Housing affordability policy ‘one way ATM’: Scott Morrison

Scott Morrison says Rudd government’s $9bn housing affordability policy has been used by the states as a “one-way ATM”.

Scott Morrison in Question Time. Picture: Kym Smith.

Treasurer Scott Morrison says a $9 billion housing affordability policy created by the Rudd Government has been used by the states as a “one-way ATM” that has done nothing to make property more affordable.

The Australian revealed yesterday the Turnbull government was looking at axing the program, after it emerged states and territories had failed to meet every benchmark set under the agreement, struck in 2009.

It is expected the scheme’s $1.3 billion-a-year in grants will be reduced to a new model that would involve more private sector investment.

Welfare and housing industry groups yesterday raised concerns about taking money from the system, but were in universal agreement that the scheme had been ill-conceived and mismanaged by the states.

“The government has made no announcements or decisions on any of those matters. It is true that under the National Affordable Housing Agreement that was put in place by the Labor Government was basically a one-way ATM to the states,” Mr Morrison said.

“What it did was just spit out money to the states and asked for nothing in return. Now, this is some $1.3 billion every single year in perpetuity that it spat out to the states, rolled over every year without any questions, and you’ve got to ask yourself, ‘What has that delivered?’

“Has it delivered one net extra dwelling for people on the lowest incomes, who are most at stress in the rental market? Well the answer is that it hasn’t.”

Mr Morrison described the lack of results over the last eight years as a “national disgrace”.

“Billions and billions and billions poured out courtesy of the Labor Party when they were in government and it hasn’t delivered a single additional net house anywhere in the country,” he said.

“That is a national disgrace and that funding needs to be put to work to ensure that there are more houses in this country ... that’s what it needs to do.

The Community Housing Industry Association yesterday gave cautious support to plans to reform the system, citing a 2017 report on government services that found public housing stock had fallen by 16,000 homes since 2009 despite the States agreeing to use the Commonwealth grants to increase housing stock.

“We agree that it is time to take a very critical look at the NAHA,” CHIA Chair Michael Lennon said.

“There is no doubt that the public housing system is failing to fulfil its promise to deliver affordable rental housing for low income households, and people looking for rental accommodation in the private market are finding it harder and harder to find somewhere they can afford.

“The sharp increase in low income renters experiencing housing stress during the last decade highlights the need for reform.”