Relying on the market never fails, does it A presentation to NSW Shelter seminar, Sydney, 15 June 06

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Relying on the market never fails, does it?A
presentation to NSW Shelter seminar, Sydney, 15
June 06Adrian Pisarski
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Government Funding
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• Judy Yates Sydney Uni has estimated approx 28b
  in Commonwealth assistance to housing overall
• CSHA now less than 1b
• CRA approx 2b
• Remainder goes to home owners and investors
  through FHOG, Cap Gains Tax exemptions, Neg
  gearing, other tax exemptions
• 2003-2008 CSHA guided by principles including
• Providing assistance for the duration of need
• Minimising workforce disincentives
• Promotes alternative methods of housing provision
• Assisting those whose needs for appropriate
  housing cannot be met by the private market

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Confused emphasis

• Howard Government primary housing policy is to
  encourage home ownership
• Increased targeting for public housing
• Increasing CRA to assist low income earners into
  private rental
• But Australia now has lower rates of ownership
  than U.K. with our rates declining over the
  course of the last decade
• Increased CRA and neg gearing encourages more
  rental as prop of total
• Insistence on market primacy also creates higher
  reliance on rental

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Response to Productivity Commission Inquiry

• Recommendation 10.1 A national public inquiry
  should be established to examine the housing
  needs of low income households across Australia,
  including in Indigenous communities, and the
  nature and extent of assistance to help meet
  those needs.
• Response The Government does not support this
  recommendation. Work is already being undertaken
  under the auspices of the Housing Ministers
  Conference, looking at ways to enhance the
  affordability of housing for low income
  households. The Australian Government already
  provides significant resources to address the
  housing needs of low income households.

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Home ownership affordability is still close to
historic lows
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First Home Buyers recovery still a long way to
go
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Not only the Feds

• All States looking for partners, partly as a
  condition of the CSHA, but also because they are
  all going backwards re Public Housing stocks,
  wont borrow and dont trust community housing
  orgs with assets.
• Need Subsidy
• Homelink e.g. bundles 10 years CRA plus 6,000
• Bonnyrigg, Minto PPPs
• Victorian Housing Associations
• But we are still waiting for Policy