The Productivity Commission notes that each level of government has different roles in housing and housing assistance in Australia:
“The Australian Government provides Commonwealth Rent Assistance (CRA) and shares responsibility with State and Territory governments for housing assistance provided under the Commonwealth State Housing Agreement (CSHA). The Australian Government also influences the housing market through other direct and indirect means, including taxation and home purchase assistance.
State and Territory governments provide housing assistance under the CSHA, such as assistance for the homeless, public housing, community housing, Indigenous rental housing, private rental assistance and home purchase assistance. Some also contribute to the delivery of housing assistance through mechanisms such as home lending programs and joint ventures with the private sector. State and Territory governments are also responsible for land taxes, stamp duties and residential tenancy legislation. Local governments implement planning regulations and are sometimes involved in providing community housing.”
(Report on Government Services 2006: Volume 2, Steering Committee for the Review of Government Service Provision, Productivity Commission, Canberra).
Further information about housing assistance available in NSW and the Council of Australian Governments' directions on affordable housing are set out in more detail in the Affordable Housing section of this Kit
Traditionally then, state and national governments have been responsible for providing housing assistance to people on very low incomes, particularly those with special needs. Increasingly however, resource limitations mean that many of these households must rely on the private housing market.
While local government is not equipped to take over the roles traditionally played by state/territory and national governments, there is considerable scope for councils to direct the activities that are within their domain to promote better housing outcomes for their communities. This is discussed further in The Scope of a Local Housing Strategy section of this Kit.
It is also important to recognise that many of the activities currently undertaken by local government, particularly their urban planning and community services functions, already have a significant impact on housing outcomes. It is important to undertake these roles as strategically as possible to address the housing needs of the whole community.