indigenous housing.
| $million | NSW | VIC | QLD | WA | SA | TAS | ACT | NT | Total |
|---|---|---|---|---|---|---|---|---|---|
| 2014‑15 | 60.7 | 2.5 | 155.6 | 165.6 | 27.8 | 2.5 | ‑ | 71.0 | 485.6 |
| 2015‑16 | ~ | ‑ | ~ | ~ | ~ | ‑ | ‑ | ~ | 363.1 |
| 2016‑17 | ~ | ‑ | ~ | ~ | ~ | ‑ | ‑ | ~ | 406.5 |
| 2017‑18 | ~ | ‑ | ~ | ~ | ~ | ‑ | ‑ | ~ | 361.9 |
| 2018‑19 | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ |
(a) State allocations for 2015‑16, 2016‑17 and 2017‑18 have not yet been determined.
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.
The Commonwealth will renegotiate this National Partnership to facilitate the delivery of new housing, housing‑related infrastructure and refurbishments. It will also provide incentives to states for progress against agreed outcomes which establish more sustainable housing systems in remote Indigenous communities.
The measure taken in the 2015‑16 Budget as part of this programme is discussed in Budget Paper No. 2, Budget Measures 2015‑16.
National Partnership on Stronger Futures in the Northern Territory
The Commonwealth is providing funding for the National Partnership on Stronger Futures in the Northern Territory.
This National Partnership is discussed further in the Community Services, Education and Health sections of this Part.
The measure taken in the 2015‑16 Budget as part of this programme is discussed in Budget Paper No. 2, Budget Measures 2015‑16. Part of this measure involves the replacement of the National Partnership on Stronger Futures in the Northern Territory with the National Partnership on Northern Territory remote Aboriginal investment from 2015‑16.
| $million | NSW | VIC | QLD | WA | SA | TAS | ACT | NT | Total |
|---|---|---|---|---|---|---|---|---|---|
| 2014‑15 | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ | 55.9 | 55.9 |
| 2015‑16 | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ |
| 2016‑17 | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ |
| 2017‑18 | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ |
| 2018‑19 | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ |
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 provided under the National Partnership on remote Indigenous housing.