Hon Ken Baston questions the Minister for Housing regarding the breakdown of costs associated with public rental properties, the inclusion of rental income in those costs, and the reason for exceeding the target cost for 2019-20. The Minister provides a detailed breakdown and attributes the cost overrun to increased maintenance and COVID-19 related rent defaults.

AnsweredQoN 1345Legislative Council
Asked
25 November 2020
Portfolio
Housing

QuestionView source ↗

HOUSING — RENTAL ACCOMMODATION —
PUBLIC RENTAL PROPERTIES
1345. Hon KEN BASTON to the minister representing the
Minister for Housing:
(1) What is the breakdown of costs of the $17 175 average
operating cost per public rental property?
(2) Does the $17 175 include or exclude rental income from
the property?
(3) Why is the actual cost so much higher than the target
cost for 2019–20?

AnswerView source ↗

I thank the honourable member for some notice of this
question.
(1) The answer
is in tabular form. It lists the 2019–20 actual component costs of
efficiency key performance indicator 1.1—average
operating cost per public rental property. I seek leave to incorporate that
into Hansard .
Leave granted.
The following
material was incorporated —
Component costs of service
2019–20 Actual
Cost of goods sold
�$ 568,278
Rental
�$274,968,535
Community Support
�$128,120,199
Employee benefits expense
�$155,894,040
Supplies and services
�$46,590,479
Depreciation amortisation
�$100,645,708
Finance costs
�$16,499,090
Accommodation
�$14,730,676
Other expenses
�$88,515,981
Loss on the disposal of non-current assets �
�$6,535,400
It should be noted that some
component costs listed, such as construction and associated administration
costs that are capitalised, are excluded from the calculation of the KPI.
(2) Rental income is excluded.
(3) The actual
spend of $17 175 exceeded the target of $14 550 for efficiency key performance
indicator 1.1 due to increased maintenance expenditure and an increase in the
expected rate of default for payment of rent from customers as a result of the
effects of COVID-19.

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