What are the peak bodies saying. We hear from CHP, CHFV and VCOSS
Council to Homeless Persons (CHP) The Council to Homeless persons has congratulated the Victorian Government on the significant investments in housing, homelessness and family violence announced in this year's State Budget. While many of the commitments outlined in the Budget had been announced previously, they are worth recognising a second time; in particular, the Government’s major housing centrepiece Homes for Victorians, which includes $1 billion commitment to a Social Housing Growth fund. The other big news in this year's budget was the $1.9 billion investment in family violence services. Given the insidious relationship between homelessness and family violence, this commitment is highly commended.
While recognising the positive measures taken in this State Budget, CHP's CEO Jenny Smith has warned that Federal commitments will also be needed to stem the rising tide of homelessness. Ms. Smith has urged the Federal government to follow Victoria's lead and increase spending on social housing and homelessness in the 2017 Federal Budget, to be handed down on Tuesday 9 May. You can read our media release here and you can also view our easy-to-read matrix: What is in the Budget for housing and homelessness?
Victorian Council of Social Service (VCOSS)
This budget largely funds the Victorian Government’s Homes for Victorians policy, announced in February 2017, including expanded social housing and stamp duty concessions for first home buyers. The unprecedented investment in family violence also includes additional funding for social housing and crisis accommodation.
Key Initiatives
Social housing growth fund The Victorian government will invest $1 billion into a perpetual housing fund, spending the interest received on social housing projects.
Improved crisis accommodation options $83.1 million over four years to transition 13 family violence refuges to individual crisis accommodation by 2020, plus build two new Aboriginal family violence refuges and commence operation of two youth refuges.
Long-term housing for family violence survivors $48 million will fund an additional 110 public housing properties for family violence survivors and their children to leave crisis accommodation.
Community housing property transfer The Victorian Government will undertake management transfers of 4,000 public housing properties to the community housing sector.
Stamp duty concessions for first home-buyers The Victorian Government will cut stamp duty for first home buyers for low and moderately-priced homes, costing $851 million over four years. Read more
Community Housing Federation of Victoria (CHFV)
The delivery of the State Budget was upbeat with the Treasurer of Victoria, the Hon Tim Pallas announcing a surplus of $1.2b for 2017/18. This has been achieved with the state experiencing strong economic growth and net debt below 6%. The centrepiece of the State Budget was unprecedented funding of $1.9b to continue implementing the 227 recommendations of the Family Violence Royal Commission. In addition to establishing the 17 Support and Safety Hubs across the state more funding has been dedicated to support, counselling and therapy. In the housing area $133.2m has been allocated with:
It has been reported that the Government will impose an additional efficiency dividend of $1.3b over 4 years across all departments to help fund the program. Homes for Victorians, which was brought down in March, detailed the bulk of the Government’s spending initiatives in housing and support with a summary of recent announcements plus some important future initiatives to grow and improve social housing. Many of these are in the design phase and the community housing sector is working with Government to bring these initiatives to life – but it will take time to put houses on the ground. The budget papers show that social housing (public and community housing) dwelling numbers are growing after a few years of decline.
2015/16 actuals
2016/17 target
2016/17 expected
2017/2018 target
86,266
85,524
86,555
86,809
This financial year the growth is 289 dwellings and 254 next financial year. Subsequent years should deliver higher number once the public housing redevelopments, low cost loans and growth funds start to deliver. The budget papers show that the Housing Assistance operating funds have grown to $583m in 2017/18, up 13.6% (9.4% when adjusted for inflation and population growth) on the previous year. It is a staggering 28% increase on actual expenditure of $422.7m in 2014/15. The budget assumes the receipt of the NAHA funding from the Commonwealth with 1.8% indexation but the Commonwealth budget next week will have more information on this. Victoria is experiencing a perfect storm of strong population growth, decreasing housing affordability and a low proportion of social housing (3.5%) compared to other states and territories - much of which is public housing that requires replacement. CHFV's own research has shown that we need an additional 1,800 new social homes a year just to keep up with population growth. The considerable new investment in housing assistance in the budget and the previously announced initiatives in Homes for Victorians are welcome. Nonetheless, it is clear that our social housing system will continue to struggle with overwhelming demand unless there is significant further investment from all levels of government.
