The ACT Government is spending more on homelessness than ever before, but less on social housing; homelessness worsens while the number of public housing dwellings falls, according to the Australian Government Productivity Commission’s Report on Government Services data published this week.
The day before the ROGS data was published, the ACT Government announced it would provide $2.6 million to continue crisis accommodation and support services for Canberrans at risk of or experiencing homelessness, including people with high and complex needs and those escaping domestic and family violence, until 30 June.
Rebecca Vassarotti, ACT minister for homelessness and housing services, said this was an interim measure while the government and the ACT homelessness sector planned homelessness service delivery and contract arrangements after 30 June.
- ACT Government’s plan for homelessness is “a milestone” (2 November 2022)
- Housing minister wants to eliminate homelessness in the ACT (8 September 2022)
“In this, we are working to achieve our shared aspiration that everyone has a decent home and to ensure that homelessness is rare, brief, and non-reoccurring,” the minister said.
This week’s funding brings the ACT Government’s total expenditure on homelessness for the 2022/23 financial year to $9 million. Since this parliamentary term began in 2020, the government has spent $15.5 million to establish new emergency accommodation and support services for people in need, Ms Vassarotti said.
But Canberra Liberals MLA Mark Parton, shadow minister for housing and homelessness, described the government’s record on homelessness as “pretty bloody ordinary”.
ROGS data
The ROGS data shows that the ACT Government has increased its expenditure on homelessness services by $10 million over the last four years [Table 19A.1]:
| Year | $ million |
| 2021-22 | 34.3 |
| 2020-21 | 27.3 |
| 2019-20 | 26.5 |
| 2018-19 | 25.6 |
| 2017-18 | 23.4 |
However, there are more than 200 persistently homeless people than there were three years ago. More than four in 10 (42.9 per cent of) people accessing homelessness support in the ACT were homeless for at least seven months out of two years; the national average is 26.6 per cent [Table 19A.39].
| Year | ACT | Australia | |
| All clients | Percentage | Percentage | |
| 2018-19 | 824 | 37.4 | 22.0 |
| 2019–20 | 863 | 34.1 | 22.5 |
| 2020–21 | 989 | 40.7 | 25.1 |
| 2021–22 | 1,041 | 42.9 | 26.6 |
“The ACT already has the highest rate of long-term homelessness in Australia, and has continued to rise,” Mark Parton said.
On the other hand, ACT Government expenditure on social housing for 2021–22 was less than for the three previous years [Table 18A.1]:
| Year | Net recurrent expenditure | Capital expenditure ($ m) | Total ($ m) | Net recurrent expenditure per person in the population ($) | |
| Public housing ($ m) | All social housing ($ m) | ||||
| 2021–22 | 164.6 | 175.1 | -32.0 | 143.1 | 386.36 |
| 2020–21 | 138.7 | 144.7 | 21.6 | 166.3 | 335.41 |
| 2019–20 | 144.3 | 148.9 | 13.9 | 162.8 | 348.32 |
| 2018–19 | 139.8 | 145.2 | 6.2 | 151.4 | 342.7 |
| 2017–18 | 133.1 | 138.4 | -3.1 | 135.2 | 332.67 |
And the number of public housing dwellings has fallen over the last five years and is the lowest in 10 years [Table 18A.3]:
| At 30 June | Amount |
| 2022 | 10 744 |
| 2021 | 10 859 |
| 2020 | 10 985 |
| 2019 | 10 955 |
| 2018 | 11 181 |
| 2017 | 11 077 |
| 2016 | 10 917 |
| 2015 | 10 833 |
| 2014 | 10 848 |
| 2013 | 10 956 |
According to the Australian Institute of Health and Welfare, homelessness services supported 3,811 clients across the ACT in the 2021/22 year. Of these, 45.5 per cent were individuals and 50 per cent were families. (The remaining 4.5 per cent are categorised as ‘groups’ – i.e., people who are not related.) During 2022/23, OneLink, the central intake services for homelessness services and child, youth, and family services in the ACT, reported an increase in families in crisis seeking hotel accommodation.
“The task of providing suitable long-term housing remains difficult, with persistent homelessness presenting as an ongoing issue,” Ms Vassarotti said.
The minister explained that the national increase in cost of living and the impacts of COVID-19 contributed to an increase in homelessness, particularly for families.
“The economic and community impacts flowing from the global pandemic continue to create significant and increased demand for housing and homelessness services in the ACT along with a rise of complex needs among people accessing these services,” Ms Vassarotti said.
But Mr Parton blamed ACT Government policy – what he called four pillars of homelessness – for the increase in homelessness:
- restricted land supply (the government refused to release enough land for stand-alone housing / detached dwellings, because they wanted to push people into apartments – that drove the price of land and all dwellings up)
- spiralling rates and land tax regime
- inability or lack of will to genuinely embrace community housing providers as a solution to the problem
- continual changes to the residential tenancy laws forced investors out of the market, narrowing the private rental market which subsequently failed
“What we see here is a combination of Labor-Greens policies over a number of years which have combined to create a perfect storm in regard to housing unaffordability, rental crisis, and homelessness,” Mr Parton said. “We’re seeing it play out worse here in the ACT than anywhere else in the country because of these policies …
“Everything that the Liberals said would happen in this space is happening right now. It’s a disaster for those who are living on the margins here in the ACT.”
The Canberra Liberals will reveal their housing policy closer to the 2024 election. Mr Parton said he was excited about it, but would not reveal what it was two years out.
“Under a Canberra Liberals government, rents will go down; we will provide hundreds more social and affordable dwellings than the current government. Which side of politics do you think is more likely to have the available cash to deal with this situation? Would you think that it would be the side that’s building a $3 billion inefficient tram, or the side that isn’t?”
$2.6 million for homelessness services
The $2.6 million announced this week will be allocated to OneLink, which will then distribute the funding to providers including CatholicCare; Doris Women Inc; Everyman Australia; Northside Community Service; St Vincent de Paul; Toora Women Inc; YWCA of Canberra; and Yeddung-Mura.
$1.8 million has been allocated to provide emergency accommodation through the Accommodation Support Fund, and $800,000 to continue wrap-around support services (including help to transition into longer-term accommodation) through the Client Support Fund.
“This funding provides significant support for Canberra’s homelessness services as they continue to help those who reach out in times of crisis,” Jenny Kitchen, CEO of Woden Community Services, which manages and operates OneLink, said.
“Many are women and children escaping family and domestic violence, or families facing imminent homelessness.”
The government has committed to develop 30,000 new dwellings over the next five years, growing housing supply from 180,000 to 210,000 by 2027. However, according to the ACT Council of Social Service (ACTCOSS), there is an estimated shortfall of 3,100 housing properties, and 8,500 more social housing dwellings needed by 2036.
“Work is progressing across the Government to deliver the targeted increase in our total housing supply,” Ms Vassarotti said.
“The 30,000 target covers all housing and includes private, public, and community housing. We are working productively with the private sector, the community housing sector, and the Commonwealth on initiatives that will ensure that supply of affordable homes will grow along with the overall supply in housing. More specific initiatives will be announced with the 2023-24 Budget.”
