Tassie gets a clean $late to tackle the state’s housing crisis

The Federal government has agreed to waive Tasmania’s $157 million historic housing debt — on condition the money be put into fixing the state’s housing crisis.

Federal Housing Minister Michael Sukkar, Bridget Archer MP and Tasmanian Minister for Housing Roger Jaensch sign the breakthrough agreement at Newnham. Picture: CHRIS KIDD

TASMANIA will save almost a quarter of a billion dollars over the next 23 years as part of a breakthrough deal that will waive the state’s historic housing debt owed to the Commonwealth.

Federal Housing Minister Michael Sukkar was joined in Launceston yesterday by his state housing counterpart Roger Jaensch for the announcement which will see the State Government save about $15 million each year in housing spending.

The agreement, secured by Senator Jacquie Lambie in return for her support of the Coalition’s tax cuts, will wipe the $157 million remaining debt owed to the Commonwealth.

The State Government will save $230.2 million in total interest and principal repayments until the end of the loan term in 2041-42.

As part of the debt relief, the State Government will be required to redirect all of its scheduled repayments to programs that increase access to social housing, reduce homelessness, and improve housing supply across Tasmania.

Mr Sukkar, who earlier this year labelled addressing Tasmania’s housing debt as a “baptism of fire” since becoming housing minister in May, said the only stipulation of the debt agreement meant “every cent must be spent on housing”.

“I can 100 per cent confirm Tasmania won’t lose any other funding. This is an additional $230 million dollars for Tasmania to be spent on housing and homeless services,” he said.

Mr Jaensch said the agreement could see about 80 houses built each year for people on the social housing waiting list which currently sits at 3400.

“We aim to get that waiting list down, that’s our dashboard. We’ll use every resource we’ve got [from the] State Government and the money that was previously going to the Commonwealth to build more houses for Tasmanians,” Mr Jaensch said.

Senator Lambie heralded yesterday’s agreement signing as “a victory and a relief”.

“It was a historic day. It’s going to make a hell of a difference to hundreds of families who are sleeping in tents and cars, who need a roof over their heads way more than the Commonwealth Government needs our interest payments. This is for them. For them, this is a chance at a new life,” she said.

A Tasmanian Parliament housing affordability inquiry projected 14,200 homes will need to be built over the next 20 years to meet current and future demand.

Greens Leader Cassy O’Connor said lifting the housing debt was “hugely positive” but said Minister Jaensch must acknowledge there’s a lot more funding required and work to do to tackle the housing crisis.

“At the same time, rents are soaring to unaffordable levels, pushing more Tasmanians in to acute housing stress and homelessness,” Ms O’Connor said.

“Meanwhile, the Liberals are pushing an aggressive population growth target with no plan to meet the needs of new arrivals sustainably and strategically.”

Liberal Senator Eric Abetz, who did not join with his fellow party senators Richard Colbeck and Jonathon Duniam yesterday for the debt relief agreement, said he welcomed the announcement.

Earlier this year Mr Abetz said wiping the debt would be rewarding bad behaviour.

“Indeed when South Australia, through a particular deal, was able to side-step its historic housing debt it used the freed up money for other purposes and spent even less on social housing,” he said.

“It was for that reason that I publically called for any debt waiver to be part of a comprehensive reform package including a guarantee for ongoing funding for social housing.”