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ABC News
2 days ago
- Business
- ABC News
Support payment for renters on Treasury's housing options list
Reviewing the welfare payment for low-income renters is one of several ideas presented to Housing Minister Clare O'Neil after the election to reset Labor's housing agenda. 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
The Guardian
2 days ago
- Business
- The Guardian
Chalmers urges opposition not to treat productivity roundtable like ‘extension of question time'
Jim Chalmers has warned the opposition will have no credibility with voters or key economic decision makers if it plays politics at next month's productivity summit and has called on the Coalition to work with Labor to boost growth and prosperity. The treasurer said the summit would be organised around themes of resilience, productivity and sustainability, chosen to reflect the dramatic challenges facing Australia today, including the technological shift, the energy transition, geopolitical shocks and demography. Chalmers said the shadow treasurer, Ted O'Brien, and the opposition leader, Sussan Ley, faced a key test with the 19-21 August talks at Parliament House, which will consider tax reform and ways to lift living standards. Sign up for Guardian Australia's breaking news email 'If Ted O'Brien comes to the reform roundtable and treats it as an extension of question time, I think that will go down pretty badly in the room,' he said. 'I think a lot of the commentary, whether it's from Ted O'Brien or Sussan Ley, I don't think they are by their nature constructive, collaborative types.' The Reserve Bank governor, Michele Bullock, will address the first day of the talks, followed by productivity commissioner, Danielle Wood, and Treasury secretary Jenny Wilkinson. Already the government has invited trade unions, business groups and sought submissions from regulators and government departments. O'Brien will represent the opposition at the cabinet room table. The summit will guide Labor's second term agenda, which will include skills, the net zero energy transition, workforce pressures and the care economy. Chalmers said he believed regular economic volatility and uncertainty for governments and decision makers had replaced structural predictability to become business as usual. He made the comments in an interview for Guardian Australia's Australian Politics podcast, released on Tuesday. O'Brien told the podcast earlier this month a stronger economy was critical to helping households. Sign up to Breaking News Australia Get the most important news as it breaks after newsletter promotion 'Without a strong economy, Australia will become a poorer, weaker and more dependent nation,' he said. The treasurer will meet G20 finance ministers in Durban, South Africa, later this week, with US President Donald Trump's growing trade war and geopolitical tensions in the Middle East and Europe set to dominate talks. Chalmers is expected to hold one-on-one talks with counterparts from the UK, Canada, Japan, Germany and Indonesia while at the summit. 'The best defence against all of this uncertainty in the global economy, all this unpredictability and volatility which comes from either the trade tensions or conflict in the Middle East, conflict in eastern Europe, the best defence against all of that is more engagement, not less,' Chalmers said. 'More diverse markets, not less diverse markets, and also more resilience in our own economy.' 'Obviously trade will be a big part of the story, supply chains, critical minerals, how we get capital flowing more effectively in the global economy. These are the sorts of things that I expect to be talking with them about.'
News.com.au
2 days ago
- Business
- News.com.au
Jim Chalmers urged by Treasury to increases tax, urged Australia won't make 1.2 million homes target
Jim Chalmers has brushed off hints of a scandal after advice from Treasury which urged the Treasurer to increase taxes to return the budget to a 'sustainable' position was accidentally made public. First reported by the ABC, the details were mistakenly revealed in an unredacted Freedom of Information request submitted by the broadcaster and shared in an incoming government brief issued by Treasury after Labor won the May 3 election. Although Treasury requested the documents be deleted and unpublished after noting the error, the ABC said the details were 'in the public interest'. While the Treasurer said he was 'pretty relaxed' about the newly revealed details. He said that they had been 'sent in error,' adding that the advice could not have been 'adequately captured' in the mistakenly published subheadings. Responding to specific taxes, Mr Chalmers ruled out changes to GST reform, and an immediate implementation of a road user charge for electric vehicles. However he said the inevitable take up of EVs would 'have implications for the tax base' in the medium and long term. Mr Chalmers added further tax reform would be debated at the upcoming Productivity Roundtable in August, which will focus on ways to 'simplify the tax system'. 'When we speak with tax experts and people that have a view about tax reform, they're interested in efficiency and equity and simplicity, and other design principles like that,' he said. 'The views we have expressed publicly is (that) if there are ways we can simplify and consolidate regulations in our economy, then that would be a good thing for productivity as well, so long as we don't trade away reasonable standards and protections for people.' While the unredacted files didn't identify specific taxes, Mr Chalmers was told he would need to identify 'additional revenue and spending reductions' in order to put the budget in a 'sustainable' position, the ABC reported. The papers said 'tax should be raised as part of broader tax reform,' and suggested 'indirect taxes' and superannuation taxes as potential avenues. This comes as Labor intends to double the taxes on superannuation accounts above $3m, from 15 to 30 per cent, with Mr Chalmers stating the move would only affect 0.5 per cent of people. However the Opposition has opposed the tax as the $3m threshold will not be indexed, with the tax also affecting unrealised gains, penalising people who hold property and other assets in their super portfolio. Housing Minister Clare O'Neil was also advised to 'adjust' Labor's 1.2 million homes target, which it currently must meet by June 30, 2029. Ms O'Neil was urged to look at how migration and skills training could boost the construction workforce, and reassess how to best use state and territory grants as 'leverage' for improved home building rates. However Mr Chalmers said he believed Australia would still meet the target, and backed the 'ambitious' goal. 'It's not the worst thing from time to time for it to be understood in the broader community, that this will be a difficult target to meet, but if we all do our bit, we all play our part, as the Commonwealth has been willing to play, then we can build the homes that people desperately need.,' he said. 'It's one of the defining challenges in our economy, and we're ambitious when it comes to trying to solve it.' Speaking on ABC RN on Monday, Environment Minister Murray Watt said it was 'not unusual' for a minister to receive advice from government departments. He also said Labor remained committed to the Housing Accord targets. 'I, of course, haven't seen them (the Treasury advice documents) myself, but you will have seen that we've taken a lot of steps already to ensure that we can meet that housing goal,' he said. 'We recognise that it's ambitious, but it's certainly our intention to meet it.'
