3 February 2009

Fact Sheet - 2009 Updated Economic and Fiscal Outlook

Note

$6.4 Billion Public and Community Housing

The initiative will provide funding of $6 billion over three and a half years from 2008-09 to 2011-12 for the construction of new social housing and a further $400 million over two years for repairs and maintenance to existing public housing dwellings.

Questions and Answers

How many people will benefit?

  • At least 20,000 low-income households will be assisted by having access to secure and affordable public or community housing.

The initiative will boost the supply of public and community housing for people who are homeless, at risk of homelessness, or who are paying very high rental costs.

How will this initiative benefit the economy?

The initiative will also stimulate the building and construction industry, both through funding additional dwellings and increasing expenditure on repairs and maintenance. This will help stimulate businesses which supply construction materials and help to retain jobs in the industry.

When will the initiative take effect?

  • The initiative will begin immediately. It will provide $200 million this financial year for repairs and maintenance and $60 million for new construction.

How will the initiative increase the number of dwellings available?

  • At least 20,000 new social housing dwellings will be built. The actual number of new dwellings will depend on a range of factors, such as their size, type and location and the capacity of States and Territories and the not-for-profit sector to leverage additional funds from other sources.
  • The initiative will also enable around 2,500 public housing dwellings to be refurbished so that they can remain available for occupancy.

How will funding for the initiative be allocated?

  • The funding will be allocated to State and Territory Governments on a per capita basis through a new Economic Stimulus National Partnership Agreement containing a schedule on social housing subject to the jurisdiction submitting suitable proposals that meet the requirements of the initiative.
  • Community housing organisations and industry may approach their State and Territory Governments for advice on how to participate in the tender process.