The term ‘affordable housing’ applies to housing that is appropriate to the needs of a household and within their means to pay for it.
The stock of affordable housing has deteriorated across most of metropolitan New South Wales and in many regional areas over the last decade or so. At the same time, parts of the state, particularly non-metropolitan areas, have been experiencing a divergence between the type of housing available and the needs of the population. The result is a shortage of suitable accommodation for local communities in most areas. The availability, form, location and affordability of housing are critical areas in which supply and demand often differ.
The diagram below shows the continuum of affordable housing options and shows how government responds to varying community needs for financial assistance and levels of support linked to housing.
There are many existing programs that help households gain access to affordable housing. The main large-scale programs in NSW are described below.
State and Commonwealth responsibilities in NSW - Program Details
Public and community housing
The Housing NSW makes public housing and, in partnership with non-government organisation, community housing available to eligible low-income households and those with special needs throughout NSW. In 2004/05 there were around 142,000 public and community housing dwellings in NSW. Vacated housing and new dwellings are allocated to those with the greatest need. A range of crisis, short and long term housing with or without support services is provided.
The Community Housing Division has the charter to undertake the strategic development of the community housing sector and promote client-focused and efficient service delivery. The Office is entrusted with ensuring the community housing system is effectively managed, operates in the public interest, and is accountable to Government. The Office is also responsible for regulating community housing providers.
Housing for Indigenous people
In addition to mainstream programs outlined above, there are special housing programs for Aboriginal and Torres Strait Islander households. About 4000 dwellings for Indigenous households are owned by the Aboriginal Housing Office and managed by Housing NSW. About another 5000 dwellings are owned and managed by local Aboriginal organisations.
The Aboriginal Housing Office administers the special purpose Indigenous housing programs.
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Commonwealth Rent Assistanc (CRA)
CRA is an income supplement paid to eligible private renters who are Centrelink clients. Centrelink administers rent assistance.
State assistance for private renters
Housing NSW assists clients to establish and maintain a sustainable tenancy in the private sector using the Rentstart scheme, through which the Department pays 75% or more of the rental bond and the tenant pays the balance. People in severe financial and housing circumstances may be eligible for Rentstart Plus and provided with up to the full bond; up to 2 weeks advance rent (3 weeks for furnished accommodation); or up to 4 weeks rent arrears; and up to 4 weeks rent in temporary accommodation.
Assistance for home buyers
The First Home Owner Grant Scheme:
The First Home Owner Grant Scheme (FHOGS) is fully funded by the NSW Government and administered by the Office of State Revenue (OSR). It was established to assist first home buyers to purchase their first home by providing a $7000 grant. Eligible first home owners can receive the grant regardless of their income, the area in which they are planning to buy or build, or the value of their first home. The grant is not means tested and no tax is payable on it.
First Home Plus Scheme:
The First Home Plus Scheme is administered by NSW Office of State Revenue. The Office of State Revenue also administers the First Home Owners Grant provided by the Australian Government and managed by the States.
For first-time buyers, the NSW Government provides full transfer duty and mortgage duty exemptions for dwellings valued up to $500,000 and partial exemptions for dwellings valued from $500,000 to $600,000.
Purchasers of land receive a full stamp duty exemption for land valued up to $300,000 and a partial exemption for land valued from $300,000 to $450,000.
Advice on Home Purchase:
Housing NSW offers advice on home purchase and administers a program that offers mortgage relief for eligible mortgagors experiencing temporary financial hardship.
An example of an affordable home purchase project is given on the Centre for Affordable Housing’s website.
As set out above, federal, state and territory governments are responsible for providing public housing assistance to people on very low incomes, particularly those with special needs. Increasingly however, budgetary restrictions resulting from a continuing decrease in CSHA assistance and an increase in housing need has meant that many of these households must now rely on the private housing market.
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