❓ Hon. Samantha Rowe questions the Minister for Housing regarding changes to the calculation of assessable income for public housing rents. The Minister responds that a review is underway and changes will be communicated to Parliament in due course, defending the changes as promoting fairness and equity.
AnsweredQoN 339Legislative Council
QuestionView source ↗
HOUSING AUTHORITY — TENANTS — RENT
ASSESSMENT
339. Hon SAMANTHA ROWE to the Minister for Housing:
I refer to the attached ''Assessable
Income Payments'' list and changes to the calculation of assessable
income in relation to public housing rents from 28 March 2016.
(1) Which income
or benefit categories on the attached list will continue to be assessed as part
of the new calculation of assessable income?
(2) If any income
or benefits have been removed from consideration —
(a) has the
Housing Authority revised its estimate of the number of tenancies the new
calculation method will apply to by the end of 2016; and, if so, what is that
number; and
(b) � has the Authority revised the additional
income it is likely to receive from the new calculation method for 2015–16
and 2016–17; and, if so, what is the revised revenue for each of these
periods?
ASSESSMENT
339. Hon SAMANTHA ROWE to the Minister for Housing:
I refer to the attached ''Assessable
Income Payments'' list and changes to the calculation of assessable
income in relation to public housing rents from 28 March 2016.
(1) Which income
or benefit categories on the attached list will continue to be assessed as part
of the new calculation of assessable income?
(2) If any income
or benefits have been removed from consideration —
(a) has the
Housing Authority revised its estimate of the number of tenancies the new
calculation method will apply to by the end of 2016; and, if so, what is that
number; and
(b) � has the Authority revised the additional
income it is likely to receive from the new calculation method for 2015–16
and 2016–17; and, if so, what is the revised revenue for each of these
periods?
AnswerView source ↗
I thank the member for some notice
of the question.
(1) I have asked
the Housing Authority to re-examine commonwealth payments that have not
previously been included as assessable income and confirm whether they should
continue to be excluded. Pending this review, and as an interim measure, the
Housing Authority has temporarily removed a small number of payments from the
rent increase that occurred on 28 March 2016. I will inform Parliament of these
changes in due course.
(2) If any
changes are made, I expect the impact on the number of tenancies and revenue
will be minimal. Estimated revenue as a result of rent increases may vary due
to a number of reasons, including the number of new public housing tenants,
changes in household income, attrition, and changes in household composition.
Even after rents are paid, public housing is still subsidised by taxpayers by
over $300 million per annum. These changes will ensure that all tenants within
the public housing system make a fair and equitable contribution towards their
housing costs, which in turn assists us to do things like fund the $560 million
social housing investment package that will create another 1 000 social homes,
and halve the priority waitlist for vulnerable seniors and families with
children. Twenty-five per cent of household income is a fair rent for public
housing. People who are not in public housing but on the waiting list with
comparable incomes are doing it much tougher. These people pay the going market
rent regardless of income. These are the people who most need assistance.
Currently, the majority of tenants are paying less than 25 per cent because of
various exemptions and discounts applying to specific commonwealth payments
that have accumulated over many years. This has resulted in some tenants paying
the standard 25 per cent of household income as rent, but others pay as little
as 18 per cent. This is inconsistent and inequitable. The change to what is
considered assessable income reflects the principle that commonwealth payments
that are regular, ongoing and are able to be used for general living expenses
should be included in the calculation of rent.
Hon Sue Ellery : What are the interim changes? Why can't
you tell us that now?
Hon COL HOLT : I said I will inform Parliament
when I am ready.
Several members interjected.
The PRESIDENT : Order! The answer is the answer.
of the question.
(1) I have asked
the Housing Authority to re-examine commonwealth payments that have not
previously been included as assessable income and confirm whether they should
continue to be excluded. Pending this review, and as an interim measure, the
Housing Authority has temporarily removed a small number of payments from the
rent increase that occurred on 28 March 2016. I will inform Parliament of these
changes in due course.
(2) If any
changes are made, I expect the impact on the number of tenancies and revenue
will be minimal. Estimated revenue as a result of rent increases may vary due
to a number of reasons, including the number of new public housing tenants,
changes in household income, attrition, and changes in household composition.
Even after rents are paid, public housing is still subsidised by taxpayers by
over $300 million per annum. These changes will ensure that all tenants within
the public housing system make a fair and equitable contribution towards their
housing costs, which in turn assists us to do things like fund the $560 million
social housing investment package that will create another 1 000 social homes,
and halve the priority waitlist for vulnerable seniors and families with
children. Twenty-five per cent of household income is a fair rent for public
housing. People who are not in public housing but on the waiting list with
comparable incomes are doing it much tougher. These people pay the going market
rent regardless of income. These are the people who most need assistance.
Currently, the majority of tenants are paying less than 25 per cent because of
various exemptions and discounts applying to specific commonwealth payments
that have accumulated over many years. This has resulted in some tenants paying
the standard 25 per cent of household income as rent, but others pay as little
as 18 per cent. This is inconsistent and inequitable. The change to what is
considered assessable income reflects the principle that commonwealth payments
that are regular, ongoing and are able to be used for general living expenses
should be included in the calculation of rent.
Hon Sue Ellery : What are the interim changes? Why can't
you tell us that now?
Hon COL HOLT : I said I will inform Parliament
when I am ready.
Several members interjected.
The PRESIDENT : Order! The answer is the answer.
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