Page 1174 - Week 04 - Thursday, 21 May 2020
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housing continuum including homelessness response, public housing, affordable rental and home purchase opportunities. This funding underpins a range of initiatives being delivered under the Strategy.
Under the Strategy, goal 4 details the government’s commitment to increasing access to affordable rental housing for Canberrans on low-moderate incomes. Further information about the range of activities underway to support this key priority is provided in response to question 3.
(2) The Strategy provides a multi-faceted approach to guide the delivery of housing and with a particular focus on affordable housing, and the focus to date has been on delivering against the targeted actions and commitments outlined in the strategy and its accompanying Implementation Plan (the Plan). Steady progress has been made in this regard, and this was detailed in the ACT Housing Strategy Year 1 Report Card (November 2019).
The ACT Government is monitoring the National Rental Affordability Scheme’s staged conclusion and if necessary, may develop a policy response to address the impacts. Due to the Strategy’s agile and responsive nature, this could occur within existing policy parameters, if considered a suitable approach. At the same time, the other initiatives in the Strategy relating to affordable rentals, as mentioned in response to question 3, will continue.
(3) A range of initiatives are in place that both support the strategy’s goal of increasing the quantity of affordable rental accommodation and diversifying the supply base. Supply side levers utilised to support these outcomes include financial and tax incentives, mandatory housing and supply targets, and collaboration and partnerships with the community housing sector. Examples of these supply side interventions include:
• The affordable community housing land tax exemption pilot. The pilot provides a full land tax exemption for up to 100 properties when owners register with a community housing provider (CHP), to rent their property to an eligible tenant/s for 75% (or less) of market rent. As at 1 April 2020, 28 properties have been registered under the pilot, two of the three eligible CHPs are participating and the third has expressed their intention to do so in the near future. The pilot is currently scheduled for review in June 2023.
• Residential tenancy relief. A rates and land tax rebate is available to landlords who temporarily reduce rent by at least 25 per cent for up to six months for residential tenants who are having difficulty paying their rent as a result of the COVID-19 crisis. This is a ‘cost sharing’ arrangement between the ACT Government, landlords and tenants, with the government contributing up to $2,600 over six months to match 50 per cent of the rent reductions offered by landlords.
• Remission of Lease Variation Charge - Affordable Rental Development Concession (LVC remission). This measure provides a 25% LVC remission to CHPs who develop land for affordable rental housing. Developments under this scheme must be rented to tenants who meet income-based eligibility criteria and be retained for affordable rental purposes for a minimum of seven years. The remission was introduced in October 2019 and will run for a three-year period followed by a review to determine its efficacy.
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