Families, housing, community services and indigenous affairs portfolio
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- Outcome expense statement
- Contributions to Outcome 2: Housing
- Program 2.2: Affordable Housing
Outcome 2: HousingAccess to affordable, safe housing through: payments and support services; and rental subsidies to low and moderate income households. Outcome 2 strategySafe, secure and affordable housing is critical to our prosperity. It underpins sustainable living arrangements and positive life transitions, contributes to opportunities for social and economic participation and provides crucial help for vulnerable people, including those leaving child protection, domestic violence situations and/or health support services. The Australian Government makes a substantial funding commitment each year to the social housing system, which is provided by state and territory housing authorities and the community housing sector. It also contributes to a range of state and territory and community sector services that support people who are homeless or at risk of homelessness. FaHCSIA manages a range of initiatives to address homelessness and leads whole-of-government efforts to achieve the Government's homelessness reduction targets. Much of this work is done in partnership with the states and territories through the National Affordable Housing Agreement and the National Partnership Agreement on Homelessness. Progress and performance indicators for these Commonwealth–state arrangements can be found at www.federalfinancialrelations.gov.au. Through the Commonwealth Rent Assistance program, the Australian Government helps low-income households with the cost of renting in the private rental market. FaHCSIA manages the Rent Assistance policy and legislative frameworks. A suite of housing affordability programs also assist to increase the supply of affordable housing and rental housing available to households on low and moderate incomes. The Building Better Regional Cities initiative supports some high-growth regional cities with investments in local infrastructure projects that will enable more affordable homes to be built. The National Rental Affordability Scheme offers financial incentives to the business sector and community organisations to build new dwellings for rent to low- and moderate-income households at rates that are at least 20 per cent below market rates. FaHCSIA is a key source of policy advice in the areas of housing and homelessness. This advice helps inform government responses, at a system and service level, to current and future challenges including how to best meet the needs of those most at risk within specific housing sectors.
Table 2.2: Budgeted expenses for Outcome 2 
Contributions to Outcome 2: HousingProgram 2.1: Housing Assistance and Homelessness PreventionProgram 2.1 objective To provide rental subsidies for low- and moderate-income households, and to fund homelessness prevention initiatives to reduce the impact of homelessness. Program component objectives Homelessness Prevention To provide funding to support innovative prevention and early intervention initiatives to reduce homelessness and its impact, particularly on families and young people. Rent Assistance To make payments to low- and moderate-income Australians receiving income support or family payments to assist with the costs of renting private and community housing. Linked to: Payments under the National Affordable Housing Agreement, the National Partnership Agreement on Homelessness and the National Partnership Agreement on Remote Indigenous Housing are made by the Department of the Treasury. For information about those payments, refer to the Treasury’s 2013–14 PB Statements and Budget Paper No. 3, Australia’s Federal Relations 2013–14. Also linked to: Rent Assistance paid with income support payments and Family Tax Benefit is delivered by DHS. For more information refer to DHS’s 2013–14 PB Statements. Rent Assistance paid with the Service Pension is delivered by DVA. For more information refer to DVA’s 2013–14 PB Statements.
The change in program expenses across the forward estimates reflects projected changes in indexation parameters and the impact of policy initiatives. The higher estimate in 2012–13 is due to one-off increases in that year to the National Housing Priorities Program and the National Regulatory System. Table 2.2.1: Budgeted expenses for Housing Assistance and Homelessness Prevention
Rent Assistance cash projections Rent Assistance is not a discrete sum of money separately payable under the law, but is a supplementary payment included in the calculation of the primary income support payment, FTB or service pension. The following table provides cash projections for the Rent Assistance component included in the primary income support payment, FTB or service pension. Table 2.2.2.1: Cash projections for Rent Assistance
Program 2.1 deliverables Homelessness Prevention Number of cases where individuals are assisted through homelessness prevention services Number of cases where families are assisted through homelessness prevention services Rent Assistance Rent Assistance payments are made through DHS to eligible claimants under the provisions of the social security law and family assistance law Homelessness Prevention deliverables targets
Program 2.1 key performance indicators Homelessness Prevention Proportion of clients reporting an improved situation after assistance from homelessness prevention programs Rent Assistance Proportion of Rent Assistance recipients in rental stress before and after receiving Rent Assistance Proportion of Rent Assistance recipients paying enough rent to receive the maximum rate of assistance Proportion of clients assisted who identify as Aboriginal or Torres Strait Islander Average rent paid by Rent Assistance recipients by number of recipients, primary payment type and income unit type Average Rent Assistance paid to Rent Assistance recipients by number of recipients, primary payment type and income unit type Administered outlays Number of recipients
Program 2.2 objective To improve the supply of affordable housing available to low- and moderate-income households. To improve the supply of affordable rental housing to low- and moderate-income households. To inform decision-making by governments, the private sector and individuals. Program component objectives National Rental Affordability Scheme The National Rental Affordability Scheme (NRAS) offers financial incentives to the business sector and community organisations to build and rent dwellings to low- and moderate-income households, at a rate that is at least 20 per cent below market rates. The scheme aims to: Increase the supply of new affordable rental housing Reduce rental costs for low- and moderate-income housing Encourage large-scale investment and innovative affordable housing. The Australian Government is committed to stimulating the construction of 50,000 new, affordable rental dwellings. This will see a total of 35,000 dwellings delivered by 30 June 2014, with the remaining 15,000 dwellings delivered in 2015–16, providing more affordable private rental properties for Australians and their families. Building Better Regional Cities The Building Better Regional Cities (BBRC) program is a three-year commitment by the Australian Government to invest in local infrastructure projects that will support an increased number of affordable homes in high-growth regional cities. Grants are provided to local governments for local infrastructure projects that support new housing developments, including connecting roads, extensions to drains and sewers, and community infrastructure such as parks and community centres. Linked to: Annual incentives under the National Rental Affordability Scheme that are provided by tax offsets are delivered by the Australian Taxation Office. For more information refer to the Treasury’s 2013–14 PB Statements. Program 2.2 expenses The Housing Affordability Fund ceases at the end of 2012–13. The NRAS provides annual financial incentives to the business sector and community organisations to build and rent dwellings to low- and moderate-income households at 20 per cent or more below market rates. The incentive is delivered through either cash payments by FaHCSIA or refundable tax offsets. The NRAS refundable tax offsets are delivered through the Australian Taxation Office and are not part of the FaHCSIA Budget. The change in expenses across the financial years reflects the projected delivery of dwellings by approved participants. The Building Better Regional Cities program ceases at the end of 2013–14. Table 2.2.2: Budgeted expenses for Affordable Housing
Program 2.2 deliverables National Rental Affordability Scheme Allocate incentives for the NRAS in accordance with statutory criteria so NRAS dwellings are made available at reduced rents for eligible low- and moderate-income households Building Better Regional Cities Effectively manage the BBRC program to support quality projects that help lower the cost of building new housing, improve supply and make housing more affordable Affordable Housing deliverables targets
Program 2.2 key performance indicators Cumulatively deliver 35,000 affordable rental dwellings (in total) into the NRAS by 30 June 2014 Cumulatively deliver 50,000 affordable rental dwellings (in total) into the NRAS by 30 June 2016 Number of dwellings/lots that have been reduced in price and savings have been passed to home buyers or rentals reduced in price and savings have been passed to renters as a result of BBRC Number of dwellings/lots that have been brought forward as a consequence of the BBRC program
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