States used $9bn Rudd policy as a ‘one-way ATM’: Scott Morrison

Scott Morrison says a $9bn housing affordability policy has been used by the states as a ‘one-way ATM’.

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 $1.3bn-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 ... the National Affordable Housing Agreement that was put in place by the Labor government was basically a one-way ATM to the states,” the Treasurer said.

“What it did was just spit out money to the states and asked for nothing in return. ”

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