Homes Victoria Submission to the Commonwealth Government's House of Representatives Standing Committee on Social Policy and Legal Affairs Inquiry ...
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Homes Victoria
Submission to the Commonwealth Government’s
House of Representatives Standing Committee on
Social Policy and Legal Affairs Inquiry into
Homelessness in Australia
December 2020
OFFICIAL: SensitiveContents
Inquiry into Homelessness in Australia ............................................................................ 3
Executive summary ............................................................................................................. 4
The incidence of homelessness ........................................................................................ 5
Factors affecting the incidence of homelessness ........................................................... 7
4.1 Inadequate Commonwealth income support levels .............................................................. 7
4.2 Affordable housing supply ..................................................................................................... 8
Victoria’s service system design and strategic orientation ......................................... 10
Victorian Government investment and initiatives.......................................................... 12
6.1 Strategic $5.3 billion investment through the Big Housing Build ......................................... 12
6.2 Homelessness service delivery investments ....................................................................... 13
6.3 Family Violence ................................................................................................................... 14
6.4 COVID-19 pandemic responses ......................................................................................... 15
Commonwealth and State Government roles ................................................................ 17
7.1 Victorian Government role ................................................................................................... 17
7.2 Commonwealth Government role ....................................................................................... 17
Conclusion ......................................................................................................................... 20
OFFICIAL: SensitiveInquiry into Homelessness in Australia
This submission is the Victorian Government’s response to the Commonwealth Government’s Inquiry
into Homelessness in Australia initiated by the House of Representatives Standing Committee on Social
Policy and Legal Affairs.
The submission addresses Terms of Reference relating to:
• the incidence of homelessness in Victoria
• factors affecting the incidence of homelessness
• opportunities for early intervention and prevention of homelessness
• services to support people and best practice approaches
• governance and funding arrangements and roles of the Victorian and Commonwealth
Government
• responses to COVID-19.
Inquiry into Homelessness in Australia Page 3
OFFICIAL: SensitiveExecutive summary
This submission is the Victorian Government’s response to the Commonwealth’s Inquiry into
Homelessness in Australia initiated by the House of Representatives Standing Committee on Social
Policy and Legal Affairs in 2020.
The incidence of homelessness in Victoria is creating a significant demand for assistance. In 2018-19
nearly 113,000 people sought help from specialist homelessness services, representing a 31 per cent
increase in demand since 2011-12. Demand is expected to increase further as the economic impacts of
CVOID-19 are experienced.
Victoria’s specialist homelessness service (SHS) system comprises 131 diverse agencies delivering
evidence-based early intervention and prevention services primarily accessed through 75 entry points
across the State. The Victorian Government has recently announced an historic $5.3 billion investment in
the delivery of social housing into the future. This is in addition to other substantial investments to
prevent and respond to homelessness across the State, including $45 million to address chronic rough
sleeping.
Since March 2020 the Victorian Government has also invested in major initiatives to prevent
homelessness and keep people safe during the COVID-19 pandemic. This includes committing $150
million to ensure stable exits for people experiencing homelessness currently accommodated in hotels.
Between 2012-13 and 2018-19, the number of SHS clients 15 years of age and older presenting without
an income to homelessness services more than doubled (increased by 140 per cent). This situation
indicates that people have increasingly exhausted their resources before seeking assistance. People are
unable to pay for housing costs if they do not have an income.
The National Housing and Homelessness Agreement (NHHA) recognises the Commonwealth and the
States have a mutual interest in improving housing outcomes across the housing spectrum, including for
Australians who are homeless or at risk of homelessness. The Commonwealth Government has had an
important role in supporting workers in specialist homelessness services through covering the Social and
Community Services Equal Remuneration Order (SACS ERO). This has enabled workers in the sector to
be paid on a par with those in other, similar industries. A loss of SACS ERO funding for agencies not
directly contracted by the Commonwealth would reduce capacity to address the needs of vulnerable
Victorians at risk of or experiencing homelessness.
Overall, the unprecedented scale of homelessness in Victoria needs to be addressed through diverse
approaches across all tiers of Government, with interventions at multiple points across the housing
continuum. Importantly, effective interventions to prevent and respond to homelessness requires strong
partnerships between Governments, working collaboratively with specialist homelessness services.
To this end, the Victorian Government commends the Commonwealth Government on its investigation
into homelessness in Australia and re-iterates its strong support for further engagement to ensure that in
Victoria and elsewhere, experiences of homelessness can be prevented or be brief and non-recurring in
order that people have the opportunity to lead healthy and productive lives that they value.
Page 4 Inquiry into Homelessness in Australia
OFFICIAL: SensitiveThe incidence of homelessness
Across Victoria there has been a notable demand for assistance from specialist homelessness services
(SHS), with nearly 113,000 people seeking help in Victoria in 2018-19.1 This represents an increase of
31 per cent between 2011-12 and 2018-19.2 A further surge in demand for SHS assistance is expected
as the economic impacts of COVID-19 pandemic are fully experienced. Additionally, the actual incidence
of homelessness in Victoria may be higher given that not all people who are homeless or at risk of
homelessness seek help from homelessness services.
Data from funded agencies show that homelessness can happen to anyone – single adult men and
women, and families with dependent children – with some groups more vulnerable. These include:
Aboriginal Victorians, children and young people (including young people transitioning from out of home
care), older people, people with a disability, people from culturally and linguistically diverse communities
and LGBTIQ+ people.
Triggers for homelessness are also diverse and involve social, economic and policy factors. In practical
terms these factors include: an insufficient supply of affordable private rental and social housing, service
system limitations, inadequate Commonwealth Government income support and population growth.
While there are myriad reasons for people becoming homeless and seeking support, in 2018-19 the
three main reasons people sought assistance from Victorian specialist homelessness services were:
• family violence (44 per cent)
• financial difficulties (44 per cent) and
• housing crisis (37 per cent).3
Data from homelessness services show the profile of people seeking assistance in Victoria has changed.
Over the period 2011-12 to 2018-19 there were:4
• A growing proportion of people who are older – those aged 55 years and over now represent
1 in 10 people – a doubling over the last decade.
• More people sleeping rough – 6 per cent of clients who are homeless are sleeping rough – up
from 4.5 per cent over the decade.
• More families presenting for assistance – 63 per cent of clients are families (up from 53 per
cent over the decade).
• Increasing proportion of clients are Aboriginal and Torres Strait Islander people – 10 per
cent (up from 6 per cent over the last decade).5
• Greater diversity in client cohorts – 14 per cent are people from non-main English-speaking
backgrounds and 3 per cent have a disability.
• Rising homelessness in regional Victoria – around one in four clients engaged with services
live in regional Victoria.
1
Australian Institute of Health and Welfare (2019) Specialist Homelessness Services Annual Report, 2018-19,
https://www.aihw.gov.au/reports/homelessness-services/shs-annual-report-18-19/contents/summary.
2
https://www.ahuri.edu.au/research/ahuri-briefs/growth-in-lower-income-rental-households-outstrips-other-households.
3
AIHW Specialist homelessness services 2018–19: Victoria, https://www.aihw.gov.au/getmedia/29e84edc-c552-4f5d-b11a-
1c14011ddca8/VIC_factsheet-20-05-2020.pdf.aspx
4
Australian Institute of Health and Welfare (2019) Specialist Homelessness Services Collection - Demographics Data-cube 2011-
12 to 2018-19, https://www.aihw.gov.au/reports/homelessness-services.
5
https://www.vahhf.org.au/cms_uploads/docs/victorian-aboriginal-housing-and-homelessness-framework_complete_26_02_20.pdf.
Inquiry into Homelessness in Australia Page 5
OFFICIAL: SensitiveThe following points are highlighted:
• In 2018-19, four in 10 (40% or almost 2,900 clients) people accessing SHS services in
Victoria had a severe or profound disability.6 Access to Commonwealth support, particularly
through the National Disability Insurance Scheme, that enables appropriate and sometimes
specialist housing and support, is critical to preventing homelessness for people in these groups.
• Victoria recorded the highest number of SHS clients aged 55 years and over (more than
11,800) representing almost half (49%) of this client group in Australia in 2019-20.7 This raises
concerns about a lack of access to accommodation and aged-care services for people who need
it. Interventions through Commonwealth income support and rental assistance are also needed
to help address financial insecurity and prevent homelessness. Enabling people to remain
housed and where necessary to easily source aged-care assistance is critical to enabling
vulnerable older people to also preserve their mental health and wellbeing.
• 40 per cent of people accessing the SHS system were unemployed and a further 45 per cent
were not in the labour force.8 (Commonwealth income support is discussed further in 4.1 of this
submission.)
6
https://www.aihw.gov.au/reports/homelessness-services/shs-annual-report-18-19/contents/client-groups-of-interest/clients-with-
disability (Supplementary table DIS.2).
7
https://www.aihw.gov.au/reports/homelessness-services/specialist-homelessness-services-annual-report/contents/older-clients.
8
file:///C:/Users/ebut2009/Downloads/5e2a332ba2821-Vic%20Homelessness%20inquiry%20AIHW-submission.pdf.
Page 6 Inquiry into Homelessness in Australia
OFFICIAL: SensitiveFactors affecting the incidence of
homelessness
The incidence of homelessness is broadly influenced by structural and systemic conditions. In Victoria,
inadequate income levels to afford rental accommodation and retain housing as well as a lack of
affordable housing supply have contributed to increased demand on the SHS system.
4.1 Inadequate Commonwealth income support levels
In 2017-18, 52,824 clients seeking assistance from the Victorian SHS system (approximately 76 per cent
of clients aged 15+ years) reported Commonwealth income support as their main income source. Within
this cohort, 35 per cent were on the Newstart Allowance, 23 per cent on the Disability Support Pension
and 21 per cent were in receipt of the Parenting Payment. 9 All three of these payments have been
subject to significant change in policy settings at the Commonwealth level over the last decade or longer.
This includes an increase in mutual obligation requirements.
Research led by Tony Nicholson, Executive Director of the Brotherhood of St Laurence in 2017 10
additionally showed that of those people sleeping rough in Victoria, 45 per cent were receiving Newstart
or Youth Allowance payments and deemed able to work. This is despite the many hurdles people
sleeping rough may be experiencing and their ability to look for work and meet all their obligations under
Centrelink rules being seriously impaired by factors beyond their control.
In addition to those people with limited income, between 2012-13 and 2018-19, the number of SHS
clients 15 years of age and older presenting without any income to homelessness services more than
doubled (increased by 140 per cent).11 A comparison of annual data over 2018-19 and 2019-20 shows
that when presenting to services, SHS clients with no income were more likely to be homeless than all
presenting clients and also were more likely to be sleeping rough or living in an inadequate dwelling (10
per cent compared with 8 per cent). To help address this scenario, strategies are needed to ensure
vulnerable people are assisted to access available Commonwealth income supports as people are
unable to pay housing costs if they do not have an income.
Commonwealth income supports also need to be pitched at levels that enable people to remain housed.
Research shows the number of lower income rental households in housing affordability stress (paying
more than 30 per cent of household income in housing costs) grew by 63.2 per cent (to 145,770
households) between 2007-08 and 2017-18.12 Additionally, there is a large and growing gap between
Commonwealth Rental Assistance payments (that is linked to the consumer price index) and market
rental prices in Victoria.13 Failure to adequately index income supports is making an already difficult
situation worse and is contributing to housing stress and homelessness.
9
Slide 3,
https://www.parliament.vic.gov.au/images/stories/committees/SCLSI/Inquiry_into_Homelessness_in_Victoria/presentatioins/DHHS
_Presentation_Homelessness_Hearing_20200909.pdf.
10
http://chp.org.au/wp-content/uploads/2017/06/Rough-sleeping-in-Victoria-Situation-appraisal.pdf.
11
SHSC data cubes as at 2/12/20.
12
Australian Housing and Urban Research Institute (2019), Growth in lower income rental households outpaces other households,
https://www.ahuri.edu.au/policy/ahuri-briefs/growth-in-lower-income-rental-households-outstrips-other-households.
13
Productivity Commission (2019) Vulnerable Private Renters: Evidence and Options,
https://www.pc.gov.au/research/completed/renters.
Inquiry into Homelessness in Australia Page 7
OFFICIAL: Sensitive4.2 Affordable housing supply
Every Victorian deserves the safety and security of a home. 14 However, saving for a deposit or paying a
home loan is a challenge for many Victorians. Additionally, many households on low incomes struggle
with the costs of private rental accommodation and require access to social housing to address their
need for affordable housing.
4.2.1 Population change
Victoria is facing a period of unprecedented growth and change. The state’s population passed 6.6
million in June 2019 and is forecast to grow to 11.2 million by 2056.15 The number of households across
Victoria is forecast to increase by over 700,000, or approximately 30 per cent, over the period to 2031.
Along with this change, the demographics of Victorian households have also shifted towards:
• increasing proportion of smaller households (singles or couples with no children)
• fewer young people entering home ownership compared to previous generations
• people are living for longer and a growing proportion of elderly households are in insecure
housing.
4.2.2 Affordable housing
While Victoria’s population growth and change presents opportunities for the State, it is also a driver of
housing affordability challenges. In particular, more people are renting than ever before, resulting in a
competitive rental market. In these conditions, it is harder to secure an affordable home to rent,
particularly in Metro Melbourne and major regional centres. In June 2020, only 8.6 per cent of new
rentals in metropolitan Melbourne were affordable for households on Centrelink incomes and less than
one per cent of one-bedroom properties in Melbourne were affordable to single people on low-income.16
Notably, one in ten renters pay more than 30 per cent of household income towards rent (a common
indicator of rental stress).17 The incidence is even higher for those on Commonwealth Rent Assistance
with 39 per cent paying more than 30 per cent of income on rent.18
A lack of 'affordable housing' in the private sector means that many low income and disadvantaged
households are priced out of the market completely and face severe financial hardship or homelessness
due to the lack of safe, secure and affordable rental accommodation.
The availability of social housing is also constrained. In Victoria in 2018-19 there were 85,000 social
housing properties19 and over 43,000 households have applied for social housing through the Victorian
Housing Register, with more than half of these having priority needs. However, the lack of supply has
meant few households been offered accommodation. In 2017-18 approximately 2,700 new households
were assisted into public housing, 1,900 into community housing and 340 into Indigenous community
housing.20
More specifically, the lack of a supply of appropriate social and affordable housing has created a
significant bottle neck with the homelessness system struggling to provide an enduring housing outcome,
14
p. 3, 2017, Homes for Victorians, Victorian Government. https://www.vic.gov.au/sites/default/files/2019-08/Homes-for-
Victorians.pdf.
15
Victoria in Future, July 2019, Department of Environment, Land, Water and Planning.
16
Rental report, June 2020, Department of Health and Human Services https://www.dhhs.vic.gov.au/publications/rental-report
17
Census 2016, Australian Bureau of Statistics.
18
Report on Government Services 2020, Housing Chapter, Productivity Commission,
https://www.pc.gov.au/research/ongoing/report-on-government-services/2020/housing-and-homelessness/housing.
19
DHHS (2019) Annual Report 2018-19, Housing Assistance additional service delivery data 2018-19,
https://www.dhhs.vic.gov.au/publications/annual-report-department-health-and-human-services.
20
Productivity Commission (2019) Report on Government Services 2019.
Page 8 Inquiry into Homelessness in Australia
OFFICIAL: Sensitiveparticularly for people who experience repeated or ongoing homelessness. People in crisis
accommodation and transitional housing experience extended waits for long term social and affordable
housing, while at the same time new clients continue to seek assistance from a service system at
capacity.
Housing is a joint Commonwealth-State responsibility with the National Housing and Homelessness
Agreement specifically noting that:
The Commonwealth and the States recognise that they have a mutual interest in
improving housing outcomes across the housing spectrum, including outcomes for
Australians who are homeless or at risk of homelessness, and need to work together to
achieve those outcomes.21
At different times, both Commonwealth and State Governments have worked in partnership to invest
much-needed additional social housing that delivers both social and economic outcomes. For example,
the 2009 Social Housing Initiative saw the Commonwealth invest $5.2 billion across Australia, which was
leveraged by the States and Territories to deliver around 19,700 new social housing properties. In doing
so, it helped to create around 9,000 jobs and support economic activity in the wake of the Global
Financial Crisis.22
The 2020-21 Commonwealth Budget provided a boost to the National Housing Finance and Investment
Corporation bond aggregator from $2 billion to $3 billion23 which will provide much needed low-cost and
longer-term finance to the community housing sector. The Victorian Government is supportive of the
bond aggregator and the opportunities that it can bring. When used in combination with land or other
capital subsidies, it has the potential to accelerate the potential growth outcomes for social housing.
However, the Commonwealth Budget failed to provide any additional capital funding for new social
housing growth, which would have generated new construction to supports jobs and economic stimulus
post COVID19. This is in contrast to the Victorian Government’s most notable and significant investment
in this area through the $5.3 billion Big Housing Build that is further described in section 6.1 of this
submission.
The Victorian Government has a crucial role to play in the provision and delivery of social and affordable
housing, but it can’t tackle a task of this magnitude alone. The Commonwealth Government has
additional levers at its disposal including adequacy of Centrelink income support and taxation settings
which impact on the housing market and can directly or indirectly influence ownerships and rental
affordability. In addition, Commonwealth co-funding for Victorian National Rental Affordability Scheme
properties, of which there are 5,500 are due to expire by 2025.24 Additional investment by the
Commonwealth is needed to help support social housing growth.
21
https://www.federalfinancialrelations.gov.au/content/npa/other/other/NHHA_Final.pdf
22
https://www.dss.gov.au/sites/default/files/documents/11_2013/social_housing_initiative_fact_sheet.pdf.docx#:~:text=The%20Soci
al%20Housing%20Initiative%20(SHI,expired%20on%2031%20December%202012.
23
Commonwealth Budget 2020-21. Budget Paper 2, https://budget.gov.au/2020-21/content/bp2/download/bp2_complete.pdf.
24
National Rental Affordability Scheme - Performance Reporting June 2020, Department of Social Services.
Inquiry into Homelessness in Australia Page 9
OFFICIAL: SensitiveVictoria’s service system design and
strategic orientation
In practical terms Victoria’s SHS system assists over 100,000 Victorians per year. The system comprises
131 agencies funded through a combination of Commonwealth and Victorian Government funding of
approximately $300 million annually.25 The work of the State’s SHS system is informed by evidence and
contextualised by Victoria’s Homelessness and Rough Sleeping Action Plan 26 (Plan) that provides the
strategic framework for preventing and responding to homelessness. The Plan has the following
objectives:
• Intervening early to prevent homelessness and rough sleeping or to minimise the duration or
impact of homelessness when it occurs. In this context preventing homelessness contributes to
reducing the incidence and impacts of rough sleeping and stops the flow of people into
homelessness whereas early intervention activities aim to minimise the impacts of
homelessness and rough sleeping.
• Providing stable accommodation as quickly as possible, seeking to provide appropriate
accommodation and support options to resolve crisis and avoid ongoing homelessness.
• Support to maintain stable accommodation to ensure people experiencing chronic
homelessness or who are at risk of doing so become resilient to future housing loss.
• An effective and responsive homelessness service system, ensuring a coordinated,
sustainable and informed sector is enabled to work flexibly with each individual to resolve and
prevent future homelessness.
Service delivery approaches are based on delivering a tailored approach, that is proportionate to need,
given that people experiencing or at risk of homelessness require different housing and support
responses. In brief, service delivery responses are focused on the following to reflect the Plan’s strategic
imperatives:
• early intervention assistance for people with low support needs and who are at imminent risk of
homelessness
• specialist and target support for people with increased vulnerabilities and risks who are
experiencing homelessness but require only time-limited assistance albeit potentially from
multiple agencies
• ongoing support for people with multiple, complex and enduring support needs, who have often
experienced chronic homelessness and rough sleeping.
These approaches have been the focus of Victorian Government investments through the Plan and will
continue to inform service system approaches in the future. Examples of effective approaches identified
in the Plan include:
• Assertive outreach services located in the City of Melbourne and in suburban, regional and
rural areas where there is an identified need. This approach is supported through proactive
referrals, rapid rehousing, tailored and flexible support as well as easy access to services.
• The Private Rental Assistance Program (PRAP) that helps people find and maintain tenancies
in the private rental market, keeping them out of homelessness. This assistance is available
25
https://www.parliament.vic.gov.au/images/stories/committees/SCLSI/Inquiry_into_Homelessness_in_Victoria/Submissions/S423_-
_Department_of_Health_and_Human_Services_-_Director_of_Housing_Redacted.pdf.
26
https://www.dhhs.vic.gov.au/sites/default/files/documents/201802/Rough%20Sleeping%20Action%20Plan_20180207.pdf.
Page 10 Inquiry into Homelessness in Australia
OFFICIAL: Sensitivethrough homelessness services across the State and is used to cover costs such as rent, bond,
household items and removalists. In the last financial year, the program helped 6,000
households acquire and retain private rental accommodation. In October 2019 the program was
extended to ensure that more support workers and tenancy brokers were employed to help
prevent tenancy breakdowns and to address barriers to securing private rentals by seeking
appropriate and affordable properties.27 In support of self-determination, the Victorian
Government launched an Aboriginal-specific PRAP program in February 2020 to help tackle and
prevent homelessness for Aboriginal people across the State.28
• Housing First approaches based on international evidence of effectiveness in addressing
homelessness and delivering sustainable housing outcomes. Effective Victorian initiatives have
included:
- The Melbourne Street to Home program (in which 70 per cent of Street to Home clients
remained housed after 24 months and 80 per cent retained housing for one year or longer,
whilst also reducing hospital presentations).
- A Journey to Social Inclusion (J2SI) pilot in which 85 per cent of participants had maintained
long term stable housing at the end of the three-year program.
The Plan is critical in orienting the SHS system and ensuring staff are appropriately skilled and supported
to deliver evidence-informed approaches. The Plan additionally articulates the ongoing need for system
reform to ensure service delivery encompasses contemporary, evidence-informed and targeted
approaches.
27
https://www.premier.vic.gov.au/more-rental-support-keep-victorians-homes.
28
https://hnb.dhs.vic.gov.au/web/pubaff/medrel.nsf/2b4e916ca12caa334a2565ae001c601d/7d7faeefa4aaba12ca25851b000dc3c7?
OpenDocument.
Inquiry into Homelessness in Australia Page 11
OFFICIAL: SensitiveVictorian Government investment and
initiatives
To support homelessness prevention, early intervention and sustainable housing outcomes, the Victorian
Government invests in practical as well as strategic initiatives. Key homelessness investments and
interventions are outlined further in this section along with broader strategic initiatives.
6.1 Strategic $5.3 billion investment through the Big Housing Build
On Monday 16 November 2020 the Victorian Government announced its $5.3 billion investment in the
Big Housing Build, that is intended to boost social housing stock in Victoria by 10% over the next four
years. This represents the single largest investment in social and affordable housing in Victoria’s history
and will result in a notable growth of social housing stock, thereby enabling an increasingly effective
response to homelessness.29
The investment will specifically result in over 12,000 new homes including 9,300 social housing and
2,900 mainly affordable housing dwellings. The package comprises the following:
• $532 million for building new homes on public land resulting in 500 new social housing and 540
new affordable and market properties.
• $948 million to construct and purchase existing residential properties across Victoria to deliver
1,600 new social housing properties and 200 affordable homes.
• $1.38 million to fund projects by the community housing sector through the Social Housing
Growth Fund to deliver up to 4,200 homes and
• $2.14 billion for partnerships with private and community housing sectors to build on surplus
government-owned sites to deliver up to 5,200 new homes.
The program will also result in wide ranging social and economic benefits and deliver significant
outcomes for Aboriginal people, vulnerable cohorts and regional communities that include:
• 10 per cent of all net new dwellings will support Aboriginal housing needs.
• The growth in housing for Aboriginal Victorians will be delivered by a combination of Aboriginal
Community Controlled Organisations and mainstream housing providers. These initiatives will
support self-determination and enable Aboriginal people to have choice about who provides their
housing.
• Assisting 2,000 Victorians with mental illnesses through the Big Housing Build investment.
• Delivering 25 per cent of the total program in regional and rural Victoria.
• Providing a safety net for low-income and in-need Victorians.
Importantly, the above investment will enable pathways into secure and stable housing. In addition, $300
million and $75 million ongoing will be available to deliver public housing improvements.
The above notable commitment builds on earlier capital works announcements of:
• The latest tranche of 780 social housing dwellings funded through the Social Housing Growth
Fund.30
29
https://www.vic.gov.au/sites/default/files/2020-11/hv_more_homes_for_more_Victorians_0.pdf.
30
https://www.vic.gov.au/social-housing-growth-fund.
Page 12 Inquiry into Homelessness in Australia
OFFICIAL: Sensitive• $209 million committed in the 2019-20 Budget for the construction of 1,000 new public housing
properties across Victoria.31
• $185 million Public Housing Renewal Program.32
• $112 million for energy efficient upgrades to social housing. 33
6.1.1 Creation of Homes Victoria
The Victorian Government established Homes Victoria to grow and manage Victoria’s social housing and
homelessness systems. Homes Victoria will have a stewardship role and pursue reforms to enable a
sustainable and effective homelessness, social and affordable housing system and will actively
collaborate with the Local Government and Community Housing sectors. Key reforms to be undertaken
include:
• a ten-year strategy for social and affordable housing
• a review of Victoria’s social housing regulatory system and a Community Housing sector
development fund to build a stronger and more capable housing system
• investment of additional $300 million over the next four years to upgrade the quality of public
housing
• a ‘Social and Affordable Housing Compact’ to establish a new partnership between Homes
Victoria and local government, to promote collaboration and increase social and affordable
housing across Victoria.
In all, the Victorian Government’s investments and strategic leveraging reflect the need for contemporary
approaches to homelessness prevention and intervention to be multi-faceted and dynamic given the
diverse ways in which homelessness can occur.
6.2 Homelessness service delivery investments
Victoria’s SHS system delivers a suite of effective interventions such as: assertive outreach, case
managed support, brokerage and flexible funding to provide personalised and flexible responses, crisis
and transitional accommodation, supportive housing for tenants with complex needs and help to enter
the private housing market through headleasing and private rental assistance. These services are
generally accessed via 75 dispersed entry points, including specialist entry points to assist young people,
Aboriginal Victorians and women and children experiencing family violence. Complementing face-to-face
services, two state-wide phone lines – for people in housing or family violence crisis – operate around
the clock, linking to the local entry points, so that people can access assistance whenever and wherever
they need it.
The following are examples of key financial investments directed to addressing homelessness:
• $50.4 million for homelessness services in the 2019-20 Victorian Government’s budget.34 This
includes investment in: after-hours support for people in housing crisis; on-site treatment in three
crisis supported accommodation services; help for people at risk of homelessness to access
private rental housing, through the Private Rental Assistance Program (PRAP) and PRAP Plus,
and a $3 million LGBTIQ+ homelessness grants program. 35 Funding will also support 40 young
people living at the Kangan Education First Youth Foyer to achieve educational and life goals.
31
https://www.dhhs.vic.gov.au/buildingnewhomes.
32
https://www.dhhs.vic.gov.au/public-housing-renewal-
program#:~:text=The%20%24185%20million%20Public%20Housing,across%20metropolitan%20and%20regional%20sites.
33
https://www.victorianenergysaver.vic.gov.au/victorias-household-energy-savings-package.
34
https://www.budget.vic.gov.au/addressing-homelessness.
35
https://www.parliament.vic.gov.au/images/stories/committees/paec/2019-
20_Budget_Estimates/Transcripts_and_tabled_docs/2019-20_BEH_Equality_Verified_Transcript.pdf.
Inquiry into Homelessness in Australia Page 13
OFFICIAL: Sensitive• Additionally, in its 2019-20 budget the Victorian Government committed $3 million to support
specialist asylum seeker mainstream health and human service agencies (including housing), to
strengthen service responsiveness. Of this, $780,000 has been targeted for housing and
homelessness support.
• $45 million over four years for implementation of Victoria’s Homelessness and Rough Sleeping
Action Plan including:
- $19 million over two years for assertive outreach teams in areas of greatest need across
the state to seek out people sleeping rough and connect them with safe accommodation,
health services and ongoing support.
- $9 million over two years for supportive housing teams to tackle chronic homelessness and
deliver individual support to vulnerable people to access and maintain long-term housing.
- $13 million for additional accommodation units with onsite support including three new
modular housing sites to provide 20 homes for tenants.
- $4.5 million to the reform of adult crisis supported accommodation, providing improved
responses to people sleeping rough.
• $9.8 million Towards Home response, released in January 2017.
• $5.3 million to fund initiatives such as an Aboriginal-specific PRAP, community engagement
activities, the exploration of future investment in Aboriginal housing and the continuation of the
More Than a Landlord Program. These investments were announced on 26 February 2020 after
the Victorian Government received the Victorian Aboriginal Housing and Homelessness
Framework - Mana-na worn-tyeen maar-takoort: Every Aboriginal Person Has a Home, that was
based on extensive community consultation.
Investments such as the above contribute to the delivery of cohesive services across the State.
6.3 Family Violence
Family violence is a key driver of demand for housing assistance. The Victorian Government accepted all
227 recommendations from Australia’s first Royal Commission into Family Violence, that reported in
2016.36 Investments to ensure people are safe from family violence include the following:
• $152 million for the Family Violence Housing Blitz, released in April 2016 to provide victim
survivors of family violence with improved access to housing options that deliver safe, affordable
and appropriate housing, and supports to recover and thrive. 37
• $23.9 million over four years for Family Violence Refuge and Crisis Case Management
responses announced in 2019. This investment provides additional support for 24-hour
operations at recently redeveloped family violence refuges, additional flexible funding for women
on temporary visas without an income, and support for victim survivors in motels and other forms
of emergency accommodation38
• $40.2 million over two years for crisis accommodation and specialist support for people
experiencing family violence and in response to increased service demand as a result of the
COVID-19 pandemic.39
36
https://www.vic.gov.au/family-violence-recommendations.
37
Family Violence Housing Blitz Package evaluation (executive summary) https://www.vic.gov.au/family-violence-housing-
assistance-implementation-taskforce.
38
https://s3-ap-southeast-2.amazonaws.com/budgetfiles201920.budget.vic.gov.au/2019-20+State+Budget+-+Service+Delivery.pdf.
39
https://www.parliament.vic.gov.au/images/stories/committees/SCLSI/Inquiry_into_Homelessness_in_Victoria/presentatioins/DHH
S_Presentation_Homelessness_Hearing_20200909.pdf.
Page 14 Inquiry into Homelessness in Australia
OFFICIAL: Sensitive• Up to 1,000 homes for family violence survivors through Victoria’s recent ‘Big Housing Build’
announcement.40
Since 2016, the Victorian Government has also acquired 325 long term social housing dwellings and
head leased 355 private dwellings and prioritised family violence victim survivors and their families for
social housing through the Victorian Housing Register.
The above investments are beyond current commitments of redeveloping 17 family violence refuges and
constructing two new Aboriginal refuges as well as providing over 6,500 flexible support packages each
year to help victim survivors and supporting over 1,800 people with private rental assistance.
6.4 COVID-19 pandemic responses
Since March 2020 the Victorian Government has invested in homelessness responses to the COVID-19
pandemic, including major initiatives to keep people experiencing homelessness safe. This has included
the following:41
• $6 million for the PRAP and Housing Establishment Fund (HEF) for homelessness services to
provide temporary housing and private rental brokerage.
• $9.8 million to continue to support people in emergency accommodation, including additional
HEF to keep people in safe accommodation and additional specialist support workers, including
drug and alcohol support.
• $15.73 million additional HEF, plus additional $3.28 million in PRAP and new funding for intake
and specialised support workers.
• $8.8 million to establish four facilities to help people experiencing homelessness recover from
COVID-19 or avoid infection in the first place. Service is a collaboration between a major hospital
and homelessness service providers. Model includes embedded mobile fever clinic. This
includes employment of specialist Aboriginal homelessness workers in areas where there are
higher numbers of Aboriginal people experiencing homelessness.
• nearly $500 million to build and upgrade community and public housing, as part of the broader
$2.7 billion Building Works package dedicated to creating jobs and boosting Victoria’s economic
recovery from the coronavirus pandemic. $125million of this will be targeted to projects that
improve and increase much needed housing options for women and children escaping family
violence, Aboriginal Victorians, and people leaving State Government services. In doing so it will
help more Victorians experiencing or at risk of homelessness receive the safe, stable and secure
accommodation they need.42
• $19.527 million to ensure presenting households could be provided with temporary
accommodation as part of the public health response.
As necessary, homelessness services guidelines have been updated as necessary to assist
homelessness services when responding to the coronavirus (COVID-19) pandemic.43
The emergency response currently includes the following outputs:44
• an estimated 2,253 households currently accommodated
40
https://www.vic.gov.au/a-place-to-call-home.
41
https://www.parliament.vic.gov.au/images/stories/committees/SCLSI/Inquiry_into_Homelessness_in_Victoria/presentatioins/DHH
S_Presentation_Homelessness_Hearing_20200909.pdf.
42
https://www.premier.vic.gov.au/victorias-big-housing-build-0
43
https://www.dhhs.vic.gov.au/housing-and-homelessness-coronavirus-covid-19
44
https://www.parliament.vic.gov.au/images/stories/committees/SCLSI/Inquiry_into_Homelessness_in_Victoria/presentatioins/DHH
S_Presentation_Homelessness_Hearing_20200909.pdf
Inquiry into Homelessness in Australia Page 15
OFFICIAL: Sensitive• 6,000 estimated household requests emergency accommodation met by homelessness agencies
- 18,500 individual requests
• 566 households exited into private rental - some may have benefited from PRAP in obtaining
private rental.
The above activities have been supported by broader government measures such as $80 million Rental
Relief Grant ($3,000 per allocation) for Victorian tenants who have lost income as a result of the
coronavirus (COVID-19) and who are experiencing rental hardship by paying more than 30 per cent of
their income in rent.45
6.4.1 From Homelessness to a Home $150 million investment package
In July 2020, the Victorian Government announced the From Homelessness to a Home package. This
$150 million investment will support people experiencing homelessness currently being accommodated
in hotels and provide them with access to stable housing and wrap-around support. The package
includes:46
• headleasing properties from the private market and purchase of social housing properties to
ensure people in hotels exit to sustainable accommodation options. Access to social housing
through the Victorian Housing Register is also a strong component of this investment
• funding to support private rental exits where this is appropriate and sustainable
• provision for flexible, tailored support to be delivered to meet people’s needs, including mental
health, drug and alcohol and family violence support.
A call for submissions to deliver services as part of the above package was released in September 2020.
6.4.2 Family violence homelessness COVID-19 responses
In April 2020, the Victorian Government announced an investment of $40.2 million over two years for crisis
accommodation and specialist support for people experiencing family violence (highlighted above). This
funding comprises:47
• $20.2 million to help Victorian family violence and sexual assault services meet the expected
increase in demand.
• $20 million for short-term accommodation for victim survivors who do not feel safe isolating or
recovering from coronavirus at home.
In August 2020, the Victorian Government announced an additional $20 million to perpetrator services to
help keep more family violence victim survivors safe in their own homes. This funding supports
perpetrators of family violence, or people who are at risk of using violence, to leave the family home and
move into short or long-term accommodation.48
The Victorian Government’s pro-active approach to addressing homelessness during the pandemic has
kept vulnerable people safe and is facilitating sustainable housing exits with tailored support that will
prevent returns to homelessness and chronic rough sleeping.
45
https://www.dhhs.vic.gov.au/housing-and-homelessness-coronavirus-covid-19
46
https://fac.dhhs.vic.gov.au/news/homelessness-home-call-submission-sector-briefing-monday-28-september-
2020#:~:text=The%20Victorian%20Government's%20%24150%20million,services%20up%20to%2024%20months.
47
https://www.parliament.vic.gov.au/images/stories/committees/SCLSI/Inquiry_into_Homelessness_in_Victoria/presentatioins/DHH
S_Presentation_Homelessness_Hearing_20200909.pdf.
48
https://www.premier.vic.gov.au/keeping-family-violence-sight-during-coronavirus.
Page 16 Inquiry into Homelessness in Australia
OFFICIAL: SensitiveCommonwealth and State Government roles
The Commonwealth, State and Territory Governments have joint responsibility for housing and
homelessness. This joint responsibility is reflected in the National Housing and Homelessness
Agreement (NHHA),49 which recognises the Commonwealth and the State's mutual interest in improving
housing outcomes across the housing spectrum, including outcomes for Australians who are homeless
or at risk of homelessness, and the need to work together to achieve those outcomes.
The aspirational outcomes of the NHHA in addressing housing and homelessness are a shared
responsibility of both levels of government. However as identified earlier in this submission with regard to
the Victorian Government’s interventions, capacity to achieve these outcomes is influenced by policies,
programs and initiatives funded outside of the agreement. The Commonwealth Government also has a
critical role to play in preventing and responding to homelessness and this requires leveraging policy and
deploying interventions in areas such as: income support, taxation, migration and direct investment.
These interventions all have an impact on housing supply, housing utilisation and on the level of
homelessness and social housing demand.
It is essential that the Commonwealth and States and Territories work together to address homelessness
and housing insecurity and its drivers, and that each uses its levers to their best effect. It is important for
both parties to integrate services to better support people experiencing or at risk of homelessness,
including income support, employment services and state homelessness services, to provide a cohesive
and joined up response that ensures fewer service system gaps.
7.1 Victorian Government role
In response to unprecedented demand, the Victorian Government is taking the lead by addressing
vulnerability and housing insecurity through key reforms across the SHS system and in housing
assistance interventions. These reforms were announced in Victoria’s Homelessness and Rough
Sleeping Action Plan.
Achieving meaningful change through these reforms requires a shared understanding across the service
system and government of what works in addressing homelessness and scaling up approaches that
demonstrate good outcomes, supports innovation and delivers public value.
To drive the service system the Victorian Government is looking at ways to embed more effective,
contemporary evidence-based models that respond to the specific needs of client cohorts and that takes
into account their interactions with other service systems such as hospital and community health,
disability, mental health, justice, family violence, child protection and alcohol and other drugs.
The role of the Victorian Government in preventing and responding to homelessness has also involved
introducing other policy and strategic reforms. The $5.3 billion Big Housing Build investment is a practical
example of leveraging significant change through policy, planning and other mechanisms to build social
and affordable housing and in the process contributing to the prevention of and response to
homelessness wherever it occurs across the State.
7.2 Commonwealth Government role
In addressing the complexity of homelessness, the Commonwealth also has a role to play and can
activate distinct levers to address and prevent housing insecurity and homelessness.
The Commonwealth’s role in relation to income support, taxation, financial regulation, rules relating to
foreign investment and migration all have an impact on housing supply, housing utilisation levels and on
49
http://www.federalfinancialrelations.gov.au/content/housing_homelessness_agreement.aspx.
Inquiry into Homelessness in Australia Page 17
OFFICIAL: Sensitivethe level of homelessness and social housing demand. Historically the Commonwealth has also made
direct investment in the supply of social housing alongside state and territory governments, including
most recently through the Nation Building Social Housing Initiative in 2009.
As noted earlier in this submission people receiving Commonwealth income support payments face
difficulties in accessing affordable housing. Before recent temporary increases to Commonwealth income
support due to COVID-19, Newstart Allowance was below standard benchmarks for income adequacy
and poverty.50 There is also a growing gap between the rate of Commonwealth Rental Assistance
payments (which are linked to the consumer price index) and market rental prices. As noted in section
4.2.2, recent research shows that only half of one per cent of all one-bedroom lettings in metropolitan
Melbourne’s private rental market are affordable for those reliant on income support payments. 51
Interventions in these areas through using income support levers would complement the work of the
Victorian Government in preventing and responding to homelessness.
The above example particularly demonstrates that the challenges of housing and homelessness are
complex and demand a partnership approach across governments. To tackle these problems, the
Victorian Government encourages the Commonwealth to work in a genuine partnership with States and
Territories and use the levers it has at its disposal to improve outcomes for vulnerable Australians.
The Commonwealth provides payments to States and Territories for housing and homelessness under
the NHHA. The NHHA commenced on 1 July 2018 and is expected to provide Victoria with
approximately $415 million in 2020-21. The NHHA replaced two previous agreements – the National
Affordable Housing Agreement and the National Partnership Agreement on Homelessness. The NHHA
does not provide any increase in funding to support frontline housing and homelessness services or an
increase in social housing beyond the previous agreements, despite the rise in demand for these
supports (an increase of 31 per cent between 2011-12 and 2018-19).52 Further, funding under the NHHA
is only sufficient to support maintenance of baseline social housing and homelessness services and is
not enough to support meaningful change to the incidence of homelessness, increased social housing
supply, wrap-around support to sustain social housing tenancies or an increase in housing affordability.
NHHA funding is distributed according to population share and indexed according to Wage Cost Index 1
(WCI1), which is generally a lower rate than the Consumer Price Index and does not reflect the real
rising cost of providing services or delivering housing. Due to the use of this methodology, Victoria is
expected to lose $20 million of base Commonwealth funding through the NHHA between 2020-21 and
2022-23.
Under the NHHA, distribution of dedicated Commonwealth funding for homelessness to States and
Territories is based on the share of the homelessness population at the time of the 2006 Census. This
data is 14 years out of date, and the results of two Censuses have been released since this time. The
continued use of this data has resulted in funds not being directed based on current need. It is
inappropriate to continue using this data when more recent data is available.
The Victorian Government would welcome an opportunity to work with the Commonwealth to update the
NHHA to use the most recent data and a method of indexation that better reflects the costs of delivering
housing and homelessness services.
7.2.1 Social and Community Services Equal Remuneration Order (SACS ERO)
funding via the NHHA
The NHHA includes Commonwealth funding for Social and Community Services Equal Remuneration
Order (SACS ERO) up to 2020-21, worth approximately $20 million to Victoria in 2020-21. These funds
50
http://povertyandinequality.acoss.org.au/wp-content/uploads/2020/02/Poverty-in-Australia-2020_Part-1_Overview.pdf.
51
p. 19, https://www.dhhs.vic.gov.au/publications/rental-report.
52
Australian Institute of Health and Welfare (2019) Specialist Homelessness Services Annual Report, 2018-19,
https://www.aihw.gov.au/reports/homelessness-services/shs-annual-report-18-19/contents/summary.
Page 18 Inquiry into Homelessness in Australia
OFFICIAL: Sensitiveare passed on to organisations providing critically important family violence, housing and homelessness
services, to supplement the wages of staff in accordance with the SACS ERO.
The 2020-21 Commonwealth Budget released on 6 October 2020 did not include funding to States and
Territories via the NHHA for the SACS ERO beyond 30 June 2021. It does, however, include SACS ERO
funding for organisations which the Commonwealth contracts and funds directly.
A loss of Commonwealth SACS ERO funding would represent a $100 million reduction in funds to
Victorian organisations funded under the NHHA over four years and $23.2 million in 2021-22. An end to
Commonwealth SACS ERO funding would result in a funding cut to approximately 260 organisations that
deliver critical homelessness, family violence and tenancy support services in Victoria. Funding cuts
would likely affect financial status, staffing and the capacity of the community sector to deliver services,
and a loss of gender equity from job cuts in the sector’s predominantly female workforce. For some
smaller organisations, a removal of this critical funding may mean they may no longer be able to operate.
It is estimated that a Commonwealth withdrawal of funding would result in 6,700 fewer Victorian
households being assisted each year to address and prevent homelessness and family violence related
housing crisis and would lead to an increase in rough sleeping among women and children escaping
family violence.
Organisations funded under the NHHA that are receiving SACS ERO are critically important to providing
services to some of the most vulnerable people in Victoria, who are experiencing heightened
disadvantage due to the impacts of COVID-19. It is essential that Victoria and the Commonwealth work
in tandem to build the capacity of this workforce, to ensure cohesive and ongoing support continues to be
provided to vulnerable people. A discontinuation of SACS ERO funding would reduce the capacity of this
sector to support people during the COVID-19 crisis and recovery.
The Commonwealth Government should continue providing SACS ERO funding beyond 2020–21 under
the NHHA and build this into base funding to ensure ongoing certainty to organisations.
Inquiry into Homelessness in Australia Page 19
OFFICIAL: SensitiveConclusion
The Victorian Government continues to support delivery of a range of innovative initiatives to prevent and
respond to homelessness across the State. These practical interventions are complemented by other
large-scale strategic investments that address the supply of social and affordable housing.
Across the COVID-19 pandemic the Victorian Government committed additional funding to ensure
vulnerable Victorians were kept safe. Other actions assisted people in rental accommodation to keep
their housing secure. The Victorian Government’s recent $5.3 billion social housing investment is
unprecedented and will significantly contribute to the State’s social and economic recovery as the
pandemic eases.
The Commonwealth Government’s role in addressing and preventing homelessness is critical given its
unique capacity to leverage system changes to help prevent housing stress and pathways into
homelessness in ways that other tiers of government cannot. Strong and enduring partnerships in which
agencies apply unique levers and deliver complementary interventions along the housing/homelessness
continuum are critical to effectively addressing and preventing homelessness in Australia. At a human
scale these partnerships help ensure that vulnerable Victorians are provided with timely, tailored and
flexible assistance that includes sustainable housing outcomes. Strong collaborations between all tiers of
Government are needed to achieve this goal and reduce the incidence of homelessness. To this end, the
Victorian Government looks forward to further deliberations with the Commonwealth and is otherwise
grateful for the opportunity to provide a submission to this important Inquiry.
Page 20 Inquiry into Homelessness in Australia
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