Victoria’s Big Housing Build and affordable rentals

Wednesday 14th of August, 2024
Victorian Legislative Council

Rachel Payne MP addressed a question without notice to the Housing Minister, Minister Shing. Rachel noted the dire need for affordable housing amidst a housing crisis, and inquired on the progress and availability of proposed social and low-cost housing for Victorians.

RACHEL PAYNE (South-Eastern Metropolitan): My question is for the Minister for Housing, Minister Shing. Recent reports that the Victorian government has deferred 15 projects from the Big Housing Build that will no longer be built on state-owned land have rightfully distressed community and stakeholders.

In response to these recent reports, the government said that it will seek funding from other streams, with community housing providers committing to build social and affordable homes to make up the shortfall. As it stands, these projects are all at different stages of delivery and some are under consideration for funding, but ultimately these changes bring into question the delivery timeline for this much-needed housing infrastructure. In a housing crisis, it has never been so important that these commitments are delivered in full and on time so more Victorians and their families can have a roof over their heads.

My question is: how can the Victorian people have confidence that this government will deliver on its Big Housing Build as planned?

HARRIET SHING (Eastern Victoria, Minister for Housing): Thank you, Ms Payne, for your question. The reporting that you refer to is actually really problematic because it is wrong. It is actually categorically incorrect. The projects that you referred to on these sites will be delivered, and that has been made really clear. I can confirm here on my feet, as I have confirmed in other forums and as I have discussed with local members and with members of the community, these projects are going ahead. There are a number of projects in what has been reported which were not within the scope of the Big Housing Build. However, the Big Housing Build is one of a number of areas of funding which are about making sure that we can continue to deliver housing across the state. So the idea that if funding is not coming from the Big Housing Build bucket – that $5.3 billion – homes are not being built is fanciful. It is ridiculous and it is wrong.

What I will say is that there will be homes built at the sites that have been referred to. I can guarantee that families and couples and individuals who will eventually be able to call these places home will not care if the funding has come from the Big Housing Build, if it has come from the Regional Housing Fund or if it has come from the Social Housing Growth Fund or the Housing Australia Future Fund. We are determined to continue to deliver on providing housing to people who need it most and easing some of the challenges that we know are being experienced by people right across not just Victoria and Australia but the world as it relates to housing insecurity. People who are over-represented in these cohorts are the vulnerable – victim-survivors of family violence, young people, people who want to age in place and First Nations folk.

We also know that it takes a joined-up approach to make sure that housing can be delivered in the configurations and the locations where we are going to be providing meaningful opportunities for people to have a place to call home that meets their needs. That might be accessibility. It might be energy efficiency. It might be having a home that actually complies with contemporary design standards and an opportunity for people to be proud of where they live. We are going to continue to do that work.

As it stands, the Big Housing Build has spent around $2.5 billion. We have committed around $4.3 billion, and we have commenced around 5177 units. We are determined to make sure that we continue that work, and we are working really hard every single day, including in partnership with the community housing sector, as I said, with the Commonwealth, Housing Australia and the Housing Australia Future Fund. This is really a challenge that requires long-term investment, support, dedication and commitment. We are singularly focused on making sure that our priorities stay exactly in that space.

RACHEL PAYNE (South-Eastern Metropolitan): I thank the minister for her very thorough response and also the acknowledgement of those that are in the community most vulnerable, who this is to support the most.

By way of supplementary, the 25 per cent rent income cap for public housing does not apply to community housing, so I ask: what measures is the government putting in place to ensure that the community housing providers making up that shortfall in supply will provide housing that is affordable and accessible?

HARRIET SHING (Eastern Victoria, Minister for Housing): Thank you very much, Ms Payne, for that supplementary. As I referred to in my answer to the substantive question, community housing providers are a really, really important part of the work that we are doing. When we talk about ACCOs, when we talk about women’s housing, when we talk about housing provided by Haven Home Safe for people with really complex care needs, it is about making sure that we can have that not-for-profit, for-purpose arrangement.

Government provides funding to community housing providers as well, so I just want to be really, really clear that this is not a privatised arrangement, despite what some people might think. It is about making sure that we can provide housing in a range of different ways. Community housing does have a 25 to 30 per cent allocation of income, and there is a cap there. We also take an opportunity to provide community housing providers with income from the Commonwealth rent assistance program. That payment is remitted to the community housing provider as a revenue source to continue to provide that, and that is where again that balance comes in. We will continue to work on providing you with information, though, should you wish to have more information beyond the briefing on social housing that your party has requested.

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