Support payment for renters on Treasury's housing options list
A table of contents which was accidentally sent to the ABC has revealed Treasury told Ms O'Neil and Treasurer Jim Chalmers the government's signature target of 1.2 million new homes in five years "will not be met".
Mr Chalmers has defended the target, admitting more work was needed but insisting it was achievable.
"We will need more effort to reach that substantial, ambitious housing target," he told reporters on Monday.
"There are a whole range of things that we're doing, and that Clare [O'Neil] is doing, which will make an important contribution to achieving that target. But we'll need to do better, and we'll need to do more, and the advice just reflects that."
Headings from the contents table show Treasury made nine "recommendations" of housing policies for Ms O'Neil to consider. While the materials do not include those recommendations in full, they give an extended glimpse at the department's focuses.
Review of Commonwealth Rent Assistance
One of the nine recommendation areas focused on support for renters, listing several "policy reform opportunities" including a review of Commonwealth Rent Assistance, a supplement for welfare recipients who rent.
The supplement was increased by Labor in its first term, but economists and welfare advocates say it is still insufficient. Matthew Bowes, a Grattan Institute housing expert, told the ABC it should increase by 50 per cent for singles and 40 per cent for couples.
The current payment levels are $212 per fortnight for singles and $199.80 for couples.
"For those who are even on an Age Pension rate, which is one of the more generous income support payments, they can afford less than 10 per cent of one-bedroom homes as a single person in Melbourne or Sydney," Mr Bowes said.
"That's a sign of a pretty inadequate income support system for renters."
Another opportunity to help renters raised by Treasury was extending the Better Deal for Renters, a program to harmonise rules for tenants in different states and territories.
It is not clear whether these reform opportunities or any others identified in the subheadings were directly recommended by Treasury, only that they were presented to the minister.
Mr Bowes said the Better Deal for Renters had already made progress on stamping out no-grounds evictions, but that there was scope to better protect renters from evictions with grounds.
"We see people who want to move family members into their homes or empty them to sell. Clearly the landlord needs to have their rights protected but we also need to make sure we don't see tenants evicted without their needs taken into consideration."
Improve the speed of the HAFF
Another reform idea pointed to concerns about the pace of the rollout of a key Labor housing policy legislated in the last term, the Housing Australia Future Fund (HAFF).
The first of grants from that $10 billion fund were unveiled late last year, promising to support the "availability" of up to 13,000 homes.
But by the time of the election in May, none of those homes had been built, and the progress of construction remains slow even as the second round of grants has been allocated.
Ms O'Neil has consistently blamed the Coalition and the Greens for delaying the passage of legislation to set up the HAFF, but a Treasury heading which read "focus the HAFF on delivering more houses, quickly" hints at internal frustrations.
Housing Australia, the agency tasked with administering the HAFF, was slated for a "review", and Treasury identified "challenges" with its responsiveness, oversight, capability and speed.
'Adjust' the target and 'reallocate' housing grants
Another of Treasury's nine recommendation areas is related to the target itself — officially called the National Housing Accord — and the accompanying $3 billion package of federal grants for states and territories who achieve their share of the target.
As well as identifying an opportunity to "adjust the 1.2 million homes target", Treasury also briefed the minister on the possibility she could "reallocate" the grants.
In a recommendation area named "barriers to housing supply", the department raised labour shortages, "low and declining" housing sector productivity, regulatory setting and the "dysfunctional" model for funding enabling infrastructure.
The last of those refers to pipes, sewers, roads and other connections required to "unlock" new housing, whether apartments or new homes on the urban fringe.
Labor allocated some grants to local councils in the first term to support infrastructure of that kind, but the Coalition went further at the election with a proposed $5 billion enabling infrastructure fund focused on the urban fringe.
The department also identified opportunities to "improve the delivery of social and affordable housing finance to the First Nations cohort", but the headlines do not indicate what specific improvements were raised.
Mr Bowes said housing remained "a difficult space" for the federal government to act in and said it was "positive" to see Labor's appetite for reform.
"A lot of the levers remain with the states … I think ultimately what the Commonwealth should be doing is recognising states who are engaging in meaningful reforms that boost the amount of homes that can be built in inner city areas with low amounts of supply."
Treasury also advised Labor on the implementation of its election policies, including its $10 billion housing construction fund, its expanded 5 per cent deposit guarantee for first homebuyers, and its pledge to fast-track qualifications for 6,000 construction workers.
The ABC has contacted Ms O'Neil for comment on the briefing she received.
Read the headings of Treasury's policy advice on housing in full
Chapter 4: Fostering growth and improved productivity
...
4.8 More homes for Australians State of play
State of play Your agenda
Your agenda Opportunities to build on your agenda Continue to focus on increasing market supply Leverage existing policies and commitments to incentivise state and territory reform Improve labour productivity by getting regulatory settings right Increase labour supply through skill development and improvements to the migration system Deliver a coherent and well-prioritised forward housing agenda The 1.2 million new homes target will not be met
Opportunities to build on your agenda To Clare O'Neil
Chapter 3: Policy Briefs
3.0 Recommendations
Summary of recommendations National Housing Accord and New Homes Bonus
National Housing Accord and New Homes Bonus Barriers to Housing supply
Barriers to Housing supply Commonwealth-state relations
Commonwealth-state relations Housing Australia and successful delivery
Housing Australia and successful delivery Finance for social and affordable housing
Finance for social and affordable housing Home ownership
Home ownership Rental affordability and conditions for renters
Rental affordability and conditions for renters First Nations housing
First Nations housing Housing research
3.1 National Housing Accord and New Homes Bonus State of play
State of play Policy reform opportunities Adjust the 1.2 million homes target Reallocate the New Homes Bonus
Policy reform opportunities Recommendations
3.2 Barriers to housing supply State of play
State of play Labour shortages
Labour shortages Low and declining productivity
Low and declining productivity Planning and other regulatory inefficiencies
Planning and other regulatory inefficiencies Dysfunctional enabling infrastructure funding model
Dysfunctional enabling infrastructure funding model Policy reform opportunities Increasing labour supply to build more homes Increasing labour productivity A more fit for purpose planning and regulatory framework Funding enabling infrastructure more sustainably:
Policy reform opportunities Recommendation
3.3 Commonwealth-state relations State of play
State of play Table 3.1 Housing-related ministerial councils
Table 3.1 Housing-related ministerial councils Table 3.2 Current major housing-related Federation Funding Agreements
Table 3.2 Current major housing-related Federation Funding Agreements Policy reform opportunities Convening an ad-hoc Ministerial forum of Commonwealth and state housing, planning and building ministers, to agree on shared priorities for Commonwealth-state relations to support housing. Leveraging the new National Housing Delivery Coordinator to deliver your $10bn commitment to build 100,000 homes
Policy reform opportunities Table 3.3 Sample of interim Coordinator's findings
Table 3.3 Sample of interim Coordinator's findings Bilateral agreements
Bilateral agreements Recommendations
3.4 Housing Australia and successful delivery State of play Challenge 1: The balance between independence, responsiveness to policy, and Ministerial oversight. Challenge 2: Organisational governance and capability Challenge 3: Speed and coordination of program delivery
State of play Policy reform opportunities Review Housing Australia Take steps to improve oversight and re-set the relationship with the CEO and Board.
Policy reform opportunities Recommendations
• 3.5 Finance for social and affordable housing State of play
State of play Your agenda
Your agenda Opportunities to build on your agenda Focus the HAFF on delivering more houses, quickly Integration and improvement of Housing Australia's offerings Lead a sustainable and modern CHP sector
Opportunities to build on your agenda Recommendations
3.6 Home ownership State of play
State of play Implementing your agenda
Implementing your agenda Help to Buy
Help to Buy Opportunities to build on your agenda
Opportunities to build on your agenda Recommendations
3.7 Rental affordability and conditions for tenants State of play
State of play Policy reform opportunities Undertake a review of Commonwealth Rent Assistance (CRA) Extend A Better Deal for Renters Fostering institutional investors
Policy reform opportunities Recommendations
3.8 First Nations housing State of play Summary of current policies and programs:
State of play Table 3.4: Current Commonwealth policies and programs for First Nations housing
Table 3.4: Current Commonwealth policies and programs for First Nations housing Policy reform opportunities Improve the delivery of social and affordable housing finance to the First Nations cohort
Policy reform opportunities Recommendation
3.9 Migration and housing State of play
State of play Your agenda
Your agenda Policy reform opportunities
3.10 Housing research State of play
State of play Policy reform opportunities Deepening the evidence-base through NHSAC research Better targeting housing research
Policy reform opportunities Recommendations
Chapter 4: Implementing your Agenda
4.1 Priority decisions (30 days) Table 4.1: First 30 days — urgent actions
4.2 The next 12 months Table 4.2: The next 12 months
Table 4.2: The next 12 months Housing supply
Housing supply Social and Affordable housing
Social and Affordable housing Home ownership
Home ownership Other
Other Implementation Briefs
4.3 $10 billion housing delivery fund Legislation
Legislation Implementation considerations Proposal scope Next steps Opportunities for consideration Risks and challenges
Implementation considerations
4.4 Expanding the Home Guarantee Scheme Legislation
Legislation Implementation considerations Constitutional considerations Banking competition considerations Start date Sensitivities
Implementation considerations
4.5 Fast track qualifications for 6,000 tradies Legislation
Legislation Implementation considerations
4.6 Contact details for industry and government stakeholders Statutory housing bodies
Statutory housing bodies Housing Industry
Housing Industry Community and First Nations housing
Community and First Nations housing Housing finance
Housing finance Housing research
4.7 State and territory Housing and Homelessness Ministers contact details
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