22 March 2024

Doorstop interview, Melbourne

Note

Subjects: opening of social and affordable housing in Melbourne, Housing Australia Future Fund applications closing, National Housing Accord

MICHELLE ANANDA‑RAJAH:

It’s great to see the completion of 434 homes. Now, this is a mix of social homes, private rental as well as disability specialist homes, and the key to all of this is that these are all affordable homes. Affordable homes and of high quality, high sustainability – 7‑star rating. This would not have been possible without the partnership between the Albanese Government, the Allan government, industry partners and community housing providers. We know that in order to solve the problems around housing shortage, we need to form partnerships and collaborate. It’s not division that is going to do this, but collaboration, and right here in Prahran we have the blueprint of what that future could look like. These are high quality, sustainable homes and they are in the heart of Prahran, which means that people, when they move in – residents when they move in, and some of them have already moved in – will have access to the essential services and public transport. That’s exactly what we want to see happen, not just in Prahran and in Higgins, but right around Australia. I’d like to pay tribute to – there’s two women powerhouses standing behind me. The Minister for Housing at the Federal level, Julie Collins, and Minister Harriet Shing, for all their work in bringing this vision to fruition. On that note, I’d like to invite Mr John Berger to say a few words. Thank you.

JOHN BERGER:

Thank you, Michelle. My name’s John Berger, I’m the member for Southern Metro. Well, it’s a magnificent day to see this building finally completed. It’s been some time that the construction has gone on. My office is just down the road, some 200 metres – we’ve watched it grow since the first concrete truck rolled in to do its first pour, so it’s a fantastic facility. I just want to point out one thing – you look at this magnificent facility here and look at the older one over there. This is what the Allan Labor government is doing – it’s transforming that into something like this, so that people can live in comfort and quality as they get on in life. I think it’s a great opportunity to have you all here today and to hear from the residents and the Ministers as to what we’re doing in terms of social housing. Thank you.

JULIE COLLINS:

It’s terrific to be here. I’m Julie Collins, I’m the Federal Housing Minister, the Minister for Homelessness and the Minister for Small Business. It’s terrific to be here with local members – the member for Higgins and the member for Southern Metropolitan, John Berger and Michelle Ananda‑Rajah – but, importantly, it’s great to be here with my good friend Harriet Shing. What we want to see is more partnerships like what we’re opening here today, where we are delivering 434 social and affordable homes for people. These are the types of partnerships that we want to see right around the country.

This is what you get when you get tiers of government working together, working with industry and working with the community housing sector. That’s what the Housing Australia Future Fund is all about. The Housing Australia Future Fund is now up and running. Importantly, today is a historic day. Today is the closing of the first tender round of the Housing Australia Future Fund and the National Housing Accord. Together, these two things will deliver 40,000 social and affordable homes from the federal government over five years from 1 July. We’re talking about investing with other tiers of government, with the community sector, to deliver more homes for Australians who need them most. They are just a part of the federal government’s housing agenda.

We have now invested more than $25 billion in new investments into housing in Australia over the next decade since we came to office. We want to work with states and territories – after a decade of very little action from the former federal government – the states, the territories, the sector, community housing providers are all too aware that it’s terrific to have a federal government who are back at the table. Not just at the table but investing and working with other tiers of government so that we can deliver more homes for Australians that need them and more homes, in terms of supply, right across the country. As I said, more than $25 billion in additional investments over the next decade. I’ll hand over to the local Minister.

HARRIET SHING:

Thanks so much Julie. Good morning, everyone, we’re on Wurundjeri country today so I’ll begin by acknowledging traditional owners of the lands upon which we meet today. I also want to acknowledge the really important work that Aboriginal housing service providers, staff and, indeed, community members are playing in the way in which we’re designing and delivering a record investment in social and affordable housing across the state.

We know that affordability and availability are the two key challenges for housing here in Victoria. When we invested $5.3 billion into our Big Housing Build in 2020, it was with the specific objective of partnering with all levels of government to deliver developments just like this. When we see that through partnerships, including with the community housing sector, we can deliver more than 430 homes, of which 228 are for social housing. We know that communities can be delivered – the amenities, the facilities, the dignity and the connection that everybody deserves. The homes that you see here are in the process of being occupied by renters. Since February, we’ve seen people beginning to move in. The vast majority of these homes are single bedroom and that fits the need that we are seeing across the demographic. With the population across Melbourne projected to be greater than the size of London by 2050, we know that’s increased density and these partnerships – including with the private sector – that are going to enable us to deliver this housing in volume and to the standard and quality that meets design expectations and requirements. Whether it’s flood management, fire risk or seismic risk addressed, we do want to make sure that those standards are adhered to, but that we’re also delivering bright, modern, energy‑efficient and connected homes. Where we can drive down the cost of living through better design of our buildings, we are helping the people who are most vulnerable to meet the cost of living and to make sure that they are in a place which enables them to connect with and be part of community.

We’re determined to continue with the work, the hard work over coming decades to deliver on record investments across social housing around Victoria. We’ve got an investment around large scale building and infrastructure that’s also complementing the development of precincts, the development of connections to public transport. Growth across the state with an additional $1 billion in the Regional Housing Fund, and we’re determined to partner with the Commonwealth, who has also made a complementary investment in record terms to ensure that when we develop new projects like this – whether they are low, medium or high‑rise, whether they are about dismantling and rebuilding the public housing towers that have formed an important part of our horizon over many decades and generations – that these partnerships will be the way in which we deliver the sorts of improvements that aren’t about politics at the end of the day. They are about people. They are about families. They’re about dignity, safety, security and an opportunity to connect with the world around them in the way that we expect and are entitled to.

So, I want to thank everybody that has been part of this work. I am the Housing Minister now, able to be in a position to congratulate everybody for their work. It’s been a number of people over a number of years who’ve worked so hard to do these projects, to bring them to life. It’s been about making sure that we’re working with and partnering with communities. Consultation, discussion and ongoing autonomy. Decisions that people can make in their own interests as families and as renters, have led to everything from the ‘right of return’, also through to people’s discussions about where and how they want to live according to their needs as they may change over time. So, today is one important day. It’s an important opportunity to stop and to look at what we are building, to look at how far we’ve come and also to recommit to the work that is on foot at the moment as we move here in Victoria to deliver at least 12,000 social and affordable homes through the Big Housing Build, a further around 1600 additional homes in regional and rural Victoria, and to partner of course with the Commonwealth, who are making record investments into this space.

Very happy to take any questions, but we also have – really importantly – M‑R. M‑R is a resident here at Bangs Street. M‑R moved in here in February this year, the first resident to move in. She’s just been generous enough to show us around her home, a home that she’s made her own. A home that is about making sure that she has security, safety and a wonderful place to put her mark on, now and into the future. I’m really delighted to invite you to perhaps say a few of things if you’d like and take the microphone.

M‑R:

Alright. Well, what I’d like to say is that you’ve just heard two Ministers speak, but what they’ve said is absolutely true and there was one comment that particularly impressed me which was to compare that building to these. Absolutely brilliant, just brilliant. I’ve never lived in a place like this – I’ve lived in a lot of different flats, different kinds of places. I have lived in one government‑sponsored building which was an aged care home when I was down in Geelong. But I was born in Perth, I’ve lived in Sydney for 40 years. Melbourne is my spiritual home and I’m so happy to be back in Melbourne but most of all, I’m so happy to be here. So, all I can do is say to everybody, anyone who sees any of this, thank you.

JOURNALIST:

For Minister Shing, if that’s okay? So, Minister, will you and/or the government cooperate with this Upper House enquiry into the decision by the government to knock down 44 housing towers around Melbourne and rebuild them which, many residents who were at Parliament on Wednesday say, would be highly disruptive?

SHING:

Change is difficult, and we know that in developing the 44 towers and increasing density to accommodate a huge growth in our population, we need to be able to deliver a range of housing options for people across these sites. Taking these houses in volume from 10,000 up to 30,000 people across these 44 sites means that we can have a mix of housing opportunities. I don’t underestimate for a second the level of connection and pride, the memories and nostalgia that inform the generations of people who’ve called these towers home, but they’re no longer fit for purpose. They were constructed between the 1950s and the 1970s using concrete slab construction, which means that they have low ceilings, narrow doorways. They’re not compliant with disability accessibility. They don’t comply with modern standards around flood, fire and seismic risk. They don’t provide the amenity around being cool in summer and warm in winter. They’re stuffy and they create all sorts of challenges around managing electrical loads right through to fixing faults and maintenance improvements. As we continue to work with residents, we know that engagement and discussion is at the heart of making sure that people can ask questions and can make their own decisions about where and how the relocation process will apply to them. Across the next tranche of towers, we’ve seen 98 per cent of residents engaged in relocation process, with 94 per cent of those people having received an outlined relocation process. Change is difficult. I’m looking forward to continuing the work that means that people are at the heart of this development, to make sure that the buildings that we provide to people, including for those who wish to exercise a ‘right of return’ to the same area once those new buildings are complete, are able to be part of the distribution and the discussion of information, having questions asked and answered. We’ve had pop up shops; we’ve got around 150 interpreters working on this. We’ve doorknocked every single resident and we continue to have the availability of information as people proceed with the discussions around what relocation means to them.

This is long‑term work, but the status quo is not an option. We’ll proceed carefully, we’ll proceed in a way that provides people with the detail and the information that they need to make the decisions that are right for them, and we will do this in a way that means over decades we’re creating the best possible set of outcomes for families who call the towers home now and for future generations. I’m very happy to participate in any parliamentary enquiry that occurs in the upper house. This will not be the first time that I’ve answered before an upper house committee. I’m always really determined to make sure that I can provide information that answers questions. It is unfortunate that at no point did Housing Spokesperson Dr Ratnam, who initiated this inquiry, ever ask me for a briefing on these towers’ developments. I have offered, consistently, the opportunity for the crossbench and many of them have taken me up on this offer to explain the work that we’re doing and to invite them to be part of the community discussions that are occurring. It’s really disappointing that we have seen the Greens use, yet again, the development of social housing as an opportunity for cheap political attack. We know that when Greens members are in councils, they block social housing. We know that when the Greens team up with the Liberals, they block social housing. This is not the first time this has occurred; it will not be the last. We are pressing ahead with these nation‑leading reforms to make sure that people like M‑R have homes they can be proud of. We’ll do that, even where the Greens are continuing to act in a way that perhaps fills a social media reel but doesn’t actually deliver any improvements in the long‑term, in ways that meet the needs of real people in real situations with real need who are looking at real opportunities.

JOURNALIST:

Does the state government have plans to change stamp duty?

SHING:

We’ve already made a number of changes around the way in which we’re easing the cost of living and of buying a home. We know from a recent enquiry and report that stamp duty distorts behaviour and the way in which it is reflected in buyer choice and we also know there’s been an important part of first homebuyer grants as well as the new homebuyers shared equity scheme to ensure that homebuyers don’t have to come up with the cost of a large deposit when everyday cost‑of‑living pressures continue to rise. We’ve invested a $500 million initial fund as part of the first homebuyers shared equity scheme – this then means that we’ve been able to assist around 7000 homebuyers. There’s been another $500 million announced as part of the housing statement last year, and it’s the aggregate of this work that will continue to provide relief to people who do want to get into the housing market. Who do want to make sure that they can make decisions about downsizing or about relocating in a way that doesn’t have that behavioural distortion that the reports outlined. The Treasurer will be issuing the Budget on the 7th of May, I’m looking forward to seeing the outcomes of a range of discussions and advocacy that’s been happening across the board, whether it’s been John Beger here in the Southern Metropolitan Region or indeed people right out at the borders of our state. We know that affordability and availability are the key challenges for renters, for homeowners, and for people saving a deposit and we also want to ease that challenge including through housing statements and the work that Plan for Victoria is doing.

JOURNALIST:

Why has the government ruled out any changes to stamp duty up until this response to the stamp duty enquiry that was tabled yesterday?

SHING:

Well, when we know that stamp duty distorts behaviour, when we know that it creates a barrier and, indeed, informs disincentives around downsizing or changing where and how people live, that that’s not necessarily consistent with the work that we need to do to free up stock, to use land in the best possible way around our growing city, and to ensure that people can make the decisions that are right for them. The Treasurer has made a number of comments in relation to the work that goes on to ease the financial decisions and burdens that people have to face in an ever‑tightening market and I’m looking forward to seeing what he has to say on the 7th of May when the Budget’s handed down.

JOURNALIST:

On the 7th of May, when the Budget’s handed down, is it likely or not likely that we’ll see changes to stamp duty?

SHING:

There’s a pretty considerable amount of speculation that we could all do here, on the rooftop of this beautiful development here. I’m looking forward to seeing the Budget on the 7th of May. I am not a betting person, so I would not want to start that habit now.

JOURNALIST:

Does the government, though, concede that it is one of the things that would stimulate the housing market and would get people to [inaudible] … its difficult to save that much money, given the current cost‑of‑living crisis.

SHING:

We do know that saving for a deposit has become harder than ever. We know that the cost of a new home has risen by about 30 per cent since 2019 and we know that our population is growing at a rapid rate of knots. We will see [inaudible] by 2050, not just planes going overhead which will probably disrupt the acoustics – what I will do is just wait until somebody tells me I can continue. We know affordability and availability is one of the most pressing set of concerns that we have and we know that saving for a deposit can be incredibly difficult for people who are wishing to buy their first home. The Homebuyers Shared Equity Fund is a key part of making sure that people can have the cost of a deposit saved for a five per cent contribution from them, met by government. This means not only do they have the security of a home that they can move into, that they can call their own – they can access the First Homebuyers Grant for $10,000. We also know that that will ensure that government can assist them with a balance of deposit being met through that shared equity fund. Again, this is about assisting thousands of people with the cost of buying and moving into their own home and it sits alongside residential rental reforms as well. We’ve made dozens of reforms to make it easier for renters to access the sorts of conditions, support and decision‑making that they deserve, and we’re in fact delivering on a range of different processes, whether it’s dispute resolution, whether it’s quicker outcomes when asking for improvements or maintenance from landlords. And we’re really determined to make sure we’re using a range of different opportunities to bring down the cost of finding and accessing a home to make sure that whether you own or whether you rent, you have an opportunity for consistent housing of a high quality that meets the needs of you and indeed your family should they be part of the mix of what’s driving you as a buyer or a consumer.

JOURNALIST:

For the federal minister – Victoria has a very ambitious housing target, 800,000 homes over 10 years. How does that stack up compared to what other states are doing? Is it the most ambitious?

COLLINS:

Well, what we want is ambition. The federal government has been incredibly ambitious. We have a national housing target of 1.2 million homes over five years from 1 July. What we’re talking about here is investing with states and territories. We also have the New Homes Bonus on the table, $3 billion to encourage the states and territories to do the reforms necessary with the levers that they have available to get more homes on the ground, more quickly. What you will see is State and Commonwealth Governments working together to get as many homes on the ground as quickly as we can. But they need to be the right homes in the right places, and they need to be suitable and what we’ve heard today from M‑R I think shows what a difference having a home – a stable home – can make to so many Australians. We know that far too many Australians don’t have a safe affordable place to call home which is why we want to work with the states and territories to get more housing on the ground as quick as we can, here in Victoria and right across the country. Here in Victoria, we’ve already provided the state government with almost $500 million in terms of the Social Housing Accelerator for social homes to get them on the ground. As I said, there’s the $3 billion New Homes Bonus on the table. Next week, the Minister for Infrastructure and I will open the Housing Support Program, another half a billion dollars for local governments and state governments to actually unlock housing developments. This is critical infrastructure. It’s also important because it will provide some funding for planning to make sure that local governments have the resources they need to get more homes on the ground more quickly. We’ve also got Building Ministers meeting today; Minister Husic, the Minister for Industry, is meeting with the Building Ministers about what can they do to get more homes on the ground more quickly. We have the Skills and Training Minister, Brendan O’Connor, meeting with the Ministers right across the country – again, prioritising housing when it comes to skills and training. We’re working right across government so that we can get more homes on the ground as quickly as we can.