Page 4807 - Week 11 - Wednesday, 20 October 2010
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The motion calling for a review to incorporate running costs such as utilities bills when measuring housing affordability is a departure from the standard definition used by the Australian Housing and Urban Research Institute, which refers to absolute residual income once housing costs have been met or a ratio measure specifying the acceptable proportion to be spent on housing. Utilities can vary considerably from household to household, depending on a range of influences. The most obvious of course, is household structure. It is for this practical reason that the modelling of individual living costs across a range of incomes and housing types has not been undertaken by the ACT or any other jurisdiction in Australia. However, we are mindful of the impact of essential non-housing costs, particularly on those on lower incomes, and we have introduced a range of measures to ensure that those on low incomes receive appropriate assistance.
For example, in the 2007-08 budget, the government committed $20 million for energy efficient measures in public housing, and improvements to 2,424 properties have been undertaken. The work done under this plan includes wall and ceiling insulation, draught seals and high-efficiency hot-water systems for new and existing dwellings. Pelmets and curtain rods are being installed in all houses as they become vacant from August 2010 onwards. A photovoltaic electricity generation system has been installed at two apartment complexes. The hot-water systems being installed, where suitable, are five-star gas, electric-boosted solar hot-water systems or electric heat pumps. The hot-water systems are being installed upon failure of the existing systems.
The government also provides a range of concessions to low income earners in the ACT. In the last budget we funded an increase of $20 in energy concessions, with a maximum annual rebate of $214.87.
In terms of the $328,000 affordable home purchase initiative, this is just one part of the affordable housing action plan, which contains 84 objectives across a range of policy areas which include planning reform, land release, public and community house, aged persons housing and homelessness. The affordable home purchase initiative is just one of those 84 objectives within the plan and is aimed at singles and couples on median incomes aspiring to home purchase. To isolate this objective as the government’s only measure of housing affordability for all ACT households is both incorrect and misleading. There are other important thresholds which exist within the action plan for those on lower incomes. These include the entry point to public housing and the entry point into community housing. In both instances, pathways to home purchase from these entry points are either in place or being developed.
We are also working closely with the federal government to increase the ACT social housing stock to 12,000 by mid-2011, and scoping has commenced for the redevelopment of Allawah flats, Bega flats and the Currong apartments.
And let me give an update on the land rent scheme as well. As part of the housing affordability action plan, the ACT government’s land rent scheme is designed for a person or family on a low income in the ACT so that they can purchase a home. The land rent scheme does enable families and singles on lower than average incomes to
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