Affordable housing

In 2016‑17, 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 $593.2 million through National Partnerships, as detailed in Table 2.8.

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 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
• efficiency in the supply of housing through planning reforms.

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.

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 estimated to be 1.40 per cent in 2016‑17.

National Partnership payments for affordable housing

In addition to the National Affordable Housing SPP funding, the Commonwealth will provide a total of $593.2 million in 2016‑17 through National Partnerships to support State affordable housing services. Further details on these National Partnerships are provided below.

The Commonwealth introduced the First Home Owners Boost in 2008 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 2015‑16 reflects extensions granted by the States to applicants in exceptional circumstances. 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.

The Commonwealth is providing funding for the National Partnership on homelessness. The National Partnership prioritises funding to frontline homelessness services, focusing on women and children experiencing domestic violence, and homeless youth under 18 years of age.

National Partnership on Northern Territory remote Aboriginal investment

The Commonwealth is providing funding for the National Partnership on Northern Territory remote Aboriginal investment. This continues the Commonwealth's investment under the National Partnership on Stronger Futures in the Northern Territory to address Indigenous disadvantage.

The National Partnership will support the Northern Territory in taking practical action to improve the lives of Aboriginal people through activities and services to improve outcomes in schooling, community safety, health and housing, and create job opportunities for adults.

This National Partnership is discussed further in the Health, Education and Community Services sections of this Part.

The Commonwealth will provide funding to improve public housing in remote communities by investing in housing works including upgrades, new houses or housing related infrastructure. This component will also fund the removal of asbestos from community buildings in remote communities and a sustainable, professional and accredited Aboriginal interpreter service.

This funding complements the funding to be provided under the National Partnership on remote Indigenous housing.

The Commonwealth is providing funding for the National Partnership on remote Indigenous housing. This National Partnership facilitates significant reform in the provision of housing for Indigenous people in remote communities and addresses overcrowding, homelessness, poor housing conditions and severe housing shortages.

From 1 July 2016, the National Partnership on remote Indigenous housing will be replaced with the National Partnership on remote housing. The new National Partnership will facilitate the delivery of housing upgrades, new houses and housing‑related infrastructure. It will also provide incentives to States for progress against agreed outcomes which establish more sustainable housing systems in remote Indigenous communities.

The Commonwealth will also provide funding in 2015‑16 to assist New South Wales to continue to deliver on its responsibility for remote housing.