In 2004-05, the Department of Housing provided much needed housing assistance of various forms to over 420,000 people in NSW.
This year, the Government also announced the most significant changes in the history of the NSW Department of Housing with the release of a reform plan, Reshaping Public Housing. These changes constitute a fundamental shift in the philosophy of public housing, and ensure the ongoing sustainability of the public housing sector. They include: an end to tenure for life, changes to eligibility for public housing, and increases in rent for tenants most able to pay, amongst other reforms. The result will be a public housing system that is better targeted towards providing housing assistance for those most in need.
The reforms are extremely important in guaranteeing the viability of the services provided by the Department of Housing. Over the past 30 years, NSW has undergone significant demographic changes. In the early 1970s, over 70% of applicants for public housing were couples with children. Today, over a third of applicants are single, another third are single parents and only 10% are couples with children.
Over a quarter of subsidised tenants are on the disability support pension, and nearly a third of household heads are over 65 years of age.
Societal changes will continue to drive demand for public housing from the frail aged, people with disabilities and individuals and families in desperate circumstances. As the housing stock ages, costs for repairs and maintenance also escalate. This places huge pressure on the housing budget.
At the same time, Federal Government cuts to the financial grants provided under the Commonwealth State Housing Agreement mean that there are real limits to the number of additional homes that can be made available in the public housing system in the coming years.
In addition to the Government’s plan for Reshaping Public Housing, a further $190m in funding has been committed, over the next four years beyond the Commonwealth State Housing Agreement, to assist the Department in its property and tenancy management of public housing homes.
While the reforms to the public housing system will be significant, the Department has made progress in a number of other areas in 2004-05. The redevelopment of housing estates across NSW is a key priority for the Department, as is our Maintenance Reform Program.
I look forward to the challenge of supporting the implementation of these and other initiatives that, I believe, signal the fairest way forward for social housing in NSW.
The Hon Cherie Burton MP
Minister for Housing
Minister Assisting the Minister for Health (Mental Health).
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