The commission made the recommendations on rental payments as part of a damning review of the $1.6 billion National Housing and Homelessness Agreement, which funnelled Commonwealth cash into state and territory services.
The average low-income renter spends more than one-third of their income on rent. Source: AAP / April Fonti
The deal was deemed ineffective and found to be doing little to prevent homelessness and housing stress.
“It does not foster collaboration between governments or hold governments to account. It is a funding contract, not a blueprint for reform.”
Low-income renters need more support to pay for housing, and barriers to boosting housing supply need to be eradicated.
Productivity Commission report.
“Building more social housing will increase the supply of housing affordable for low-income households, but social housing is relatively costly and can only be a partial solution to affordability,” the report says.
The commission wants to see a new agreement drafted covering the full spectrum of housing assistance provided by governments.