Download Policy and Economic Context in IHP Countries (Australia)

POLICY AND ECONOMIC CONTEXT
IN IHP COUNTRIES (AUSTRALIA)
Matthew Woodward
CEO, Unity Housing Company, Adelaide, Australia
Director PowerHousing Australia
ANNUAL LEADERSHIP EXCHANGE
WESTIN BAYSHORE HOTEL, VANCOUVER, BC – OCTOBER 2012
AUSTRALIAN CONTEXT
POPULATION
•
Now 22,596,500 million
•
28 million by 2030
•
42.5 million people by 2056
•
62.2 million people by 2101
•
90% of population live within 100 kilometres of the coast
•
65% living in a capital city
POPULATION SPREAD
•
High standard of living
•
High cost of living
•
Inequality
 Wealthiest 20% of households own 62% of total household wealth
 Least wealthy 20% of households own less than 1% of total household
wealth
•
2.2m people in Australia are estimated to be living in poverty
•
Indigenous Australians experience disproportionate levels of educational,
employment and social disadvantage.
ECONOMY
•
13th largest in the World
•
Service sector, 68% of GDP.
•
The total mining sector 19% of GDP.
•
Economic growth largely dependent on the mining sector and
agricultural sector
•
Major restructure and reforms of 80s
GFC
•
Impact minimised as a result of:
 Economic restructuring
 Federal Government fiscal stimulus package
 High demand/prices for commodities
•
But
 Economy out of balance
 Confidence is dismal
 Recent fall in commodity prices
HOUSING
Tenure
 Home Ownership 70%
 Private Rental
25%
 Social Housing
5% (400,000 dwellings)
NFP 12% *(45,6000 dwellings)
Housing Type
 Separate House
 Semi detached
 Apartments
76%
10%
14%
• Current undersupply of dwellings of 200,000 is
anticipated to grow to a shortfall of 640,000 by 2030
HOUSING COSTS
•
1.1m Australian families are living in housing stress
•
60% of low income households in private rental are in housing stress
•
48% low income households with a mortgage are in housing stress
•
Over 240,000 people are on the waiting lists for social housing across
Australia
SOCIAL HOUSING POLICY CONTEXT
•
Historically social housing provided by the State and territory housing
agencies with limited provision by not for profit providers.
•
Make-up of Australian social housing is changing. The number of community
housing dwellings has increased by 27% over past 5 years whilst public
housing numbers have decreased by an equivalent number.
•
In the face of increasing demand (there is a growing gap in the supply of
affordable housing with a current gap estimated at 100,000 dwellings and
growing.
GROWTH BUSINESS MODEL
•
State and Federal Governments are increasingly turning to community
housing/NFPs as a vehicle to help address the shortage of social and
affordable housing
•
Key Policy Settings

Commonwealth Rent Assistance

The National Rental Affordability Scheme (NRAS)

NB&JP – Nation Building and Jobs Package – the economic stimulus
package

Infrastructure Funding

First Home Owners Grant

Planning and development approval regimes
MAJOR AREAS OF CHALLENGE FOR NFP
SECTOR IN BUILDING BUSINESS
SYSTEMS
•
The lack of a National Regulatory Framework
•
The lack of any consistent funding program that has a longer than electoral
cycle commitment
•
The lack of scale of existing associations and providers
•
The need for reform of the Public / State Housing Authorities
A NEED TO RAISE PROFILE OF THE NEED
IN THE WIDER COMMUNITY
Australians for Affordable Housing
•
A four point plan –

Increase the supply of affordable rental housing

Improve housing affordability through tax reform

Improve rent assistance

Set benchmarks for all levels of government to deliver affordable
housing