IMPLEMENTING THE NATIONAL HOUSING REFORMS
_________________________________________________________________
A PROGRESS REPORT TO
THE COUNCIL OF AUSTRALIAN GOVERNMENTS
FROM COMMONWEALTH, STATE AND
TERRITORY HOUSING MINISTERS
_________________________________________________________________
NOVEMBER 2009
Published by the Victorian Government Department of Human Services
Melbourne, Victoria on behalf of the Housing Ministers’ Conference
The function of the Housing Ministers' Conference (HMC) is to provide a forum for the formulation of nationally
consistent policies on welfare and low income housing issues. Members include Ministers with primary
responsibility for social housing portfolios in the Australian and State and Territory Governments, the New
Zealand Housing Minister and the President of the Australian Local Government Association (ALGA).
Representatives from the Australian Institute of Health and Welfare (AIHW) and the Australian Housing and
Urban Research Institute (AHURI) have observer status.
This report may be downloaded from www.coag.gov.au
© Copyright State of Victoria 2009
This publication is copyright, no part may be reproduced by any process except in accordance with the
provisions of the Copyright Act 1968.
Authorised by the Department of Human Services
50 Lonsdale Street, Melbourne, Victoria 3000
Table of Contents
Foreword
4
Executive Summary
5
1. The Housing and Homelessness Agreements
1.1 The National Affordable Housing Agreement
1.2 The National Partnership Agreements
1.3 The Nation Building and Jobs Plan Social Housing Initiative
9
9
9
12
2. A new era in affordable housing
2.1 The need for reform
2.2 Housing demand and supply
2.3 The Housing and Homelessness Reform Framework
14
14
15
17
3. Planning reforms
3.1 What are we trying to achieve from these reforms?
3.2 Utilising government land supply and other interventions
3.3 Anticipated supply shortfalls
19
19
20
21
4. Housing System Reform
4.1 What are we trying to achieve from these reforms?
4.2 Options for the Commonwealth payment of funding for social housing
4.3 A community housing industry development strategy
4.4 Enhancing the growth of the community housing sector
4.5 A national regulatory system for community housing providers
4.6 Prudential supervision
4.7 Leveraging investment
4.8 Small and medium businesses
23
23
23
24
25
27
28
28
29
5. Improved client choice and mobility
5.1 What are we trying to achieve from these reforms?
5.2 Integration of waiting lists
5.3 Shared equity
5.4 Seamless transitions to private rental and home ownership
5.5 Creating incentives for public housing tenants to take up work opportunities
5.6 Improved portability for public housing tenants
30
30
30
31
32
34
35
6. Stronger communities and tenancy management
6.1 What are we trying to achieve from these reforms?
6.2 Reducing concentrations of social disadvantage
6.3 Location of social housing stock
6.4 Rent setting and allocation policies
6.5 Compulsory rent deductions
6.6 Tenancy management plans for inappropriate behaviours
37
37
37
39
39
40
41
7. Homelessness reforms
7.1 What are we trying to achieve from these reforms?
7.2 Integration of homelessness services with mainstream services
7.3 Homelessness - supporting quality services
7.4 Homelessness - data collection and management
7.5 Workforce development strategy
43
43
43
44
45
45
8. Indigenous housing reforms
8.1 What are we trying to achieve from these reforms?
8.2 Indigenous access to mainstream housing and home ownership
8.3 Indigenous municipal services
47
47
47
49
9. Measurement and performance
9.1 What are we trying to achieve from these reforms?
9.2 Financial and reporting standards
9.3 Performance indicators for social housing stock
9.4 Improved tenancy and management benchmarks
50
50
50
50
51
Foreword
It is with great pleasure that we submit this report on implementing the national housing reforms to the
Council of Australian Governments.
The National Affordable Housing Agreement and the associated National Partnership Agreements on Social
Housing, Remote Indigenous Housing and Homelessness, along with the Nation Building and Jobs Plan Social
Housing Initiative, have seen unprecedented levels of funding into the Australian housing and homelessness
systems.
As part of these new agreements and initiatives, the Commonwealth, States and Territories have agreed on
an ambitious reform agenda. Each jurisdiction has agreed to report to the Council of Australian Governments
by December 2009 on the implementation of many of the reforms listed in the agreements.
The Housing Ministers’ Conference, and Commonwealth, State and Territory housing authorities, are working
hard to implement these reforms. While this is an ambitious and long term agenda, 2009 has been a year of
significant progress, building on a steady program of reform which jurisdictions have already been
progressing.
Housing Ministers across Australia, through the Housing Ministers’ Conference, are committed to working
together with Planning, Local Government and Community Services Ministers to implement fundamental
reform to our housing and homelessness systems. Implementation of many of the reforms is underway and
detailed planning to implement the remainder is advanced.
Successful implementation of these, and other fundamental reforms, will contribute to ensuring that
Australia’s social housing and homelessness systems respond to the needs of Australians well into the future.
Page 4 of 52
Executive Summary
This is a time of exciting change to Australia’s housing and homelessness systems associated with
unprecedented levels of investment and policy attention by all Australian governments. The increased
investment and attention by all Australian governments will prove beneficial for all Australians and drive
better outcomes across social housing, the private rental and home ownership markets, and the homelessness
system.
The National Affordable Housing Agreement and the three National Partnership Agreements on Social Housing,
Homelessness and Remote Indigenous Housing have set the foundations for major reform. In addition, the
Nation Building and Jobs Plan Social Housing Initiative has provided a major boost to new social housing
supply across Australia and a further focus on improving outcomes.
All Australian governments are committed to improving housing affordability and to the provision of new
affordable housing choices across the social housing, private rental and home ownership markets to achieve
the goal of a vibrant housing system that meets the needs of individuals and their communities into the 21st
century. A continuing focus on increasing overall housing supply, assisting Australians that are homeless and
on Indigenous Australians is integral to this vision.
All jurisdictions have welcomed the significant funding flowing from the National Affordable Housing
Agreement, the three National Partnership Agreements and the Nation Building and Jobs Plan Social Housing
Initiative. This new funding helps to address the immediate demands on Australia’s housing system.
However all jurisdictions recognise that improving Australia’s housing response is not just about new sources
of funding. We also need to continue work to reform our policy and program response. The reforms associated
with the five agreements present a way forward to address many issues in the housing and homelessness
systems as well as improvements to housing supply planning. They also broaden our housing reform response
to harness all of the policy levers available to governments, such as those through the planning and land
supply systems.
Housing Ministers know that ensuring housing affordability for all Australians is central to meeting economic
and social objectives of the country and that a continued decline in affordability is unacceptable. The economy
impacts the availability, price and affordability of housing as well as its location. In turn, housing impacts on
the economy as a part of the Gross Domestic Product, as a driver of inflation and a contributor to both labour
supply and labour market flexibility. New funding for housing as part of the Nation Building and Jobs Plan
Social Housing Initiative acknowledged the importance of the construction sector to the economy. High
housing costs also push inflation up both through increases in rents and house price rises, and are reflected in
the Consumer Price Index.
Achievements in 2009
A total of 25 housing reforms drawn from the five agreements have been progressed by Housing Ministers.
The 25 reforms have seven major reform themes described in the framework on page 18 of this report.
Some of these reforms require a coordinated approach at a national level involving all jurisdictions in their
development; others have national goals involving cooperation across jurisdictions but flexibility and
responsibility for implementation sits at a jurisdictional level; and implementation of the remainder is the
responsibility of jurisdictions in their own right.
The housing reforms agreed by the Council of Australian Governments (COAG) build on the substantial reform
directions pursued by Housing Ministers over the last few years. Housing Ministers have been working hard to
implement the reforms that can be achieved quickly, while planning detailed strategies alongside Community
Services, Planning and Local Government colleagues to implement those that require medium and longer term
planning.
We have made a strong start – we have already achieved major progress on a number of initiatives and
reforms:
Page 5 of 52

implementing the Nation Building and Jobs Plan Social Housing Initiative - with the assistance of the
community housing sector, up to 19,300 new social housing dwelling will be constructed over the next
few years. Over 60,000 existing social housing dwellings will also be upgraded;

constructing at least an additional 1,600 new dwellings through the National Partnership Agreement on
Social Housing;

bringing new financing and delivery partnerships into the system through the National Rental Affordability
Scheme. This is expected to deliver 11,000 new affordable dwellings by June 2010;

rebuilding the way Governments respond to homelessness - incorporating structural, policy and program
changes to better integrate homelessness services within the total housing system and strengthening
connections with other Government services. This includes implementing A Place to Call Home to deliver
730 new homes for the homeless by 2013, with 74 households already assisted;

reorienting policies and services aimed at improving outcomes for people in social housing. This involves
increasing the focus on assisting people to sustain their tenancies; improving people’s connections to
education, training and employment opportunities; new and improved pathways to private rental and
home ownership; and better support services to assist people with specific needs;

integrating the waiting lists of public and community housing by June 2011, with some jurisdictions
already well advanced. This will offer more choice for people and simplify the application process for
social housing;

committing to a national system of regulation for community housing providers. This will build on
jurisdictional regulation to protect Government investment and provide a firm basis for private
investment, while facilitating cross-jurisdictional providers and driving improved responses to meeting
people’s needs; and

laying the groundwork to improve housing for Indigenous Australians. This includes addressing land
tenure arrangements to improve housing and home ownership outcomes, getting on with the job of
building and fixing houses, and in some jurisdictions developing hostels for people visiting towns and/or
commencing employment.
Sections Three to Nine of this report highlight what Housing Ministers are seeking to achieve from the seven
major reform themes, along with an overview of progress made in 2009 and actions for 2010 and beyond.
Key issues and priorities for 2010
Commonwealth, State and Territory Housing Ministers will continue to work hard to deliver the reforms
detailed in this report and focus on remaining policy challenges in 2010. We have set a work program and
timeframes for delivering a complex set of reforms over the next few years and beyond. We will be working
closely with colleagues and other Ministerial Councils to advance these to agreed timelines.
Some reforms will be implemented at a national level in 2010 and beyond. Other reforms will be implemented
by jurisdictions individually with reporting occurring bilaterally. Housing Ministers will continue to report
progress to COAG on their implementation of all of these reforms.
Page 6 of 52
Progressing major national housing reforms in 2010 and beyond

Work with Planning and Local Government Ministers to accelerate the supply of affordable housing through
planning, land supply and related interventions

Progress discussions to examine options for the Commonwealth payment of funding for social housing

Enhance the growth of the community housing sector, progress a development strategy for the sector and
examine options for a national regulatory system

Implement integrated public and community housing waiting lists by June 2011

Progress national principles to support new or expanded shared equity schemes

Progress the development of products to assist social housing tenants that choose to do so make successful
transitions into private rental or home ownership

Progress initiatives to improve employment outcomes for public and community housing tenants

Develop high level strategies to reduce concentrations of social disadvantage on public housing estates

Develop a set of national principles to increase the social and economic participation of social housing tenants
through better location of stock

Progress the integration of homelessness services with mainstream services and improve the quality of those
services

Develop a set of strategies to increase access to private rental and home ownership opportunities by
Indigenous Australians, and address gaps in municipal services and infrastructure with relevant Ministers

Improve measurement and performance of the social housing sector to drive a better system

Progress the remaining reforms listed in this Report
However Housing Ministers recognise that progressing the 25 reforms listed in this report is an initial phase in
a longer term agenda to address the needs of all Australians. Notwithstanding the recent funding boosts to
the social housing and homelessness systems, significant challenges still remain. Projected population growth
over the next 20 years will increase housing demand. Without increases in supply this will continue to put
pressure on house prices and on rents in the private sector. Australia’s ageing population will also put
pressure on demand for housing that meets the needs of older people, with its effect on the type of housing
and its size, accessibility and connection to the community and services.
In line with the overall housing market, Australia’s social housing system faces the issue of rapidly rising
demand in an environment of existing undersupply, as well as an ageing population of tenants and ageing
stock with a limited outlook for further major funding boosts in the short term. This highlights the importance
of a continuing focus in 2010 on:

the viability and sustainability of the public housing systems across Australia;

the development of a well regulated and growing community sector that can provide greater choice to
tenants;

new and enhanced programs to leverage private capital to build more affordable housing across all
housing tenancies;

joined up programs and reform efforts to improve outcomes across Australia for people who are
homeless, Indigenous Australians, social housing tenants, and low income households in the private
rental and home ownership markets; and

growth in overall housing supply through private investment, including the consideration of any
recommendations arising from the Henry Review into Australia’s Future Tax System.
Page 7 of 52
Housing Ministers propose to bring the suite of existing reforms into an integrated strategy. The strategy
would realise an agreed vision for a vibrant housing and homelessness system into the second decade of the
21st century across at following areas:

improving outcomes and demonstrating benefits for all Australians from the social housing and
homelessness systems, private rental assistance, home ownership assistance and the tax and transfer
system to create a range of responses to existing and emerging challenges;

a strategy to assure the long term sustainability of funding for the social housing system across a
range of providers and products with clear target groups identified and a rational system for service
delivery;

a clear national framework which clarifies the roles and responsibilities of all levels of government, the
community housing sector and the private sector in the delivery of housing and homelessness
outcomes;

improving the responsiveness of the supply side of the housing sector to meet the needs of a growing
population, including through adequate land supply, and strategic and efficient planning, zoning and
development assessment processes; and

providing affordable housing within sustainable, liveable cities, in line with the forthcoming
recommendations of the COAG Taskforce on strategic planning.
Page 8 of 52
1. The Housing and Homelessness Agreements
The Council of Australian Governments (COAG) has reaffirmed its commitment to cooperative working
arrangements through a historic new Intergovernmental Agreement that provides an overarching framework
for the Commonwealth’s financial relations with the States and Territories.
The Intergovernmental Agreement represents the most significant reform of Australia’s federal financial
relations in decades. It is aimed at improving the quality and effectiveness of government services by
reducing Commonwealth prescriptions on service delivery by States and Territories, providing them with
increased flexibility in the way they deliver services to the Australian people. In addition, it provides a clearer
specification of roles and responsibilities of each level of government and an improved focus on accountability
for better outcomes and better service delivery. This is accompanied by a major rationalisation of the number
of payments for Specific Purpose Payments (SPPs), reducing the number of such payments from over 90 to
five.
Each National Agreement contains objectives, outcomes, outputs and performance indicators for the delivery
of services across the relevant sectors. The performance of all governments in achieving mutually agreed
outcomes and benchmarks specified in each SPP will be monitored and assessed by the independent COAG
Reform Council and reported publicly on an annual basis.
The National Affordable Housing Agreement provides Commonwealth funding of $6.2 billion over five years
and is complemented by Commonwealth funding through National Partnership Agreements. A total of $1.1
billion has been allocated for homelessness, $400 million for social housing and $5.5 billion for remote
Indigenous housing. State and Territory governments are also contributing significant funds to these
agreements.
These agreements commit governments to pursue reforms in social housing, homelessness and Indigenous
housing. The package will provide relief for many Australians facing housing stress or homelessness.
1.1 The National Affordable Housing Agreement
The National Affordable Housing Agreement provides the framework for the Commonwealth, State and
Territory governments to work together to improve housing affordability and homelessness outcomes for
Australians. The Agreement recognises that a range of measures and coordinated action across governments
are important to achieve this.
The Agreement commits governments to ensure that people who are homeless or at risk of homelessness
achieve sustainable housing and social inclusion; people are able to rent housing that meets their needs;
people can purchase affordable housing; people have access to housing through an efficient and responsive
housing market; Indigenous Australians have the same housing opportunities as other Australians; and that
Indigenous Australians have improved housing amenity and reduced overcrowding, particularly in remote
areas and discrete communities. The Agreement reflects a broader and more ambitious policy agenda than
the Commonwealth State Housing Agreement it replaced.
The Agreement further strengthens an important series of reforms to the way the Commonwealth, States
and Territories shape their housing systems into the future.
1.2 The National Partnership Agreements
Alongside the National Affordable Housing Agreement are three National Partnership Agreements that respond
to priority need groups including homeless and Indigenous Australians.
Page 9 of 52
The National Partnership Agreement on Social Housing
The primary aim of the National Partnership Agreement on Social Housing is to increase the supply of social
housing through new construction; to ensure that people are able to rent housing that meets their needs; and
that people who are homeless or at risk of homelessness access sustainable housing and achieve better social
inclusion.
Under the Agreement, a Social Housing Growth Fund has been established. This fund provides capital funding
to increase the supply of social housing. Projects approved under this agreement are targeted to new social
housing within jurisdictions where there is unmet need. All projects must be completed and ready for
occupation within two years of funding being allocated.
The Agreement is designed to accelerate projects which address the reform and policy commitments of the
National Affordable Housing Agreement. Projects must also meet one or more of the following criteria:

facilitate or support the transition of people who are homeless or at risk of homelessness to secure,
long-term accommodation;

adhere to universal design principles that facilitate better access for people with a disability and older
people;

target improved housing opportunities for Indigenous Australians;

support the growth of community housing sector; and

offer new and innovative approaches that will support a more effective and efficient provision of social
housing.
Outcomes of the National Partnership Agreement on Social Housing
A total of 1,853 approved dwellings for Australia at 6 November 2009
The number of approved dwellings is subject to change as jurisdictions are still submitting amendments for approval.
Completions/acquisitions at 30 September 2009
AUST
Completed construction
137
Finalised spot purchase
248
TOTAL
385
Tenant profiles at 30 September 2009
Homeless/at risk of homelessness
Disability
Indigenous
Over 55
Family violence
Not specified
TOTAL
ALLOCATIONS
AUST
173
64
16
127
6
55
284
Note: Some households fall under more than one category, eg homeless and aged over 55
The National Partnership Agreement on Homelessness
The National Partnership Agreement on Homelessness aligns to the National Affordable Housing Agreement
outcome that people who are homeless or at risk of homelessness achieve sustainable housing and social
inclusion. The Agreement recognises that addressing homelessness requires a national approach focused
around three key strategies:

effective prevention and early intervention to stop people becoming homeless and to lessen the
impact of homelessness;

breaking the cycle of homelessness with investment in services that help people get back on their
feet, find stable accommodation and, wherever possible, obtain employment; and

a better connected, more integrated and responsive service system to achieve long-term sustainable
reductions in the number of people who are homeless.
Page 10 of 52
A range of outputs have been established to progress these strategies, the four core outputs which are:

the implementation of the A Place to Call Home initiative;

‘street to home’ initiatives for chronically homeless people;

support for private and public tenants to help sustain their tenancies, including through tenancy
support, advocacy, case management, financial counselling and referral services; and

assistance for people leaving child protection services, correctional or health facilities to access and
maintain stable, affordable housing.
Data on allocations to people who are homeless

Across the Nation Building and Jobs Plan Social Housing Initiative, National Partnership Agreement on Social
Housing, A Place to Call Home and National Rental Affordability Scheme, there are 41 innovative
developments which will yield an estimated 1,720 dwellings/places targeted to people who are homeless.
These include:
o
o
o
o
8 Common Ground like developments
3 Foyer type models
731 A Place to Call Home dwellings, including 361 long term homes for families
3 developments for aged people who are homeless, including a Wintringham model in Victoria.
Social housing allocations to people who are homeless

As at 31 October 2009 more than 9,600 Social Housing Initiative dwellings have been identified to provide
accommodation specifically for homeless Australians. This is approximately 50% of total approvals under the
Social Housing Initiative.

Under the National Partnership Agreement on Social Housing, over 1,800 dwellings have been approved and
a significant proportion of these will be allocated to people who are homeless or at risk. Of the 284
tenancies allocated to date, 173 have been made to people who are homeless or at risk – almost 61%.

In addition, all 731 dwellings funded under A Place to Call Home should be allocated to people who are
homeless or at risk of homelessness.

As at 31 October 2009, 87 dwellings had been built or purchased under A Place to Call Home.
The National Partnership Agreement on Remote Indigenous Housing
The National Partnership Agreement for Remote Indigenous Housing provides funding of $5.5 billion over ten
years to reform responsibilities between the Commonwealth, State and Territory governments in the provision
of housing for Indigenous Australians in remote communities. The agreement is targeted to address
overcrowding, homelessness, poor housing conditions and the severe housing shortage prevalent in remote
Indigenous communities.
This funding will provide:

up to 4,200 new houses in remote Indigenous communities; and

refurbishments to around 4,800 existing houses through a program of major repairs and/or
replacement.
Funding is also provided for property and tenancy management, repairs and maintenance improvements to
town camps and for the provision of employment related accommodation.
All governments are working together under these new arrangements to change the way housing is delivered
in remote Indigenous communities by:

ensuring secure land tenure arrangements are in place;

developing better ways of managing new housing construction and refurbishment activity;
Page 11 of 52

improving property and tenancy management practices;

providing employment opportunities for local Indigenous people;

ensuring that there is appropriate consultation with local communities so that housing activity meets
local needs.
During 2009-10 jurisdictions will acquire or construct 300 new houses and complete 1000 refurbishments.
Capital works activity is well underway in Western Australia, South Australia, the Northern Territory and New
South Wales and improved property and tenancy management arrangements are commencing across all
jurisdictions
1.3 The Nation Building and Jobs Plan Social Housing Initiative
The Nation Buildings and Jobs Plan Social Housing Initiative was designed as an additional economic stimulus
to address the emerging financial crisis which began in 2008. The agreement provides a commitment by the
Commonwealth, State and Northern Territory governments to significantly increase the supply of social
housing throughout Australia, and provide much needed accommodation to those who are homeless or at risk
of becoming homeless.
When launched in February 2009 the Initiative represented an unprecedented funding boost to social housing.
It committed funding of almost $6.4 billion over the years 2008-09 to 2011-12 to fund around 20,000
additional social housing dwellings and the refurbishment of around 2,500 existing public housing dwellings.
Although funding was reduced by $750 million in August 2009, the Initiative is still expected to achieve close
to the original target number of new dwellings. It is expected that up to 19,300 new dwellings will now be
constructed through two separate stages, with the repairs and maintenance element of the Initiative
supporting upgrades to more than 60,000 existing social housing dwellings. It is estimated that seven per
cent of dwellings will specifically target Indigenous Australians living in urban and regional areas.
The Initiative is progressing well under both elements. Under the new construction element approvals have
now been granted for the construction of up to 19,300 new homes. The Initiative is targeting the completion
of 2,300 of these dwellings by June 2010 and 75% of dwellings by December 2010. As at the end of October
2009, construction had commenced on more than 2,650 new dwellings and 118 dwellings were already
completed across five states and territories.
New homes provided through the Initiative will be targeted at meeting the housing needs of high priority
groups including persons who are homeless or at risk of homelessness, the elderly, persons with disabilities
and Indigenous persons.
The majority of new homes are being constructed within walking distance to public or regional transport
services and all will have nearby access to essential services. State and Territory governments have advised
that all of the homes being built under Stage Two of the Initiative (around 16,550) will incorporate universal
design features that will mean that the dwelling is more accessible to people who are ageing or live with
disabilities. Of these, 35% will also comply with the Australian Standard for Adaptable Housing – Class C
which will mean that they can be more easily modified to suit the needs of a wide range of tenants, including
those with severe disabilities.
The homes built under Stage Two will also incorporate environmental sustainability features that will reduce
living costs for tenants including solar hot water systems, energy efficient lighting, water tanks and
appropriate insulation. More than 96% of the dwellings constructed under Stage Two will achieve an energy
efficiency rating of six or more stars.
Under the repairs and maintenance element of the Initiative, repair works have now been completed on over
51,000 existing dwellings. This comprises work to almost 36,000 individual dwellings and a further 15,000
dwellings have benefitted from work to common areas. Overall, this element of the Initiative is aiming to
boost the social housing stock by around 10,000 dwellings. This will be achieved by completing upgrade
works to more than 1,900 existing homes that are already uninhabitable as a result of their condition and
over 8,700 dwellings that would become unsuitable for occupancy over the next two years without works
being undertaken. Nearly 1,000 of these homes have already been returned to stock and are being tenanted
by high needs persons.
Page 12 of 52
The Initiative is also providing a critical economic boost to the construction sector. It is estimated that around
15,000 jobs will be created as a direct result of the Initiative. Jurisdictions have indicated that more than
3,000 apprentices are expected to be employed as a result of the Initiative and a number of projects will be
specifically targeting the employment of almost 400 Indigenous persons.
The Initiative is also providing significant opportunities for small and medium enterprises to secure work.
Estimates provided by jurisdictions indicate that up to 50 small and medium enterprises will be undertaking
work on any one project. Many of the developers and builders that have been successful in securing work
through the Initiative have also advised that they have been able to keep on workers that they would have
otherwise needed to retrench as a result of the economic downturn.
Page 13 of 52
2. A new era in affordable housing
2.1 The need for reform
Housing affordability is one of the most important social and economic policy challenges facing governments
across Australia. With projected increases in Australia’s population, and therefore in housing demand, house
prices and rents are likely to continue to increase without significant additions to the number of dwellings in
the private and public sectors. Building the overall supply of housing, and affordable housing in particular,
requires continuing leadership and a close working relationship between the Australian, State, Territory and
Local governments as well as the community housing and the private sectors. Housing is also a fundamental
contributor to closing the gap on Indigenous disadvantage.
Housing policy in Australia over the last ten years has been confined within the parameters of the former
Commonwealth State Housing Agreement which focused almost entirely on social housing. The National
Affordable Housing Agreement broadened the scope of housing policy to include other key portfolio areas such
as planning and transport. The Agreement also provided a vehicle to support wider national objectives,
regarding social inclusion, assistance to people in the private rental and home ownership markets, integration
between housing and other services, and on addressing Indigenous disadvantage.
This broadening of the focus of the National Affordable Housing Agreement acknowledged the importance of
housing policy to all Australians, not just those in need of social or community housing. The community
housing reforms and investments in social housing will expand supply and choices for low to moderate income
households. However, the National Housing Supply Council reported an overall shortage in housing for
Australia. Initiatives to expand supply in the private rental and home ownership sectors are needed to meet
this demand. House prices and rents remain high due to the shortage of supply.
Meeting Australia’s housing needs is of social and economic importance. The economy impacts on housing –
its availability, its price and affordability, and its location – and housing impacts on the economy as a part of
the Gross Domestic Product (GDP), as a driver of inflation and contributor to labour supply and labour market
flexibility. The funding for housing as part of the Nation Building and Jobs Plan Social Housing Initiative
package acknowledged the importance of the construction sector to the economy - in 2006-07, it contributed
6.7% to GDP. Residential construction has been estimated to add two to three per cent to GDP growth over a
typical upswing of two to three years. Residential construction also has a large multiplier effect: the Australian
Bureau of Statistics estimates that $1 billion of additional investment in the construction sector generates a
total of $2.73 billion in economic activity and 28,000 jobs. High housing costs also push inflation up both
through increases in rents and house price rises and are reflected in the Consumer Price Index. Lack of
affordable and available housing can impact on labour supply and labour market flexibility. It may be difficult
to attract key workers (such as nurses, teachers, and hospitality staff) to areas where housing costs are high
relative to wages, such as inner cities and mining areas.
While the social housing system has served Australia well over the last half of the 20th century, the demands
on Australia’s social housing and homelessness systems into this century highlight the need for fundamental
reform of social housing and a broader focus on housing policy for other tenures. The National Housing Supply
Council (2009) identified that if Australia had maintained the same proportion of social housing stock it had in
1996, (5.8% of all housing stock), there would need to be an additional 90,000 more social housing dwellings
in 2008 than was actually the case. Its preliminary projections for its 2010 report show increasing demand for
social housing in the next 20 years.
.
Increasingly Housing Ministers recognise there are significant challenges emerging:

there is a shortfall in housing supply across Australia of 85,000 which is likely to grow over the next
20 years, especially if the population grows to over 35 million by 2056. This shortfall has significant
effects on the affordability of home ownership and private rental in many locations, with particular
impacts on low income households that struggle to find available and affordable rental housing;

an ageing population is creating demand for smaller housing that allows older people to age in their
communities and be close to transport, services and shops;

public housing agencies face continuing challenges from sustained demand by very low income
households, many of whom have urgent and complex needs. Agencies are also grappling with financial
Page 14 of 52
sustainability issues and are dealing with an ageing and often inappropriate stock. These pressures
have reduced access to social housing for many Australians, despite the recent record levels of
investment into social housing and homelessness;

the development of the community housing sector is being advanced by most jurisdictions through the
regulation and growth of large affordable housing providers that can leverage private finance.
However more work at a national level will build a more prominent role for these agencies within
Australia’s social housing system;

a majority of Indigenous Australians (70%) are found in the lowest two income quintiles and
Indigenous Australians are already over represented in the social housing system. Low incomes and
poor housing affordability affect the capacity of Indigenous Australians to access the private rental
and home ownership markets; and

over the last five years we have seen increasing numbers of Australians becoming homeless. It is
clear that the homelessness sector alone cannot tackle homelessness. There must be greater
integration between homelessness, housing and mainstream services to prevent homelessness and
ensure that the cycle of homelessness is broken.
While the housing reforms outlined in this paper go some way to address these issues, they will not address
the underlying lack of supply of all housing. Unless the underlying systemic and structural issues that restrict
the supply of housing are addressed, house prices and rental costs will continue to rise. Continuing reform of
the planning system is needed to ensure sufficient supply and to encourage more affordable housing.
Housing Ministers recognise that reform to social housing and homelessness systems does not require just a
funding response. More national effort is required into improving the ways in which people:

enter and access the social housing system;

live in social housing, and experience their communities with strong social inclusion and access to
education and employment opportunities; and

exit social housing into affordable private rental or home ownership as their circumstances improve.
The need for housing and homelessness reform has been recognised by COAG as fundamental to the
achievement of social and economic objectives. National attention by all Australian governments and by
Housing Ministers will drive this reform over the next five years.
2.2 Housing demand and supply
The National Housing Supply Council was established by the Australian Government in May 2008. The Council
is an independent group that operates at arms length from government and reports annually to the
Commonwealth Minister for Housing.
In its first report, which was released in March 2009, the National Housing Supply Council estimated that
there was an overall gap (unmet need) of 85,000 dwellings in 2008. If the Council’s medium growth estimate
of underlying demand and medium supply projections were met, there would be a cumulative gap by 2028 of
431,000 dwellings. Annually the shortfall is projected to be 23,000 in 2010, rising each year by a similar
amount until 2016, when the size of the annual gap decreases, consistent with an ageing population.
The shortage of overall housing supply affects affordability across the home ownership and private rental
markets across many parts of Australia. Housing affordability is an issue that particularly affects low income
households who may be excluded from some markets, or face paying high proportions of their income on
housing. The Council found that in 2008, 1,410,000 dwellings were affordable for the 814,000 private renters
in Australia with incomes below the 40th percentile. Of these, 1,089,000 dwellings were occupied by
households in higher income percentiles. This results in an increase from an ‘apparent surplus’ of 596,000
affordable dwellings to a shortfall of 493,000 affordable and available dwellings for those in the lowest
quintile.
In regard to social housing supply and demand projections, the Australian Government analysis at Figure 1
shows that while recent initiatives will increase the supply of social housing up to 2013-14, stock will reduce
Page 15 of 52
over time to 2030 without continuing strong investment. The possible contraction in social housing supply is in
the context of continuing demand for social housing from household growth amongst targeted client groups.
Figure 1: Social housing demand and supply projections
700
Social housing required to keep pace with low household growth
Social housing required to keep pace with medium household growth
650
Social Housing Dwellings ('000)
Actual/projected social housing dwellings
600
550
500
450
400
350
1996
2000
2004
2008
2012
2016
2020
2024
2028
Year
Assumptions for Figure 1:
1.
Household growth projections are from the National Housing Supply Council’s 2008 State of Supply Report.
2.
35,000 National Rental Affordability Scheme (NRAS) dwellings (based on an assumption that 70% of 50,000 dwellings have not for profit
organisations or endorsed charities as tenancy managers) and 19,300 Nation Building and Jobs Plan Social Housing Initiative dwellings
are distributed across years 2009-2012.
3.
600 A place to call home dwellings are distributed across years 2009-2013.
4.
1,700 National Partnership Agreement on Social Housing dwellings are distributed across years 2010-2011.
5.
The projection does not take into account the trend in actual stock from 1996 to 2006.
6.
NRAS dwellings exit affordable housing stock as they leave the scheme.
7.
The projection does not consider the proportion of NRAS dwellings tenanted by households eligible for social housing.
The National Rental Affordability Scheme will add to the supply of new affordable rental dwellings. Through
the Scheme, all jurisdictions are encouraging large-scale investment by the private sector to build affordable
private rental dwellings at a discounted market rent.
By contributing to the construction of new and more affordable rental homes, the National Rental Affordability
Scheme will have positive flow-on effects to the community generally, by expanding affordable rental supply.
The Scheme dwelling availability target is 11,000 by 30 June 2010 and a further 39,000 dwellings by 30 June
2012 (a total of 50,000 dwellings).
Other initiatives are also exploring some of the barriers to supply. The Henry Review is examining the impact
of taxation on housing consumption and investment. The COAG Taskforce on Strategic Planning is exploring
how strategic planning and infrastructure provision support productive, vibrant cities.
However, to improve the situation for the majority of Australians who meet their housing needs in the private
market and slow down the increase in house prices and rents, a stronger supply side response will be needed
to assist prospective home buyers into home ownership and temporary or long-term renters into secure
affordable, stable housing.
The National Housing Supply Council has identified that land shortage is not a major hurdle to increased
supply. It identified the planning system, including holding, compliance and infrastructure costs as a
significant contributor to constrained growth in the housing market.
The Housing Affordability Fund presents an opportunity to address some of the planning constraints to
improve the supply of social and affordable rental housing for the lower end market. It addresses two
significant ‘supply-side’ barriers to housing development:
Page 16 of 52

infrastructure costs (such as water, sewerage, transport, and open space); and

holding costs associated with the time taken by planning and approval processes.
A Housing Affordability Fund allocation of $30 million is being used to help implement electronic development
assessment procedures, which can reduce delays and inefficiencies in the planning system.
Local Government and Planning Ministers have progressed parallel efforts across jurisdictions to streamline
planning processes and increase and stimulate infill development near essential services and transport and
the important opportunities this offers affordable housing by reducing ongoing costs for lower income
households. This will be reported separately to COAG by Local Government and Planning Ministers in 2010.
Housing, Local Government and Planning Ministers have agreed to meet in early 2010 to discuss progress in
these areas and in particular to focus efforts on areas that would stimulate a greater supply of housing at
affordable levels.
2.3 The Housing and Homelessness Reform Framework
The reforms agreed through the five housing related agreements described in Section One of this report,
along with further reforms agreed by Housing Ministers have been drawn together into a Housing and
Homelessness Reform Framework. The Framework comprises twenty five reforms addressing current and
future challenges to the social housing and homelessness systems, along with a focus on improving housing
outcomes in remote Indigenous communities and initiatives to expand housing supply.
The individual reforms have been categorised into seven major reform themes to highlight directions to
transform the social housing and homelessness systems; address specific levers outside the housing and
homelessness system that can increase supply; improve outcomes for tenants and their communities; address
the specific needs of vulnerable communities; and provide better accountability for the achievement of
outcomes. The individual reforms and their reform themes are described in Figure 2.
Page 17 of 52
Figure 2: The national housing and homelessness reform framework
National Housing Reforms Projects
Planning
Housing system reform
Improved client mobility
Stronger communities and
tenancy management
Utilising government land supply and other interventions
Anticipated supply shortfalls
Options for Commonwealth payment of funding for social housing
Community housing industry development strategy
Enhancing the growth of the community housing sector
National regulatory system for community providers
Prudential supervision
Leveraging investment
Small and medium business
Integration of waiting lists
Shared equity
Seamless transitions to private rental and home ownership
Creating incentives for public housing tenants to take-up work opportunities
Improved portability for public housing tenants
Reducing concentrations for social disadvantage
Location of social housing stock
Rent setting and allocation policies
Compulsory rent deductions
Tenancy management plans for inappropriate behaviours
Homelessness
Integration of homelessness services with mainstream services
Homelessness supporting quality services
Homelessness data collection and management
Workforce development strategy
Indigenous
Indigenous access to mainstream housing and home ownership
Indigenous municipal services
Measurement and
performance
Financial and reporting standards
Performance indicators for social housing stock
Improved tenancy management and maintenance benchmarks
Page 18 of 52
3. Planning reforms
Utilising government land supply and other interventions
Anticipated supply shortfalls
Planning
3.1 What are we trying to achieve from these reforms?
The policy levers that contribute to a diverse social housing system and more affordable housing supply do
not only reside in the Housing portfolios, but in Planning and Local Government portfolios as well.
These reforms seek to harness broader policy levers to achieve affordable housing outcomes. The focus is on:

making improvements to identify and release government owned land arising from audits, and to
adopt affordable housing targets on government owned land (Local, State/Territory and
Commonwealth);

introducing planning mechanisms and other interventions to facilitate affordable housing on privately
held land; and

developing options to address supply shortfalls including through identifying areas of housing need
based on the work of the National Housing Supply Council, through city-wide planning authorities
and/or state planning mechanisms for COAG.
Without continuing effort to expand affordable housing supply, demand resulting from household growth will
place pressure on housing affordability, particularly in the private rental market. Figure 3 highlights increases
in weekly rents across capital cities to 2009, with projections indicating these will continue to increase without
determined action.
Figure 3: Increase in real weekly rents - Capital cities 2002-09 ($ June 08)
$600
$550
$500
Sydney
Melbourne
$450
Brisbane
Adelaide
$400
Perth
Canberra
$350
Hobart
Darwin
$300
$250
$200
2002
2003
2004
2005
2006
2007
2008
2009
Source: REIA Market Facts Report (CPI adjusted by FaHCSIA Office of Housing)
Page 19 of 52
3.2 Utilising government land supply and other interventions
1.
What has been achieved to date?
Jurisdictions are finalising their land audits and to date approximately 1150 hectares of land across 39 sites
have been identified as suitable for housing and community development over the next one to three years.
Further work is required to refine the availability and precise timing of each site identified in the audits.
Jurisdictions are investigating further sites for residential development and affordable housing.
Government Land Supply
Surplus government land audits

In March 2008, the Council of Australian Governments agreed to a Land Audit to facilitate improved housing
supply through the identification of surplus Commonwealth, State and Territory land for possible release for
housing development.

These audits are now complete and all jurisdictions are progressing sites suitable for development.
Governments agreed under the Nation Building and Jobs Plan Social Housing Initiative to make better use of
government owned land to provide more affordable housing opportunities for low income earners. The Audits
found that there are substantial differences in the size and location of government land holdings across
jurisdictions, however, the way in which jurisdictions identify and release government held land is generally
consistent across jurisdictions. Five jurisdictions (ACT, NSW, SA, VIC, WA) have targets for affordable housing
in the release of government owned land.
Planning mechanisms to support affordable housing
In 2006, Planning, Local Government and Housing Ministers agreed to a National Approach to the Use of
Planning to Promote Affordable Housing. An assessment of progress against the National Approach has
concluded:
2.

all jurisdictions are committed to the guiding principles of the National Approach and none are seen as
inconsistent with current planning instruments, policies and directions;

explicit provision for objectives relating to affordable housing is made in primary legislation in New
South Wales, South Australia, and Australian Capital Territory. In Queensland and the Northern
Territory, affordable housing objectives are included in the State Planning Policy and the Territory
Planning Scheme respectively. Western Australia, Victoria and Tasmania rely on implicit references
drawn from objectives relating to sustainability. In general further steps are needed to reflect and
support objectives in plans at all levels;

an Affordable Housing National Leading Practice Guide and Tool Kit was released in 2008 and provides
examples of the strategic frameworks and policy approaches needed to support the delivery of
affordable housing through the planning system. It provides local and international examples to
illustrate leading practice in delivering affordable housing through planning mechanisms and promotes
nationally consistent principles, terminology and mechanisms. The Kit is available online and is hosted
by Housing NSW; and

in early 2009, most jurisdictions adopted provisions to fast track planning approval processes for the
19,300 new social housing dwellings to be constructed under the Nation Building and Jobs Plan Social
Housing Initiative.
Next steps
In moving forward, there are three areas requiring improved national effort:
1. Nationally consistent targets
Nationally consistent targets for affordable housing, where jurisdictions decide to adopt such an approach, will
provide greater consistency and certainty for the industry and encourage developers to invest in affordable
housing. It will improve reporting and evaluation of performance across housing markets to better inform
Page 20 of 52
future investment or policy responses. Housing portfolios, in consultation with government land agencies,
planning and local government portfolios, will lead this work.
The targets will be concrete and targeted at addressing better supply.
2. Linking financial incentives
Investment under the National Affordable Housing Agreement will seek to reinforce and accelerate reforms to
facilitate the supply of affordable housing through planning, government land supply and related interventions
adopted across jurisdictions. Opportunities are presented through the Housing Affordability Fund (HAF) and
the National Rental Affordability Scheme (NRAS). As the Australian Government considers the outcomes
sought for subsequent rounds of HAF and NRAS, the potential to link investment to targets on government
land or in specific planning approaches to affordable housing will be considered. This will be pursued on a
nationally competitive basis or bilaterally to leverage local opportunities.
3. National principles
At its April 2009 meeting, COAG agreed to develop a set of supporting national planning system principles.
This work will capture the guiding principles developed under the National Approach to Affordable Housing by
Planning, Local Government and Housing Ministers in 2007.
3.3 Anticipated supply shortfalls
1.
What has been achieved to date?
Housing Ministers have welcomed the increased attention given to the supply of affordable housing through
the National Housing Supply Council State of Supply Report. Local Government and Planning Ministers have
progressed parallel efforts across jurisdictions to streamline planning processes and increase and stimulate
infill development near essential services and transport and the important opportunities this offers affordable
housing by reducing ongoing costs for lower income households.
2.
Next steps
Housing, Local Government and Planning Ministers have agreed to meet in early 2010 to discuss progress in
these areas and in particular to focus efforts on areas that would stimulate a greater supply of housing at
affordable levels. This may include:

planning policies to incorporate provision for affordable housing through measures such as setting
aside a proportion of all new government land releases for affordable housing, density bonuses for
redevelopment projects, inclusionary zoning and incentives for transit-oriented developments;

more investment in infill-based infrastructure, and government intervention to reduce planning
delays, costs and uncertainties associated with infill development. This would improve housing
affordability and sustainability – including lifetime housing costs and travel time for households;

as part of the development assessment reform process, more code-based assessment and clarity on
the grounds for objection would be helpful in making the development assessment process more
efficient and effective; and

clarifying the basis for infrastructure and developer charging, drawing on a set of national charging
principles that would clarify responsibilities for the payment of infrastructure.
Housing plays an integral role in Australian society and in the economy. It provides a source of shelter and a
base for people to participate in communities and the workforce, so is linked to the effectiveness of the labour
markets and the productivity of cities. It is the largest store of the nation's wealth and a major source of
retirement savings for home owners.
Housing Ministers note that the tax-transfer system affects the housing market through a range of taxes,
concessions and transfers, which in some cases are targeted at certain housing tenures or income levels.
These aspects of the system influence the type of homes people live in, the way they save and invest,
including for their retirement, and the affordability of housing and incentives to work (which can impact on the
economy through the supply of labour). Through its treatment of housing, the tax-transfer system also
delivers significant assistance to particular groups of Australians, which affects the overall equity of the
Page 21 of 52
tax-transfer system. The system also affects how housing is supplied to the private rental market (ie by
individual investors, rather than institutional investors such as superannuation funds) through the design of
land and other taxes. These matters are being considered in the context of the Henry Review into Australia’s
Future Tax System.
Page 22 of 52
4. Housing System Reform
Housing system reform
Options for Commonwealth payment of funding for social housing
Community housing industry development strategy
Enhancing the growth of the community housing sector
National regulatory system for community providers
Prudential supervision
Leveraging investment
Small and medium business
4.1 What are we trying to achieve from these reforms?
Australian Governments share a vision that all Australians have access to affordable, safe and sustainable
housing to support social and economic participation. To give effect to this vision we will need to ensure the
viability of social housing and undertake fundamental reform to the institutional framework and funding
arrangements to sure up the availability of affordable housing more broadly. In addition, we must ensure that
appropriate links are developed between mainstream, housing and homelessness systems to ensure that
people experiencing homelessness get the help they need to keep their housing secure or to get access to
secure housing. These reforms will be built on partnerships between the Commonwealth, State and Territory
governments, the community housing sector and the private sector. Successful housing and homelessness
reform will improve social and economic outcomes for social housing tenants.
Our key priorities for housing system reform going forward are:

providing a viable and sustainable funding system for social housing into the future; and

institutional reforms, which include bringing a diverse range of housing providers into the social
housing market to both increase housing choice for tenants; and to deliver more housing supply by
enabling non-government providers to leverage off their property portfolios.
In particular the reforms have an emphasis on growing the community housing sector, including through both
the transfer of public housing assets to community housing management and through the transfer of title on
community housing managed properties.
The maturity and capability of community housing sectors around Australia, along with the establishment of
effective regulatory systems, will influence the scale and timing of this growth. This will be informed through
bilateral discussions with jurisdictions.
Meaningful change across the housing system, including the homelessness sector, will require a staged
implementation over the next five to ten years.
4.2 Options for the Commonwealth payment of funding for social
housing
1.
What has been achieved to date?
The funding provided through the Nation Building and Jobs Plan Social Housing Initiative, as well as the
certainty provided through the National Affordable Housing Agreement and the National Partnership
Agreements, are contributing to a boost in supply and an increase in the range of services being offered to
vulnerable people. However, a continuing focus on the long term sustainability of the social housing system,
and options to improve the way in which it is funded is needed. In addition, we must continue to monitor
levels of homelessness to ensure the right volume and balance of services are being delivered to achieve
targets.
On 29 November 2008, COAG outlined its agreement to consider a range of further social housing reforms as
part of the National Partnership Agreement on Social Housing, including the possible payment of
Commonwealth funding assistance through a per dwelling subsidy, such as Commonwealth Rent Assistance.
Page 23 of 52
In the longer term, reform of Commonwealth funding assistance for social housing and other assistance
measures funded through the National Affordable Housing Agreement and associated National Partnership
Agreements provides an opportunity to clarify the roles and responsibilities of the Commonwealth and States
and Territories. This would provide more equitable housing affordability outcomes for tenants across different
types of housing tenure.
As part of that process and in response to the output agreed in the National Partnership Agreement on Social
Housing, Housing Ministers considered a paper prepared by the Australian Government in September 2009
that proposed goals for the reform of Commonwealth funding assistance. These included that funding:

should encourage growth in the number of dwellings provided and support the development of a
diversified social housing system to ensure equitable access to affordable, safe and sustainable
housing for low income people;

should be part of a comprehensive strategy to maximise social housing tenants’ social and economic
participation; and

should improve the operation of State Housing Authorities by explicitly linking specific purpose
payments to State and Territory Governments for housing to the actual number of public housing
dwellings provided in each jurisdiction to provide clearer incentives to increase provision, and improve
equity and transparency of assistance.
The paper presented a series of options which the Australian Government considers has the potential to work
towards addressing the imbalance across jurisdictions between shares of social housing dwelling stock and
population; provide jurisdictions with an incentive to increase their shares of housing stock; improve the
visibility of the Commonwealth’s contribution to housing affordability in public housing; and improve equity of
affordability outcomes for tenants across different types of housing tenure. However, the extent to which
these aims can be achieved is dependent on the total funds available as existing levels of funding are unlikely
to be sufficient to fully achieve agreed reforms.
2.
Next steps
Reform to funding will need to address the financial and structural barriers in the medium to long term and
provide a financial platform that would facilitate leveraging investment through community housing. The
paper has been referred to Commonwealth, State and Territory Treasurers for consideration and advice on
federal state financial relations, ahead of further discussion of these matters in 2010.
4.3 A community housing industry development strategy
The reform agenda set out in the National Affordable Housing Agreement and the Nation Building and Jobs
Social Housing Initiative places significant emphasis on the community housing sector as a key component of
an integrated social housing system. The outcome sought is a sector that is a significant provider of social
and affordable housing within five to ten years: specifically one which owns and/or manages up to 35% of
social housing stock by July 2014.
The community housing sector represents a responsive and client focussed approach to social and affordable
housing provision. However the sector is extremely diverse, ranging from small providers to large housing
associations managing thousands of tenants. Capable community housing providers have the potential to
drive an increased supply of social and affordable housing as a complement to public housing.
Creating the market conditions for growth requires institutional reform to support housing providers to lift
operational capability. An industry development strategy is required to build the capability of existing
providers. This will be supported by appropriate regulatory and funding frameworks to facilitate the expansion
of this sector while protecting the interests of tenants and the investments of government.
Page 24 of 52
1.
What has been achieved to date?
All Australian jurisdictions are committed to the growth of larger community housing organisations that will
operate alongside existing state-run housing authorities. To achieve the objective of a strong community
housing sector that is a significant provider of social and affordable housing requires an industry development
strategy which provides pathways to develop that sector into the future.
A national industry development strategy would, in light of agreed policy and funding settings, establish
business and delivery models over the next five years which will:

develop a mature and high-functioning community housing sector in Australia that improves choice for
tenants and delivers quality rental housing at affordable cost for those in the lower income brackets;

facilitate continued growth in affordable social housing stock; and

identify any short-term investment required to develop the capability of community housing providers
to increase their scale of operations.
In 2009 the Australian Government commissioned a report to provide strategic advice on the viability and
sustainability of the community housing sector in Australia and to assess prospects for growth.
2.
Next steps
A sensible, staged approach of capacity building over a five to ten year timeframe would see the community
housing sector develop capacity to operate at scale and provide greater choice for social housing tenants. A
national industry development strategy would enable the existing community housing sector to build its
management and developer capacity, workforce capability, information technology and commercial
competencies.
There are a number of community housing growth providers nationally with large property portfolios and
potential expertise to drive the increased supply of social housing. Building the capability of these and other
organisations further, through further government investment, participation in the National Rental
Affordability Scheme and by building governance and financial acumen will be a critical part of the industry
development strategy. Where supported by State and Territory government stock transfers may form part of
the strategy. The emergence of new and diverse providers will also be actively supported.
Housing Ministers will consult the community housing, financial and construction sectors in the development
of a national industry development strategy in 2010. In particular:

peak community organisations and providers themselves will inform the directions needed to build a
vibrant community housing sector into the next decade;

institutional finance providers need to be confident in the capability and management of operators
within the sector; and

the views of developers looking to partner with these organisations need to be canvassed to assess
their expectations around capability, risk and profit sharing.
4.4 Enhancing the growth of the community housing sector
1.
What has been achieved to date?
There has been steady growth in community housing provision over the past few years, with 72,000
mainstream and Indigenous community housing dwellings comprising 17.6% of all social housing stock in
2008. In May 2009 Housing Ministers agreed to develop, over time, a large scale community housing sector in
Australia comprising up to 35% of social housing by 2014.
New initiatives such as the National Rental Affordability Scheme and the Nation Building and Jobs Plan Social
Housing Initiative will accelerate growth of community housing providers operating at sufficient scale to
increase tenant choice, increase competition and leverage assets for further growth.
Page 25 of 52
Housing Ministers agreed in May 2009 that:

up to 75% of housing stock constructed under Stage Two of the $5.238 billion Nation Building and
Jobs Plan Social Housing Initiative be transferred to community housing providers by 30 July 2014;
and

jurisdictions and the Commonwealth develop, over time, a large scale community housing sector in
Australia comprising up to 35% of social housing by 2014.
Figure 4: Community housing sector in Australia - 2008
State-ow ned and
managed Indigenous
housing, 12,778
Mainstream
community housing,
Indigenous
36,079
community housing,
23,279
Ministers also agreed that the issues to be discussed on a bilateral basis under this reform should ensure:

maximum retention of overall social housing stock numbers;

no negative impact on the financial viability of remaining public housing holdings;

no reduction in the capacity to house priority customers into the future; and

the capacity and viability of the community housing sector.
The scale and timing of increasing the proportion of social housing stock held by community housing will vary
across jurisdictions depending on the maturity and capability of the sector and the strength of supporting
regulatory systems.
Growing community housing providers
2.

The participation of community housing providers in the National Rental Affordability Scheme has been very
successful. The sector took up 55% of incentives in the first funding round and 52% in the second funding round.
This represents around 5,600 dwelling units, and will increase the proportion of all social and affordable housing
stock held by the community housing sector to 18.5% by 2011-22.

Housing Ministers also agreed in May 2009 that up to 75% of housing stock constructed under Stage Two of the
$5.238 billion Nation Building and Jobs Plan Social Housing Initiative be transferred to community housing
providers by 30 July 2014. If the 75% target is achieved this will increase dwelling stock held by the community
housing sector by a further 12,000 units to just over 90,000 or 20.5% of social and affordable housing stock.
Next steps
Increasing the amount of social housing stock being held by community housing organisations will require
explicit strategies to attract new players into social housing provision and the creation of new purpose-built
Page 26 of 52
social housing providers, as well as stock transfers. Bilateral discussions with jurisdictions will be completed
by mid 2010.
The Australian Government has sought information from jurisdictions on the proposed targets and timeframes
for the transfer of stock constructed under the Nation Building and Jobs Plan Social Housing Initiative, noting
barriers to transfer and issues which need to be addressed.
4.5 A national regulatory system for community housing providers
1.
What has been achieved to date?
Currently community housing providers are regulated to varying degrees in different jurisdictions. We are
now seeing the emergence of players with greater scale and an interest in operating within and across
jurisdictional borders. Over time and with encouragement by government, the size of community housing
providers is likely to increase with some national providers emerging. To support the development of growth,
and capacity to meet government objectives, including the protection of investment, there needs to be a
consistent regulatory approach.
Regulating community housing providers
Amendments to the Victorian Housing Act 1983, which took effect in January 2005, created a regulatory framework
for community housing agencies in Victoria.
The Registrar of Housing Agencies registers and regulates housing providers and housing associations, against the
Act and performance standards, that represent the standard of operation required of all registered housing agencies.
The registered housing sector in Victoria has grown from six registered agencies in 2005, to 36 registered agencies in
2009, managing over 11,000 housing units.
Until a national regulatory system is in place, existing state-based systems would continue to operate with
transitional provisions being put in place ensuring current legislation remains intact during the transition
process.
2.
Next steps
Housing Ministers are committed to a regulatory system which will enhance the community housing sector’s
capacity to operate at scale and across jurisdictions.
Options for a national regulatory system for community housing providers
Option A – fast tracked harmonisation of State and Territory regulatory arrangements for all providers based on
model legislation, with the Australian Government (or an alternate national regulator) to regulate specific special
purpose providers.
Option B – a mixed model with the Australian Government regulating multi jurisdictional and/or growth community
housing providers with the States and Territories regulating the remainder.
In early 2010 a public discussion paper outlining options for a national regulatory system will be released to
enable consultation with the community sector. This will inform the approach taken to implement a national
regulatory system by July 2011.
Page 27 of 52
4.6 Prudential supervision
1.
What has been achieved to date?
Prudential standards cover elements of financial viability, strategic management, risk management and
governance, and could form a sub set of the regulatory code that sits within a regulatory framework.
Prudential regimes already exist in some States and Territories as part of state-based regulatory systems.
These approaches are varied and would need to be assessed against a nationally agreed set of prudential
standards.
For medium and large housing providers, prudential regulation should focus on their performance against
financial and commercial standards, encouraging the adoption of optimal business models that achieve
organisational efficiency and maximise viability and sustainability.
In September 2009, Housing Ministers considered a paper from the Australian Government on prudential
supervision and noted the focus should be on the community housing sector to ensure the best outcomes
from public investment. This reform has a strong linkage with the reform on a national regulatory system for
the community housing sector.
2.
Next steps
In 2010 this reform will be progressed in tandem with decisions made on the reform for the development of a
national regulatory system for community housing providers. The first steps will include:

the development of a timeframe for implementation, consistent with proposals for a national
regulatory system for community housing providers; and

an agreed set of prudential standards for the community housing sector that will form part of the
National Regulatory Code.
4.7 Leveraging investment
1.
What has been achieved to date?
Leveraging social housing assets can contribute to expanding the supply of affordable and social housing.
Much of the existing portfolio of community housing in Australia has been developed using government grants
subject to organisations providing additional contributions. These additional contributions have typically been
in the form of land, small equity contributions or debt.
Housing Officials have sought information on the current experiences and achievement of jurisdictions with
leveraging and an assessment of its capacity into the future. The experience with debt is mixed to date
across jurisdictions, with good outcomes having been achieved in some jurisdictions although limited in scale.
Page 28 of 52
Case studies of leveraging government investment

New South Wales – through the Affordable Housing Innovations Fund, registered community housing providers
will deliver 356 new dwellings using a mix of grant funding, debt financing and equity contributions. This is two
thirds more affordable rental homes than the government could provide alone.

Victoria – Registered housing agencies are required to contribute at least 25% of total project costs, via debt
funding, other monetary contributions and land. This means that the Victorian Government’s $300 million
housing investment in its Strategy for growth for low income Victorians will result in approximately $400 million
of affordable housing.

South Australia – partnering organisations seeking funding from the Affordable Housing Innovations Fund have
contributed up to 50% equity. Approximately $69 million from the Fund has been committed to 43 affordable
rental housing projects delivering 595 housing outcomes.

Western Australia - has introduced a leasing program which provides debt free stock to regional and growth
providers to underpin their cashflow and generate additional surplus revenue. 160 units have been delivered
with 500 targeted this financial year. This will increase leveraging capacity on capital projects by a further eight
to ten per cent, depending on the mix of stock. WA has also developed an Asset Transfer Program – this will
transfer full, unencumbered title to growth providers subject to agreement on growth to be leveraged from these
units.
2.
Next steps
The leveraging outcomes achieved so far provide learnings for future leveraging. However, the amount of
leveraging that can be achieved in the future will be partly reliant on the interaction of factors such as:

the policy and economic contexts (for example, market conditions, interest rates, growth of NRAS);

the desired housing outcomes (for example, the need to improve long term affordability, broader
tenant mix, the need to provide housing for high need households on low incomes and to deliver
housing in high need locations); and

the financial position of social housing providers (for example, their ability to raise and manage debt).
Housing Ministers have agreed that strategies to further progress leverage opportunity will occur through
bilateral discussions in 2010.
4.8 Small and medium businesses
1.
What has been achieved to date?
Under the Social Housing Initiative all jurisdictions are continuing to ensure that small and medium businesses
are given equal opportunities to tender for, and be involved in, State/Territory managed housing projects.
The guidelines for the Social Housing Initiative ensured that jurisdictions’ procurement processes did not
preclude small and medium businesses from submitting proposals for funding under Stage Two of the new
construction element.
2.
Next steps
Housing Ministers are committed to providing a strong role for small and medium businesses in social housing
projects. Opportunities for these enterprises will continue through Commonwealth, State and Territory
initiatives in 2010.
Page 29 of 52
5. Improved client choice and mobility
Improved client mobility
Integration of waiting lists
Shared equity
Seamless transitions to private rental and home ownership
Creating incentives for public housing tenants to take-up work opportunities
Improved portability for public housing tenants
5.1 What are we trying to achieve from these reforms?
Access to stable, appropriate and affordable housing provides an important foundation and pre-requisite to
establishing community connections, securing and maintaining employment and realising an individual’s
potential in other areas of their lives.
It is important for people to be able to access affordable housing that suits their individual needs and
circumstances, whether it be in the public housing, community housing, private rental or home ownership
market. This goal is reinforced through the National Affordable Housing Agreement vision that all Australians
will have access to affordable, safe and sustainable housing that contributes to their social and economic
participation. Housing Ministers recognise the importance of improving pathways between the social housing,
private rental and home ownership tenures for all Australians. This means better addressing affordability gaps
for all Australians and developing policies and products across governments and the community housing and
private sectors to respond to the needs of Australians into the future.
Housing Ministers are committed to simplifying access and improving entry processes into the social housing
system, and to enable pathways out of the social housing system into either the private rental or home
ownership market for those tenants who wish to move. This requires a more flexible approach to the nature of
social housing assistance to respond quickly to the needs of social housing tenants.
Better social and economic participation for social housing tenants requires stronger links to training and
employment opportunities, and policies to assist social housing tenants move so they can take up
employment. To achieve this goal, a joined-up approach will be adopted involving collaboration between all
Australian governments across the health, community and employment services.
5.2 Integration of waiting lists
1.
What has been achieved to date?
Housing Ministers have agreed to integrate public and community housing waiting lists by July 2011 unless
otherwise agreed bilaterally.
An integrated waiting list will improve client housing options (in terms of where they live and who manages
their tenancy) and streamline processes so clients in housing need can more easily navigate the housing
service system. A number of jurisdictions have already taken steps to merge public housing and community
housing provider waiting lists.
Page 30 of 52
Integrating common waiting lists

Queensland introduced its One Social Housing System through 2006 and 2007 to create a single register for
housing assistance. From a client’s perspective this means a single entry point for long term social housing, with
clients having to tell their story only once with standard assessment processes across a range of products. The
new process has resulted in simpler access for very vulnerable households, with over 70% of recent allocations
being homeless households and 25% being Indigenous households.

Other jurisdictions are in the process of designing and implementing an integrated waiting list (except for the
Northern Territory which does not have a community housing sector).

Western Australia is implementing a joint wait list (public and community housing) with registered growth
providers and preferred providers. This includes amalgamation of their independent lists into the joint wait list.
Western Australia anticipates coverage of 50% of community housing units by July 2010, moving toward 75%
from July 2011.
The learnings from Queensland and overseas provide some useful insight about the key issues and resource
requirements associated with the implementation and ongoing operation of a common wait list. These
findings will assist jurisdictions to inform the design and establishment of their respective integrated wait lists.
2.
Next steps
All jurisdictions (except for the Northern Territory which does not have a community housing sector and
Queensland which already has a fully operational common wait list in place) have commenced and are at
different stages in the design and implementation of an integrated public and community housing waiting list
in adherence to the agreement to deliver on this reform by July 2011 unless otherwise agreed bilaterally.
Housing Ministers noted that the implementation of this reform will require effective consultation and
partnership with the community housing sector to deliver a streamlined, simple process for people navigating
the social housing system.
5.3 Shared equity
1.
What has been achieved to date?
Most shared equity schemes in Australia have only been operating for a relatively short period with fairly
limited coverage. These schemes tend to target low to moderate income households in both the social
housing and private rental market who could sustain mortgage payments (based on a share in ownership of
the property with another party) but who may not be easily able to access conventional mortgage products.
The most substantial schemes operate in South Australia, Western Australia and the Northern Territory. While
involving short and medium term costs to government, shared equity in the long term can result in positive
outcomes for government equity. For consumers, shared equity schemes can provide a pathway to home
ownership and equity growth that they may not otherwise achieve.
Page 31 of 52
Shared equity in action

South Australia’s HomeStart Finance has developed and implemented a shared appreciation loan, the
Breakthrough loan, which has been developed so that ongoing funding will be generated from the future returns
of appreciation gains. Approximately 500 new home owners have been assisted, who would not have otherwise
been able to enter or maintain home ownership. Other product developments include the “Brahma Green Loan”
that utilises capital (in the form of freehold land) provided by a third party. This model enables Local Government
and NGO’s to participate in affordable housing.

Queensland offers a shared equity loan product (Pathways Shared Equity Loan Product) to assist social housing
tenants to purchase a share in the property they are renting from the department. The tenant must have
sufficient income to purchase at least a 60% share in the property. The department retains ownership of the
remaining share. There is no income limit for the scheme but a tenant can only purchase the home they are
currently renting from the department. As at end of September 2009 the department had approved a total of 54
applications under the Pathways product.

Keystart Home Loans was established by the Western Australian Government in 1989 and was provided with
public subsidy in the first two years. Since then the organisation has been sustainable and profitable. Keystart
has assisted more than 70,000 people into home ownership through a suite of low deposit and shared equity
loans. The loans are targeted to people on low to moderate incomes, social housing tenants, people with
disabilities, Indigenous Australians and sole parents. A shared equity scheme to assist Department of Housing
tenants (and applicants) to purchase a share of their current rental property or an alternative property was
introduced in 1997. A total of 60 households were approved under the scheme in 2008/2009. In February 2007,
the State introduced the First Start shared equity scheme, initially targeting those on incomes up to $70,000.
First Start contributed effectively to housing affordability during a period of rapid escalation in property prices
and enabled 2,828 households to enter home ownership.

Housing
Ministers have noted a paper on this reform and the findings of an Australian Housing and Urban
Research Institute report that explores the potential for shared equity initiatives in Australia. Options which
might be considered include:
2.

facilitating information sharing about shared equity schemes between governments, private lenders
and investors;

fostering an environment that balances nationwide consistency and certainty in terms of taxation,
reporting and regulatory arrangements on the one hand, with local market responsiveness and
flexibility on the other; and

exploring the value of an umbrella national guarantee or support agreement under which different
arrangements can be accommodated to help share some of the risks and mitigate institution caution.
Next steps
In 2010 Housing Ministers will progress the development of national principles to underpin the development of
any new expanded home ownership and shared equity schemes. Housing Ministers will also put in place
measures to assess the long term outcomes of shared equity schemes to guide government policy and
decision making.
5.4 Seamless transitions to private rental and home ownership
1.
What has been achieved to date?
Housing Ministers are committed to improving opportunities for social housing tenants as their circumstances
change. Social housing tenants who wish to move and can afford to make the transition to private rental or
home ownership should be better supported to do so. All jurisdictions are committed to improving the social
and economic circumstances of tenants in social housing. However, they also acknowledge that for some
clients, moving from social housing into the private market can provide greater housing choice and open up
opportunities to live closer to jobs and services.
A range of initiatives are already in place to help low and moderate income earners (including but not
restricted to social housing tenants) to access private rental and home ownership, such as Commonwealth
Rent Assistance, bond loans, housing information and referrals; the First Home Owners’ Grant, Government
home finance schemes and stamp duty concessions.
Page 32 of 52
Assisting people into the private rental market

Housing NSW offers a range of transition assistance to its tenants including a Transition Assistance Information Kit
aimed at helping tenants make the move to private rental or home ownership; a Statement of Satisfactory Tenancy
which details how long they have been in public housing, where they lived and if they paid their rent on time; and
bond assistance through Rentstart Move which provides 75% of a private rental bond, lodged directly with the
Rental Bond Board.

Queensland’s RentConnect product involves local Department of Communities officers working with clients to
identify what assistance they might need to find and secure a private rental property. It provides information on
how to find a suitable property and how the private rental application process works. A RentConnect Loan (for
tenancy set up costs) and Tenancy Guarantee are presently being trialled. RentConnect was piloted at two Area
Offices in 2008-09 and is now being extended state-wide to a total of 14 sites.

Housing SA’s Private Rental Liaison Officer (PRLO) Program supports customers who are unable to secure
accommodation in the private rental market. PRLOs assist customers to find suitable accommodation, advise them
about their rights and responsibilities and refer them to organisations that will assist with their needs. To date over
1,500 customers have been referred to the program, with over 600 being housed.

In Western Australia the Department of Housing offers bond assistance and two weeks rent in advance as an
interest-free loan to help low and moderate income households obtain accommodation in the private rental market.
The scheme commenced in 1985 to assist people with limited finances obtain rental accommodation. It continues
to cater for a large number of low and moderate income households and provided 9,897 loans in 2008-09, many of
which went to public housing applicants who were registered on the waiting list. In addition, the Department
assists Indigenous Australians in private rental who are at risk of losing their tenancy and likely to become
homeless, by providing a loan under the Private Rental Aboriginal Assistance Loan scheme for their rental arrears.

Another means of improving client choice and mobility is through enhanced support services to assist social
housing tenants into private rental and home ownership. Housing Ministers noted that while the benefits of
existing private rental/home ownership assistance programs are generally regarded as significant and
valuable, further work is required to better target these to existing social housing tenants. The enhancement
of existing programs and the development of new ones would need to take into account:

the shortage of affordable private rental and limited access into home ownership for the client group;

the importance of sustainable transitions into private rental or home ownership;

perceived discrimination by private landlords/real estate agents; and

the incentives and disincentives to vacating social housing.
2.
Next steps
In 2010 Housing Ministers will consider further elements of national work and contributions from the
Commonwealth that might assist jurisdictions to develop expanded transitions to private rental and home
ownership for social housing tenants.
Housing Authorities may need to provide a more comprehensive, integrated package of supports as well as
providing more incentives to increase affordable housing supply. Further work is to occur at a national level
to assess the benefits of:

expanded rent to buy and shared equity schemes;

private rental support packages for social housing tenants;

a review of Commonwealth Rental Assistance;

a landlord enticement package to encourage lettings to vacating social housing tenants;

a mechanism to accelerate initiatives to put forward social housing tenants as prospective NRAS
tenants;

a home ownership support package for social housing tenants that may be suitable for home
ownership; and

improving the security of tenure in the private rental market.
Page 33 of 52
5.5 Creating incentives for public housing tenants to take up work
opportunities
1.
What has been achieved to date?
Social housing is prioritised to those in greatest need. Therefore those households that meet the criteria for
assistance are often those who have fewer opportunities in the job market. The income derived from
employment can open up opportunities and choice for individuals who wish to enter the private rental market.
There are, however, many deep-seated obstacles to the take up of employment by working age social housing
tenants.
Approximately 57% of working age public housing tenants are not participating in the workforce; that is they
are neither working nor seeking work. Of the remaining 43% of tenants currently in the labour force about:

25% are unemployed;

51% are working part time; and

only 24% are working full time
Figure 5: Levels of labour force participation and employment among public rental housing tenants aged under 65 years,
March – April 2007
Unemployed
24.5%
Tenants not in the
labour force
56.6%
Tenants in the
labour force
43.4%
Employed part time
51.3%
Employed full time
24.1%
Source: AIHW analysis of the National Housing Assistance Data Recovery Repository (2007 National Social Housing Survey)
A range of reforms and associated initiatives have been introduced over the past decade at the
Commonwealth, State and Territory levels to increase workforce participation among disadvantaged groups of
people, including social housing tenants. For working age social housing tenants, these measures include:

fixed rent periods for those accessing work;

eligibility and income assessment concessions;

tailored support for highly disadvantaged job seekers under Jobs Services Australia;

tenant employment and training opportunities through government projects/contracts;

urban renewal initiatives linked to place based employment initiatives;

other pre-employment initiatives and support services designed to assist people to engage more in
their community, build confidence and skills and manage other issues as a precursor for being able to
look for work; and

Aboriginal employment as part of the National Partnership Agreement on Remote Indigenous Housing.
Skilling social housing tenants for work
Page 34 of 52
Since 2005 Victoria’s Public Tenant Employment Program has assisted 522 public tenants into employment, including
25 Carlton residents. The program has assisted 1,097 public tenants into accredited training, including 56 Carlton
residents.
2.
Next steps
Housing Ministers agree on the importance of improving employment outcomes for public and social housing
tenants of working age who have the capacity to participate in the workforce. This requires a greater focus on
place based initiatives with local employers, support for social enterprises, and collaboration between
Commonwealth, State and Territory governments. Stronger links to the Australian Government’s social
inclusion agenda will be developed.
Action to progress initiatives in this area in 2010 will include:

greater engagement with the Commonwealth Department of Education, Employment and Workplace
Relations in the development of options to improve employment outcomes for social housing tenants;

specific proposals by jurisdictions to address local circumstances, including place based community
renewal activities; and

convening a Social Housing and Homelessness Employment Roundtable to foster innovation and
partnerships with the housing sector and the private sector.
5.6 Improved portability for public housing tenants
1.
What has been achieved to date?
Housing Ministers are committed to developing protocols to facilitate greater portability within jurisdictions for
public housing tenants. This includes policies to assist tenants to move to an area where job opportunities are
better or where family support is available, and requires portability to be integrated with existing waiting list
protocols. Breaking down barriers that limit the ability of public housing tenants to move can lead to better
client outcomes and avoid people becoming homeless when they abandon their public housing tenancies
because they need to move locations.
Transfer polices within jurisdictions

Some steps have been taken to make it easier for existing public housing tenants to move in order to improve
their life circumstances.

In QLD, NSW and WA tenants wanting to relocate for employment reasons are given priority for transfers.

Further work on priority transfers to accommodate the needs of social housing tenants across jurisdictional
borders is warranted.
Page 35 of 52
2.
Next steps
In 2010 Housing Ministers will consider options to improve the portability of tenants across States and
Territories. As a first step, officials will review existing transfer policies in relation to crossing jurisdictional
boundaries that are currently in place for other services, for instance disability services.
Portability may be impacted by other reform areas, particularly development of an integrated waiting list and
the transfer of stock to community housing organisations. Housing Ministers are keen to ensure that issues of
portability are considered in the development of reforms in these areas so that options for portability are not
decreased by these changes and opportunities to enhance portability are maximised.
Page 36 of 52
6. Stronger communities and tenancy management
Stronger communities and
tenancy management
Reducing concentrations for social disadvantage
Location of social housing stock
Rent setting and allocation policies
Compulsory rent deductions
Tenancy management plans for inappropriate behaviours
6.1 What are we trying to achieve from these reforms?
The National Affordable Housing Agreement aims to ensure that all Australians have access to affordable,
sustainable housing that contributes to social and economic participation.
Social housing has an important contribution to this outcome, which requires a renewed focus on stronger
communities and tenancy management so that:

social housing policies enable tenants to remain in their communities;

where social housing estates have poorer health profiles, lower levels of employment and education,
and higher rates of crime than neighbouring communities, there are strategies in place to improve
social outcomes;

investment plans better align the location of stock with employment, education, public transport,
health, community and other services;

rent and allocation policies, including policies on rent arrears, improve client and community outcomes
and the sustainability of the public housing system; and

tenants can live peacefully in communities that are safe and where residents who experience difficulty
can be linked to the support they need.
Housing led priorities and approaches may only solve some of the problems of place based disadvantage.
Whole-of-place responses involving key local stakeholders and three tiers of government (including all
relevant portfolios) and the coordination of all policy and program levers within a geographic space are
required to achieve significant and sustainable change and improved community outcomes. These reforms
also underpin efforts to reduce and prevent homelessness by providing support to sustain tenancies.
6.2 Reducing concentrations of social disadvantage
1.
What has been achieved to date?
All States and Territories are involved in actions to create mixed communities by reducing concentrations of
disadvantage that exist in some social housing estates. States and Territories ceased building large estates a
number of years ago and have undertaken a range of interventions that seek to reduce concentrations of
disadvantage through local community projects, community regeneration and large scale redevelopment of
housing stock and infrastructure.
Page 37 of 52
Long term investment to improve community outcomes

New South Wales - Bonnyrigg is a $733 million 15 year public-private redevelopment project in Western Sydney
to replace 833 social housing dwellings with 2,330 new homes, including 1,531 private homes. The project will
also improve public spaces and facilities.

South Australia - in the past decade, over 6,000 homes have been or are currently being redeveloped as part of
Housing SA’s urban renewal program. This includes Westwood and Playford North – two of the largest
redevelopment programs nationally.

Western Australia - has made significant inroads in estate redevelopment through its Urban Renewal program.
In June 2009, concentrations of public housing stock were reduced to an average (across metropolitan LGAs)
around four per cent. Since 1995, Urban Renewal programs have resulted in 4,216 affordable house sales,
3,856 property refurbishments for retention and sale of 2,124 blocks of land. Western Australia aims to extend
the Urban Renewal Program to town-based Indigenous communities in the north of the State.

Queensland - urban renewal programs target high-concentration social housing communities. Since 1998 the
Queensland Government has approved more than $115 million for 1,086 Community Renewal projects, with
additional total partner funding of more than $88.5 million. Initiatives have included innovative projects in areas
such as economic development and jobs, community amenities and facilities, sport and recreation, community
safety, family support, and education and training, including early childhood and computer literacy. The
Community Renewal program brought communities and governments together to find new solutions to local
needs.
A number of large scale, high cost redevelopments have been undertaken in recent years to reduce
concentrations of disadvantage. Such asset-focused strategies are often a significant element (and a costly
and resource intensive one) of community regeneration and large scale redevelopment approaches. The asset
management strategies of jurisdictions aim to ensure that social housing acquisitions are made in well located
areas, close to transport and services.
This objective also strongly informs the acquisition decisions of jurisdictions associated with the Nation
Building and Jobs Plan Social Housing Initiative. New social housing construction in locations with a high
concentration of social housing are not funded unless satisfactory management arrangements are in place to
ensure that concentrations of disadvantage are not created. Some larger developments have been approved
for funding where State and Territory governments have outlined plans to improve social integration.
In September 2009 Housing Ministers noted a paper on reducing concentrations of disadvantage and
endorsed six principles to guide jurisdictional work to address concentrations of disadvantage:

local factors should determine priorities for action;

a whole-of-place approach must be taken;

housing authorities must work across government, non-government agencies and industry to tackle
the causes of disadvantage;

strong engagement needs to be made with communities;

a socially inclusive approach to housing policy must be adopted; and

economic constraints and opportunities should be recognised.
Housing Ministers noted that all jurisdictions are pursuing policies to reduce concentrations of social
disadvantage. While housing programs and policies contribute to this goal, it must also be progressed through
a broader social inclusion agenda.
2.
Next steps
Housing Ministers have agreed that each jurisdiction will develop a high level strategy in 2010 to reduce
concentrations of disadvantage, noting that implementation of such an approach will take time and require
new sources of funding.
Housing Ministers will also scope work to enable a whole of Government process to identify national priority
locations to address disadvantage through coordinated efforts and investment. This is a large task and has the
Page 38 of 52
potential to make a substantial contribution toward improving social inclusion for priority communities.
future report to COAG will set out what is required to effect such change.
A
6.3 Location of social housing stock
1.
What has been achieved to date?
Housing Ministers are committed to better social and economic participation for social housing tenants by
locating housing closer to transport, services and employment opportunities.
The location and proximity to jobs, services and public transport, is a key factor that informs the acquisition
decisions in the asset management strategies of Housing Authorities and other housing providers. As a result,
generally speaking, all new social housing stock that is newly built or spot purchased tends to be in areas
close to jobs, services and transport, thereby facilitating community and workforce participation of residents.
This also allows those tenants with high support needs to access community services which help them to
maintain their tenancies.
The recent boost to social housing supply delivered under the Nation Building and Jobs Plan Social Housing
Initiative will provide for more social housing in well-serviced areas to better match client need. However,
more fundamental change in social housing stock requires divestment in areas of lower demand or poorer
amenity and may result in an overall decline in social housing stock numbers without additional funding.
Dwellings have only been approved for construction under the Social Housing Initiative where it has been
demonstrated that the location provides appropriate access to services.
2.
Next steps
During 2010 Housing Ministers have asked for further work to include the development of a set of national
principles to ensure that the goal of increasing social and economic participation of tenants is adequately
prioritised in decisions associated with:

the purchase and construction of stock;

redevelopments; and

investment and divestment in existing areas with social housing stock where access to services is
limited, for example whether to sell off stock in these areas or whether to encourage services to be
established in these areas to cater for client need.
State Housing Authorities and other social housing providers will build stronger collaborative links with
Planning Authorities; Transport Authorities and Local Governments to ensure plans for social housing
developments are an integral part of plans for the development of broader health, employment and transport
services and in strategies to support social inclusion.
6.4 Rent setting and allocation policies
1.
What has been achieved to date?
As part of the Nation Building and Jobs Plan Social Housing Initiative, jurisdictions agreed to consider options
to improve the efficiency and effectiveness of social housing, including better matching of tenants with
appropriate dwelling types and the introduction of equitable and sustainable rent setting policies that reflect
type and location of dwellings.
How rents are set can determine a housing provider’s income and viability, deliver differing levels of
affordability for tenants, create or respond to issues such as potential workforce disincentives and reflect roles
and responsibilities of government.
Allocations can determine not only who is allocated to what housing and when, but also impact on issues such
as concentrations of disadvantage, equity of access to housing and provide differing levels of consumer
choice.
Page 39 of 52
Housing Ministers have considered a paper which presents a series of options on rent setting and allocation
policies against criteria which includes simplicity, targeting, consistency across providers, consumer choice
and improving social inclusion.
Rent setting and allocation policies
2.

In 2006-07 jurisdictions collected $1,852 million in net rent which represented 38% of all income.

Real rent revenue is declining over time as social housing is more tightly targeted and household size (incomes)
decline.

Broad principles of social housing rent policy across jurisdictions are the same, with tenants who cannot afford
to pay a market rent paying a subsidised rent set at around 25% of income.

All jurisdictions operate some form of waiting list. VIC, QLD, SA and the ACT operate a segmented waiting list.
NSW, WA and the NT operate a date order policy supplemented by priority housing systems, TAS operates a
points based system, while QLD operates a single housing register as part of its One Social Housing System.

In NSW as at 30 June 2009, ten per cent of both public and community housing tenants were paying market
rents. In VIC as at 30 June 2009, just under 20% of public housing tenants were paying market rent; in TAS
the figure is 18%, while in QLD only around four per cent of public housing pay market rent.
Next steps
Housing Ministers have noted early work on alternative options for rent setting that better reflect the type and
location of dwelling provided, while maintaining affordability for tenants.
Housing Ministers are also
committed to examining how allocations policies can better match tenants with appropriate dwelling types.
The move towards a common waiting list within jurisdictions, the subject of one of the other housing reforms,
will support this goal by offering clients a greater choice of dwelling types. Options include providing tenants
with the opportunity to choose between a number of vacant dwellings with eligible applicants then able to bid
on the dwellings of most interest to them. Local allocations policies could also be tailored to specific locations
to address areas of social disadvantage and diversify the tenant mix.
Housing Ministers have noted early work on these options and have directed officers to provide further advice
on options and their potential impacts in 2010.
6.5 Compulsory rent deductions
1.
What has been achieved to date?
The Commonwealth has worked with States and Territories to develop a Compulsory Rent Deduction
The objective of such a scheme is to streamline payment of rent and thereby avoid evictions for non
of public housing rents. For tenants, such a scheme could prevent possible homelessness, while
State Housing Authorities to improve the efficiency of public housing management and redirect
savings to social housing programs.
Scheme.
payment
enabling
resource
The scheme was originally intended to apply to all public housing household members contributing to rent and
in receipt of Commonwealth social security payments, replacing the current Voluntary Rent Deduction
Scheme. However legal advice from the Australian Government Solicitor indicated that the unintended effects
of the original Compulsory Rent Deduction Scheme would render it unworkable.
Consequently, Housing Ministers are now considering options for the retention of the voluntary scheme and
the introduction of a revised Compulsory Rent Deduction Scheme which minimises unintended effects.
The revised Compulsory Rent Deduction Scheme would allow a proportion of a tenant’s social security
payments (after other non voluntary deductions) to be deducted for a range of housing payments. The
proposed Compulsory Rent Deduction Scheme would run concurrently with the voluntary scheme.
Operational details including the maximum level of the deduction cap (reflecting the balance between
Page 40 of 52
protecting tenant income and maximising state housing efficiency) will need to be agreed with State and
Territory Governments.
2.
Next steps
Implementation will be commencing in 2010.
6.6 Tenancy management plans for inappropriate behaviours
1.
What has been achieved to date?
Anti-social behaviour has been identified as a significant issue in all jurisdictions and all housing authorities
have developed measures to introduce greater clarity and consistency in their responses.
There is
considerable alignment in philosophies across jurisdictions, although a range of approaches is used.
Most jurisdictions are attempting to develop solutions to anti-social behaviour through a ‘two-pronged’ or dual
approach, involving both action to support tenants and address the underlying causes of the problem, and the
use of sanctions to protect the wider community. These measures include:

acceptable behaviour agreements or conditional orders;

probationary tenancies;

specialist officers or teams to manage anti social behaviour complaints and engage support services;

restrictions and conditions on ‘re-entry’ for tenants with a history of anti-social behaviour;

partnerships, memoranda of understanding and accords to facilitate multi-agency responses; and

sanctions.
Page 41 of 52
Defining anti-social behaviour

The Australian Capital Territory has no formal statutory definition in its tenancy legislation of “anti-social
behaviour”. However the Residential Tenancies Act 1997 specifies at standard residential tenancy term 69 that
a tenant must not cause or permit nuisance or interference with the quiet enjoyment of the occupiers of
nearby premises. Also Housing ACT policy provides a working definition of the equivalent term ‘disruptive
behaviour’, describing this broadly as behaviours that cause nuisance or annoyance to sections of the
community over a period of time and have an adverse or disturbing effect on that community.
There are obvious advantages in having a clear definition provided this is realistic and flexible enough to
address most situations that arise in this context.

Housing Tasmania has implemented a program in recognition that inappropriate behaviour is often a product
of a deeper need, for example a mental health issue. The program provides support to tenants that require
assistance to maintain their tenancies. It includes clear guidelines to Housing Tasmania staff on how to
identify tenants that require additional support and what to do to ensure these needs are met through
coordination planning, referral and support. Under this process, the absolute minority of cases result in
eviction.

In Western Australia, a trial of an Antisocial Behaviour Intervention Team is currently underway in the South
East Metro Region (established April 2009).The trial targets those tenancies subject to ongoing or escalating
substantiated complaints of anti-social behaviour. The team works with the tenant to address the problems
early in the process before they get out of hand. The key element in the process is ensuring that the tenant
understands that the behaviour is unacceptable and that they need to take responsibility for ensuring that the
problems do not continue.
The team aims to:





Identify the cause of the problem/s;
Establish what the solutions to those problems will be;
Put in place an action plan including engaging all necessary support agencies;
Get agreement from the tenant on the proposed course of action; and
Clearly notify the tenant as to the consequences should they fail to modify their behaviour.
The team has engaged with and managed 35 tenancies exhibiting the most severe and ongoing anti-social
behaviour in the region and has been successful in sustaining 33 of these tenancies.
2.
Next steps
Jurisdictions will share information on best practice strategies to respond to inappropriate tenant behaviours.
The strategies include early interventions being utilised to deter inappropriate behaviour and sanctions that
may be imposed if behaviour is not modified.
Page 42 of 52
7. Homelessness reforms
Homelessness
Integration of homelessness services with mainstream services
Homelessness supporting quality services
Homelessness data collection and management
Workforce development strategy
7.1 What are we trying to achieve from these reforms?
The National Partnership Agreement on Homelessness will quicken Australia’s long term response to
homelessness through achievement of the following outcomes:

fewer people becoming homeless and fewer of these sleeping rough;

fewer people becoming homeless more than once;

people at risk of or experiencing homelessness maintaining or improving connections with their
families and communities and maintaining or improving their education, training or employment
participation; and

people at risk of experiencing homelessness being supported by quality services, with improved
access to sustainable housing.
Under the National Affordable Housing Agreement jurisdictions also committed to the outcomes that people
who are homeless or at risk of homelessness will achieve sustainable housing and social inclusion.
People who experience homelessness are not a homogenous group so our responses cannot be uniform or
assume that the provision of accommodation alone is sufficient. Housing is an important vehicle for social
inclusion, as is an appropriate service system to address the other needs of homeless people, such as
education and employment opportunities and support systems. This group of reforms contributes to the goal
of a better homelessness system and building strong linkages with the housing and other mainstream
systems.
7.2 Integration of homelessness services with mainstream services
1.
What has been achieved to date?
Many homeless people have multiple and complex needs and are often navigating complex service systems,
for example Centrelink, and the justice, child protection and mental health systems. This vulnerable group
needs support to access the services they need. The most effective outcomes will be achieved when this
assistance is delivered in a coordinated way and referrals and duplication of effort across the system is
reduced.
Most jurisdictions have some measures to integrate services in their Implementation Plans for the National
Partnership Agreement on Homelessness. The Commonwealth is also finalising its Implementation Plan which
will be used to drive service integration across Commonwealth agencies.
Page 43 of 52
Progressing the National Partnership on Homelessness

Implementation plans have been developed in all States and Territories.

Service integration measures include:
2.
o
New South Wales will develop Regional Homelessness Action Plans to use and build on existing cross-agency
structures. Regional Plans will include all elements of the service system and use regional data on the prevalence
of homelessness.
o
Victoria will implement a cross-government approach to assist people exiting mental health services and the
justice system to sustain housing with intensive effort to link people into psychosocial and clinical outreach,
personal support and employment and education opportunities.
o
Queensland will establish non-government positions to enhance the capacity of local service networks to respond
more effectively to homelessness. These positions will assist in achieving greater collaboration and integration of
service delivery at a local level. Government agencies will work in partnership with the non-government positions
to improve service delivery and maximise outcomes from existing and new investment across government and
community.
o
South Australia will develop a service coordination and information database, enabling all agencies having contact
with people who are homeless to have access to a centralised intake and information system.
o
All Western Australian initiatives under the National Partnership have a component of brokerage funding to
ensure services are responsive to client needs and to facilitate an integrated approach between specialist
homelessness services and mainstream agencies.
o
Tasmania will develop a State Homelessness Plan with the key tenet that homelessness is a whole of government
and whole of community responsibility.
o
The Northern Territory will develop a housing and homelessness service coordination mechanism that links clients
and providers in the Darwin region.
o
The Australian Capital Territory will introduce a Centralised Intake Service for Homelessness Services and a
common waiting list for public and community housing that will be operational as of July 2010.
Next steps
Pending availability of the new homelessness data collection, progress will be assessed from annual reviews of
implementation plans, including the Commonwealth Implementation Plan, proxy measures and relevant
national datasets. Exemplary practice and gaps in the service integration effort will be identified through both
formal reporting and ongoing monitoring and information sharing as implementation proceeds.
In 2010 Housing Ministers will consider a report on the progress of service integration and what further action
may be required.
7.3 Homelessness - supporting quality services
A national quality framework presents an opportunity to reduce homelessness through higher quality and
better integrated service delivery. States and Territories have put in place a range of measures to improve the
quality of service for those who are homeless or at risk of homelessness, but quality is assessed, assured and
rewarded differently across jurisdictions and few extend to mainstream services which most homeless people
will come in contact with.
Jurisdictions existing quality efforts provide a platform to build a more
comprehensive quality framework which sets clear expectations for service and provide an assurance of good
quality services for homeless people.
1.
What has been achieved to date?
The Australian Government’s White Paper: The Road Home committed to reviewing the Supported
Accommodation Assistance Act so principles of quality service provision are in legislation to ensure that people
who are homeless receive quality services and adequate support. A Parliamentary Committee will provide
advice on the scope and content of new homelessness legislation by December 2009. The Australian
Government intends to consult with jurisdictions and the sector about the legislation.
Page 44 of 52
States and Territories have used a range of measures to improve quality tailored to jurisdictional needs and
priorities, but quality is developed, assessed, assured and rewarded differently.
A National Quality Framework for Homelessness Services
2.

Quality improvement processes are in place across the country.

Elements of the Commonwealth’s Supported Accommodation Assistance Act 1994 together with jurisdictions’
existing quality efforts provide a platform to build a more comprehensive framework to reflect the National
Affordable Housing Agreement and National Partnership on Homelessness reforms.
Next steps
Housing Ministers agreed in March 2009 that quality reforms should be a priority item on the national work
program. Housing Ministers are committed to ensuring people at risk of or experiencing homelessness are
supported by quality services, with improved access to sustainable housing. National cooperation in reviewing
quality frameworks, defining service standards, identifying the levers to improve service quality and
promoting a consumer focus is integral to improve services for this group of vulnerable Australians.
Housing Ministers have commissioned further work on developing a National Quality Framework which will
consider harmonisation of State and Territory approaches to performance-based contracting, recognition of
best practice, workforce development, funding incentives and training and support. Important considerations
include the effectiveness and role of voluntary or compulsory accreditation systems, service charters for
service providers, contract-based or legislated service standards and access to complaints mechanisms.
Public consultation on approaches will be undertaken in 2010, together with a regulation impact statement to
identify the risks, costs, benefits and transition impacts of such a framework.
7.4 Homelessness - data collection and management
1.
What has been achieved to date?
Housing Ministers have agreed to the performance indicator data specifications for the National Affordable
Housing Agreement. The Australian Institute of Health and Welfare is completing consultations with
jurisdictions to scope the new homelessness data collection, including which services to homeless people can
be captured by the new data collection and which services will be covered by other data collection methods.
Housing Ministers have agreed to fund and continue the current Supported Accommodation Assistance
Program data collection until June 2011 when the new collection will commence.
Housing Ministers have noted that the Australian Bureau of Statistics (ABS) is leading a team undertaking an
expert review of the methodology used to derive census counts of the number of homeless people based on
the Census. Data collection by jurisdictions under the National Partnership Agreement on Homelessness is
being reviewed by the Commonwealth and jurisdictions to ensure that reporting is on track.
2.
Next steps
Housing Ministers will consider the scope of the new collection by early 2010 and secure agreement on
collection methods by June 2010. Communication and training for the Sector for the transition to the new
homelessness collection will be completed by the first half of 2011 in readiness for the new collection system
to start on July 2011.
The ABS will provide advice on how to improve the quality of the 2011 Census homelessness count for
consideration by Housing Ministers in mid 2010.
7.5 Workforce development strategy
Page 45 of 52
1.
What has been achieved to date?
Housing Ministers are committed to increasing the capacity of the service response, developing a high quality
workforce, retaining and attracting staff, and improving and enhancing career paths. This work is being
advanced through the response to the Australian Government’s White Paper on Homelessness and through
jurisdictional responses to the homelessness agenda.
2.
Next steps
Jurisdictions are committed to building on existing work in a way that does not place pressure on wages, but
delivers a strategy to appropriately supplement work on supporting the provision of quality services and
integrating homelessness services and mainstream services. Ways in which the workforce may be further
developed could include efforts to improve the professionalisation of the workforce, improve career structures
and utilise advance practitioners.
The Australian Government has agreed to synthesise information provided by jurisdictions in relation to
research on workforce development and/or resources into an issues paper for discussion by Housing Ministers
in 2010.
Page 46 of 52
8. Indigenous housing reforms
Indigenous
Indigenous access to mainstream housing and home ownership
Indigenous municipal services
8.1 What are we trying to achieve from these reforms?
COAG has agreed that closing the gap on Indigenous disadvantage will be a major commitment of
governments and has set six targets, in relation to health, education, employment and overall life expectancy.
Housing Ministers recognise that achieving better outcomes in these areas is dependent in part on substantial
and lasting improvements in housing and reducing the level of homelessness experienced by Indigenous
Australians. The National Affordable Housing Agreement specifically has committed jurisdictions to providing
Indigenous Australians with the same housing opportunities as other Australians, as well as improved amenity
and reduced homelessness and overcrowding.
We want to make sure that our housing programs meet the needs of Indigenous Australians and their
communities. This will require a nationally coordinated effort between all levels of government. The outcomes
for Indigenous Australians across all housing and homelessness programs will need to be captured during
implementation to enable effective measurement of housing and homelessness investment on improving
Indigenous disadvantage.
8.2 Indigenous access to mainstream housing and home ownership
1.
What has been achieved to date?
In 2009, Housing Ministers considered a report outlining approaches that could improve Indigenous
Australians’ access to mainstream housing and that identified schemes to increase access to housing finance
by Indigenous Australians. Ministers agreed that the report should also consider issues associated with shared
land title and how this may impede access to mainstream housing and home ownership.
The report shows that Indigenous Australians compared to non Indigenous Australians are:

over represented in social and public housing;

half as likely to own their own home;

experiencing high levels of overcrowding in urban and regional areas; and

lower earners, with 70% of Indigenous Australians in the lowest two income quintiles.
Indigenous Australians are also over represented in the homeless population. Indigenous Australians make up
nine per cent of the homeless population, but only two per cent of the general population.
We are driving a major reform agenda in remote housing, which requires secure tenure, rent collection and
maintenance reforms. All States and the Northern Territory Government have agreed implementation plans
and joint governance arrangements in place to drive delivery of the outcomes required under the National
Partnership Agreement on Remote Indigenous Housing. Additionally, in some jurisdictions, progress has been
achieved in the fast tracking of legislation to improve asset security and housing management.
Page 47 of 52
Implementing the National Partnership Agreement on Remote Indigenous Housing

The Agreement will provide up to 4,200 new houses and around 4,800 major refurbishments and repairs in
remote communities.

During 2009-10 jurisdictions have undertaken to acquire or construct 300 new homes and complete 1000
refurbishments. This includes:
o
50 new houses and refurbishment of 50 houses in New South Wales;
o
65 new houses and refurbishment of 150* houses in Queensland;
o
44 new houses (includes four temporary dwellings) and refurbishment of 63 houses in South
Australia;
o
75 new houses and refurbishment of 150* houses in Western Australia;
o
69 new houses and refurbishment of 610 houses in the Northern Territory; and
o
two new houses and refurbishment of 12 houses in Tasmania.

Capital works activity is well underway in Western Australia, South Australia, the Northern Territory and New
South Wales and improved property and tenancy management arrangements are commencing across all
jurisdictions.

South Australia has already signed a 50 year ground lease with the Anangu Pitjantjatjara Yankunytjatjara Council
Executive which provides security of tenure to support substantial government investment in housing and
infrastructure. Construction in two priority communities, Amata and Mimili, will progress significantly during 200910. Construction has already commenced on seven new dwellings in Mimili and Fregon.


Queensland has established a Remote Indigenous Land and Infrastructure Program Office to accelerate housing
investment in Indigenous communities and lead work to negotiate State leases. Due to the relationship between
leases and funding for new construction and upgrades under the National Partnership Agreement on Remote
Indigenous Housing work programs across a number of agencies are being closely aligned. Queensland’s Capital
Works Plan includes the upgrading of 493 dwellings in 2009-10. Negotiation of 40 year (min) leases and
resolution of land tenure and Native Title for land to build new housing and carry out major upgrades is to occur
concurrently. Queensland’s Property and Tenancy Management Plan 2009-10 includes:
o
a comprehensive rolling program of repairs and maintenance currently in place, including both
planned and responsive maintenance;
o
a public housing-like model of tenancy management, with the Department of Communities acting as
agent for the council, currently in place for seven out of the 14 councils; and
o
a shared tenancy management model currently in place/agreed for the two largest councils. The
department manages the housing register, rent assessment and collections, with tenant allocations
agreed with council.
In Western Australia the Aboriginal Housing Legislation Amendment Bill 2009 was introduced into Parliament in
October 2009.
* Both Queensland and Western Australia have indicated that they may exceed this expected refurbishment target
in 2009-10
2.
Next steps
Housing Ministers have agreed that increased effort is needed to increase Indigenous Australians’ access to
private rental housing and home ownership and requested housing officials to report back in 2010 with a
comprehensive set of strategies and actions to achieve this.
Housing officials have also agreed that a continued focus on Indigenous outcomes is also required in urban
and regional areas and to the capture and reporting of Indigenous outcomes in jurisdictional implementation
plans of the National Affordable Housing Agreement and linked National Partnership Agreements.
Page 48 of 52
8.3 Indigenous municipal services
1.
What has been achieved to date?
Under the National Partnership on Remote Indigenous Housing it was agreed that the Commonwealth, the
States and the Northern Territory would work towards a report back to COAG by December 2009 with respect
to municipal and essential services in remote areas.
It was also agreed at the Housing Ministers’ Conference in March 2009 that the municipal and essential
services national audit will inform clearer roles, responsibility and funding for municipal and essential services
to the States and the Northern Territory.
The audit strategy was developed earlier this year and agreed to by all jurisdictions. The Australian
Government is currently scoping the audit in detail prior to the collection of data within the Remote Service
Delivery National Partnership priority communities and a representative sample of Indigenous communities
where the Australian Government currently funds municipal and essential services.
2.
Next steps
The audit is expected to be completed in March 2010.
The results of the audit will be reported to Housing Ministers and COAG in 2010 with further strategies to
address gaps in service and infrastructure against agreed standards and will provide a proposal for clearer
roles and responsibilities and funding for the delivery of municipal and essential services.
Page 49 of 52
9. Measurement and performance
Measurement and
performance
Financial and reporting standards
Performance indicators for social housing stock
Improved tenancy management and maintenance benchmarks
9.1 What are we trying to achieve from these reforms?
The policy reforms arising from the National Affordable Housing Agreement and its associated National
Partnership Agreements, will create a more diverse social housing system in Australia. Underlying the new
system are principles of competitiveness, choice, transparency and consistency between providers.
An essential requirement of the new social housing system is having the information available that will allow
performance to be measured, and in such a way that comparisons can be readily made against agreed
benchmarks and between social housing providers across jurisdictions.
Increased transparency and consistency of reporting is a key reform highlighted in both the National
Affordable Housing Agreement and the Nation Building and Jobs Plan Social Housing Initiative.
A robust framework of reporting and performance measures will drive continuous quality improvement with a
focus on improving outcomes for clients and the communities served.
9.2 Financial and reporting standards
1.
What has been achieved to date?
The Intergovernmental Agreement on Federal Financial Relations provides direction on performance reporting
for all jurisdictions.
In 2009 Housing Ministers identified key areas where further work will be done to further improve consistency
in financial statements. These are:
2.

depreciation policies;

asset valuation methods;

threshold for capitalisation of assets (and maintenance expenses);

transfer from the asset valuation reserve to equity on sale of dwellings; and

unit cost comparability.
Next steps
Housing Ministers have directed housing officials to develop a strategy for consultation on financial and
reporting standards with the community housing sector and other stakeholders in 2010. Advice from the
COAG Reform Council will be sought on how financial reports can be used to improve transparency in the
system.
9.3 Performance indicators for social housing stock
1.
What has been achieved to date?
Housing officials have developed an initial set of seven indicators to measure how well social housing stock
meets the needs of tenants.
Page 50 of 52
The data indicators are:

tenant satisfaction with amenity;

tenant satisfaction with location;

the proportion of dwellings that match household size;

the proportion of dwellings that are underutilised;

the proportion of dwellings that are overcrowded;

the proportion of dwellings occupied; and

turnaround time.
Specifications for the performance indicators have been developed and provide a clear and objective analysis
to meet public accountability.
2.
Next steps
Housing Ministers have directed housing officials to progress a series of performance indicators in 2010 which
will form part of a larger set when the policy settings have been defined and all reforms have been agreed.
9.4 Improved tenancy and management benchmarks
1.
What has been achieved to date?
In 2009 Housing Ministers noted a set of draft tenancy management and maintenance standards that can be
benchmarked across the social housing sector.
The development of improved tenancy management and maintenance standards and benchmarks is essential
to compare and contrast delivery across different forms of social housing. The proposed management
functions for benchmarking that have been identified are:

rent management – rent policy consistency; rent collection management; arrears management;

management of maintenance – responsive maintenance; planned maintenance; social housing stock;

eligibility and access – housing assistance for clients with identified priority needs;

efficiency and utilisation – vacated dwellings re-tenanted; social housing stock well utilised;

sustaining tenancies – affordable rent; policies to optimise sustainability;

location of stock – location to meet need; and

tenant satisfaction – housing assistance meets tenant needs.
Under the National Affordable Housing Agreement, all jurisdictions have agreed to the continuous
improvement of data. New robust measures will enable the Government to present strong evidence that
social housing is being provided in an efficient and transparent manner.
2.
Next steps
In 2010 Housing Ministers will progress the further development of measures that will effectively capture
and identify the performance of social housing providers against nationally agreed benchmarks as well as
measuring and improving housing outcomes for tenants.
Page 51 of 52
Page 52 of 52