Cairns councillors debate utility of a N-PPR rate hike in times of severe housing stress

A key council plan to tackle affordable housing and homelessness went before its latest meeting but triggered more discussion about solutions not outlined in the report.

Cairns Regional Council’s proposed “tenant tax” reared its head again in a crucial discussion over housing stress and homelessness in the Cairns region.

The council’s Social and Affordable Housing and Homelessness Action Plan 2023-2026 went before the its ordinary meeting on Wednesday but triggered little discussion about the solutions outlined in the report, and more about what wasn’t.

The document said local government was responsible for considering zoning applications, local infrastructure development, rates and other policy intervention to place downward pressure on housing demand and stress.

Division 3 councillor Cathy Zeiger was quick to remind her fellow councillors they had an important rates decision to make this year.

Division 3 councillor Cathy Zeiger and Division 1 councillor Brett Moller at the Council's ordinary meeting on Wednesday, January 25. Picture: Isaac McCarthy

“Strangely enough, the government, neither state nor federal, has done anything to incentivise investors to invest in the rental market. If anything, new legislation has made it harder for them,” Cr Zeiger said.

“I mention this especially to bring councillors’ attention to the proposed non-principal places of residence rate increase, and encourage us to rethink this through carefully before approving.

“This report states that rates are a way council can assist, so let’s not ignore that.”

The document identified several critical problems. First, social housing in the Cairns LGA accounted for 4.5 per cent of properties, with an average wait time for access of 11 months.

Second, an additional 11,500 social housing dwellings will be required by 2035.

Division 2 councillor Rob Pyne speaks at the Council's ordinary meeting on Wednesday, January 25. Picture: Isaac McCarthy

Third, almost 5000 people in Cairns are classified as not having a safe place to sleep.

Fourth, the Cairns rental vacancy rate is just 0.6 per cent, and the number of renters for life in the LGA is increasing.

Finally, levels of mortgage stress in some areas are as high as 46.5 per cent.

“Data indicates the demand for social housing in Cairns continues to outstrip available stock,” the document reads.

“It is broadly acknowledged that supply alone cannot solve homelessness.

“Local government plays a critical role in … facilitating diverse housing affordability and availability options.”

Division 2 councillor Rob Pyne, the only councillor who’s publicly endorsed the N-PPR proposal, had previously stated the motion could fail before a council vote in 2023.

“I don’t think it will survive … there’s a chance it may not come to a vote,” Cr Pyne said.

But still, he spoke resolutely in favour of the measure at Wednesday’s meeting.

Division 1 councillor Brett Moller and Division 2 councillor Rob Pyne at the Council's ordinary meeting on Wednesday, January 25. Picture: Isaac McCarthy

“To think a cup-of-coffee rates increase will have an impact … I know that’s what some residents have said to us, but I think they’ve lacked a clear understanding of the nature of the rates increase and how little it’s going to impact on them,” Cr Pyne said.

Division 1 councillor Brett Olds said the role of other tiers of government could not be ignored.

“We do what we can as a council … but we should never abrogate the role and responsibility of state and federal government,” Cr Moller said.

“The role they have to play as a higher tier government, that take the higher percentage of taxes, to meet the commitment … in terms of public and social housing that’s needed.”

The council unanimously endorsed the action plan.

Originally published as Cairns councillors debate utility of a N-PPR rate hike in times of severe housing stress