Australian Government, 2013-14 Budget
Budget

Affordable housing

In 2013‑14, the Commonwealth will provide funding of $2.1 billion to support state affordable housing services, as detailed in Table 2.8.

Table 2.8: Payments to support state affordable housing services
$million 2012‑13 2013‑14 2014‑15 2015‑16 2016‑17
National Affordable Housing SPP 1,263.7 1,282.7 1,307.1 1,330.6 1,354.5
National Partnership payments          
Building Better Regional Cities 34.6 49.9 - - -
First Home Owners Boost 3.0 - - - -
Homelessness 156.5 155.0 - - -
Remote Indigenous Housing 303.2 541.1 485.6 368.2 411.7
Stronger Futures in the Northern Territory Housing 27.3 51.2 55.8 52.2 46.2
Total 1,788.4 2,079.8 1,848.5 1,751.0 1,812.5
Memorandum item — payments direct to local governments included in payments above          
Building Better Regional Cities 34.6 49.9 - - -
Total 34.6 49.9 - - -

National Affordable Housing Agreement

The National Affordable Housing Agreement commits the Commonwealth and the States to the objective that all Australians have access to affordable, safe and sustainable housing which will assist them to participate in the labour force and, more broadly, in the community.

The Commonwealth and the States have also committed to reforms that will enhance housing programs and services, including by improving:

  • the integration of homelessness services and other mainstream services, such as employment services;
  • operational efficiency of public housing and the employment outcomes of public housing tenants; and
  • efficiency in the supply of housing through planning reforms.
National Affordable Housing SPP
$million NSW VIC QLD WA SA TAS ACT NT Total
2012‑13 402.9 299.8 251.2 134.4 95.0 31.5 23.5 25.4 1,263.7
2013‑14 408.9 311.5 256.9 138.8 94.4 30.0 22.6 19.5 1,282.7
2014‑15 415.9 325.0 264.0 144.7 93.8 28.5 21.8 13.4 1,307.1
2015‑16 421.7 331.2 269.2 149.1 95.0 28.6 22.2 13.5 1,330.6
2016‑17 427.7 337.6 274.4 153.6 96.1 28.8 22.7 13.7 1,354.5

The National Affordable Housing SPP is the funding associated with the National Affordable Housing Agreement. The Commonwealth is providing a financial contribution to support services in the housing sector.

This funding is being used to support a range of measures including social housing, assistance to people in the private rental market, support and accommodation for people who are homeless or at risk of homelessness, and home purchase assistance.

Growth factor

The Intergovernmental Agreement outlines the agreed growth factor for the National Affordable Housing SPP. The growth factor is the wage cost index 1, comprising a safety net wage adjustment weighted by 75 per cent and the all groups Consumer Price Index weighted by 25 per cent.

The growth factor for the National Affordable Housing SPP is currently estimated to be 1.50 per cent in 2013‑14.

National Partnership payments for affordable housing

In addition to the National Affordable Housing SPP funding, the Commonwealth will provide a total of $797.1 million in 2013‑14 through National Partnerships to support state affordable housing services. Further details on these National Partnerships are provided below.

Building Better Regional Cities(a)
$million NSW VIC QLD WA SA TAS ACT NT Total
2012‑13 19.5 5.6 3.5 6.0 - - - - 34.6
2013‑14 41.8 2.2 3.5 2.4 - - - - 49.9
2014‑15 - - - - - - - - -
2015‑16 - - - - - - - - -
2016‑17 - - - - - - - - -

(a) All payments are made direct to local governments.

The Building Better Regional Cities program is a commitment by the Commonwealth to invest in local housing infrastructure projects that is helping build more affordable homes in high growth regional cities.

National Partnership on the First Home Owners Boost
$million NSW VIC QLD WA SA TAS ACT NT Total
2012‑13 0.4 2.8 .. -0.1 -0.1 .. .. .. 3.0
2013‑14 - - - - - - - - -
2014‑15 - - - - - - - - -
2015‑16 - - - - - - - - -
2016‑17 - - - - - - - - -

As part of the Economic Security Strategy, announced on 14 October 2008, the Commonwealth introduced the First Home Owners Boost to stimulate housing activity, support the construction industry and assist first home buyers to enter the housing market. The availability of the First Home Owners Boost has now ceased.

The continuation of the First Home Owners Boost payment in 2012‑13 reflects the final 12 month application period and the timeframes allowed for the construction of new homes. Negative expenditure for some States reflects an estimate of funds recovered from applicants later found to be ineligible; these funds were returned to the Commonwealth.

National Partnership on homelessness(a)
$million NSW VIC QLD WA SA TAS ACT NT Total
2012‑13 41.4 31.2 39.7 19.6 12.0 2.6 2.4 7.6 156.5
2013‑14 ~ ~ ~ ~ ~ ~ ~ ~ 155.0
2014‑15 - - - - - - - - -
2015‑16 - - - - - - - - -
2016‑17 - - - - - - - - -

(a) State allocations for 2013‑14 are yet to be finalised.

The Commonwealth is providing funding for the National Partnership on homelessness. One component of this National Partnership is the A Place to Call Home initiative, a joint initiative by the Commonwealth and the States to build 600 new homes for individuals and families experiencing homelessness. The Commonwealth's contribution to the initiative has been $150 million over the five years to 2012‑13, with the States matching this funding.

A new National Partnership agreement for 2013‑14 is being negotiated with the States. This transitional agreement will be in place while the Commonwealth and States work together towards a longer term solution for homelessness.

The agreements focus on three key strategies to reduce homelessness:

  • prevention and early intervention to stop people becoming homeless;
  • breaking the cycle of homelessness; and
  • improving and expanding the service response to homelessness.

There are over 180 activities being undertaken across the States to reduce homelessness under this National Partnership.

A new spending measure associated with the National Partnership on homelessness is discussed in Budget Paper No. 2: Budget Measures 2013‑14.

National Partnership on Remote Indigenous Housing
$million NSW VIC QLD WA SA TAS ACT NT Total
2012‑13 18.5 2.5 96.9 55.4 5.7 2.8 - 121.5 303.2
2013‑14 44.8 2.5 177.5 191.3 36.4 2.9 - 85.7 541.1
2014‑15 60.7 2.5 155.6 165.6 27.8 2.5 - 71.0 485.6
2015‑16 16.3 2.5 137.3 124.3 18.7 2.5 - 66.6 368.2
2016‑17 15.5 2.5 128.3 97.4 14.4 2.7 - 151.0 411.7

The Commonwealth is providing funding for the National Partnership on Remote Indigenous Housing. This National Partnership was established to facilitate significant reform in the provision of housing for Indigenous people in remote communities and to address overcrowding, homelessness, poor housing conditions and severe housing shortages.

National Partnership on Stronger Futures in the Northern Territory

The Commonwealth is providing funding to the Northern Territory Government through the National Partnership on Stronger Futures in the Northern Territory.

The Stronger Futures in the Northern Territory initiative is described further in the Community Services section of this Part.

Housing component
$million NSW VIC QLD WA SA TAS ACT NT Total
2012‑13 - - - - - - - 27.3 27.3
2013‑14 - - - - - - - 51.2 51.2
2014‑15 - - - - - - - 55.8 55.8
2015‑16 - - - - - - - 52.2 52.2
2016‑17 - - - - - - - 46.2 46.2

The Commonwealth is supporting the provision of safe and healthy houses for Indigenous Australians. This includes funding towards asbestos removal in homes and other buildings.

The Commonwealth is also providing funding to improve remote Indigenous housing in the Northern Territory. This funding complements the funding provided under the National Partnership on Remote Indigenous Housing.

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