The state government’s new social and affordable housing scheme announced on February 18, which was slammed by Hume mayor Carly Moore as “simplistic” and “cost-shifting”, has stalled.
Discussions ground to a halt after figures released on Wednesday, February 23, showed the direct cost to ratepayers – $2.7 million in Hume, meaning an annual $32 increase for individual ratepayers according to Home Victoria data.
Outside Victorian parliament, Premier Daniel Andrews said the Bill would not be introduced to parliament and that its future was “very, very uncertain”, as industry was no longer on board.
Property and construction bodies have said they were not informed about the tax – called the Social and Affordable Housing Contribution – until it was announced.
Property Council of Australia’s executive director Danni Hunter said it was “yet another tax at the wrong time”.
“We know there is a problem with access to affordable and social housing in Victoria, but it is not a problem that can be solved and paid for by new home buyers,” Ms Hunter said
The Bill aims to exempt social housing from paying rates to bring them into line with hospitals and schools, with all newly-built developments from July 2024 with three or more dwellings and three or more subdivisions to contribute 1.75 per cent of the completed project value to the Social Housing Growth Fund.
The contribution was predicted to raise $800 million a year, to fund the construction of more than 1700 new homes a year and create 7200 jobs.
In a joint statement from Darebin City council, Hume City council and Moonee Valley City council, the mayors said the Victorian government’s decision to stop paying its rates on social housing would “slog taxpayers”.
They urged the government to defer changes to social housing rates until consultation with councils takes place.
“It makes no sense that ratepayers in municipalities where there is social housing will pay more to subsidise social housing across Victoria,” Cr Moore said.
“Hume City has one of the highest numbers of social housing in Victoria, as well as overall disadvantage – this community will unfairly bear the brunt of this decision at a cost of $2.7 million per year.
“This decision is simplistic cost-shifting,” she said.
In a Tweet, the Council to Homeless Persons said passing the Bill would have a “meaningful” impact on the lives of people who don’t have a home.
“Victoria needs more social housing and this policy will provide 1700 new homes a year,” the Tweet said.
Cr Moore said while Hume welcomes the government’s Big Housing Build program, there is a more urgent need to focus on upgrading existing social housing, especially in areas like Broadmeadows.
“After Council’s extensive advocacy, the Minister for Planning, Richard Wynne MP acknowledged last year that there were opportunities to invest in social and affordable housing at Broadmeadows’ largest social housing estate, Banksia Gardens,” Cr Moore said.
“We are still waiting for action on this and continue to call for an urgent commitment to be made to this site.”
