Latest / 360 with Katie Woolf / NT Shelter Executive Officer Peter McMillan breaks down the housing commitments in the Federal budget
Transcript
- 0:00Speaker 1: It was a lot of detail throwing through yesterday around
- 0:02Speaker 1: the budget and use that a landmark agreement between every
- 0:06Speaker 1: level of government is going to aim to tackle Australia's
- 0:09Speaker 1: housing affordability crisis by building one million new homes over
- 0:13Speaker 1: five years now. It's called the National Housing Accord and
- 0:17Speaker 1: the agreements designed to incentivize the construction of cheaper housing
- 0:21Speaker 1: in popular regions. It's all supposed to start by twenty
- 0:24Speaker 1: twenty four. And much of Australia's housing affordability crisis has
- 0:28Speaker 1: been caused as well as a result of a lack
- 0:31Speaker 1: of supply as a great number of prospective buyers compete
- 0:35Speaker 1: for some of those properties. But we've also got a
- 0:38Speaker 1: situation here in the Northern Territory where there just isn't
- 0:41Speaker 1: enough affordable housing and enough housing across the board in
- 0:44Speaker 1: a lot of ways in public housing as well. Now
- 0:47Speaker 1: joining me in the studio to talk more about what
- 0:50Speaker 1: was announced when it comes to housing in the budget
- 0:53Speaker 1: in the Federal budget is Peter McMillan, the executive Officer
- 0:56Speaker 1: of NT Shelter. Good morning to you, Peter, are you
- 1:00Speaker 1: really well, Thanks so much for your time this morning. Peter,
- 1:03Speaker 1: talk us through what was announced in the budget when
- 1:07Speaker 1: it comes to this housing accord.
- 1:08Speaker 2: Firstly, yeah, well CADID there were a lot of positive
- 1:12Speaker 2: measures around housing, which is it's great to see. We
- 1:15Speaker 2: probably needed a budget like this with a focus on
- 1:17Speaker 2: housing around ten years ago, to be honest, but those
- 1:20Speaker 2: years have gone and we look forward from here in
- 1:23Speaker 2: seeing I guess more leadership at a commonwealth level around
- 1:27Speaker 2: a housing plan, a plan to address Australia's housing and
- 1:30Speaker 2: homelessess challenges, and as you point out, we certainly have
- 1:33Speaker 2: our share of those problems in the Northern territory. When
- 1:36Speaker 2: you're going into the budget, there are already commitments from
- 1:39Speaker 2: the government to build thirty thousand social and affordable homes
- 1:43Speaker 2: over five years. That was a ten billion dollar commitment
- 1:46Speaker 2: and some of those houses were to go to women
- 1:48Speaker 2: and children fleeing domestic family violence, around four thousand homes
- 1:51Speaker 2: out of that thirty which is very important of course,
- 1:54Speaker 2: and also to older women at risk of homelessness, and
- 1:58Speaker 2: also ten thousand affordable homes for frontline workers such as police,
- 2:02Speaker 2: nurses and cleaners. That's Australia wide. I just want to
- 2:05Speaker 2: stress that we need now to really roll up the sleeves,
- 2:09Speaker 2: be smart, about how we work together in the territory
- 2:12Speaker 2: to ensure that we get our fair share of loose
- 2:14Speaker 2: of spoils.
- 2:14Speaker 1: I think that that's such an incredibly important point to
- 2:17Speaker 1: make because you know, sometimes you see these figures and
- 2:19Speaker 1: you think, oh, that seems amazing, but then when you
- 2:21Speaker 1: talk about the Northern Territory having to fight for that share,
- 2:25Speaker 1: it's not just a given, is it.
- 2:26Speaker 2: It's not a given at all. I mean, we all know,
- 2:28Speaker 2: those of us who live and work up here, know
- 2:30Speaker 2: the level of housing need that we have. I think
- 2:33Speaker 2: more people across Australia are starting to get a better
- 2:35Speaker 2: understanding of that. And in the last few months actually,
- 2:39Speaker 2: there was a really important report handed down by the
- 2:41Speaker 2: Productivity Commission which basically said that the funding that's distributed
- 2:46Speaker 2: for housing homelessness needs to be based on need rather
- 2:49Speaker 2: than population share. And that's music to our he is really,
- 2:52Speaker 2: that's what we've been saying for a long time. We
- 2:54Speaker 2: know we've got twelve times a rate of homelessness. That's
- 2:56Speaker 2: not something that you get taught about when you're living
- 2:59Speaker 2: down South, when you're at school. I had no idea
- 3:00Speaker 2: until you come up here and see it firsthand. The
- 3:03Speaker 2: levels of overcrowding and so there's a lot of work
- 3:06Speaker 2: to be done on housing as well. I think what's
- 3:08Speaker 2: important is building a population to support a forty billion
- 3:12Speaker 2: dollar economy by twenty thirty. When the government wants to
- 3:15Speaker 2: have a thirty billion dollar economy, that's kind of have
- 3:18Speaker 2: a population of three hundred thousand. They reckon, that's twenty
- 3:21Speaker 2: percent more people than what we have now, and we
- 3:23Speaker 2: already struggle to house. Go anywhere near housing. Actually the
- 3:27Speaker 2: number of people we already have in the territory.
- 3:29Speaker 1: I think again, you know, you go, that's such an
- 3:31Speaker 1: important point because you think where are they going to live?
- 3:35Speaker 2: I think any conversation and I notice the Antimus are
- 3:38Speaker 2: starting a conversation on this. I believe a forum around
- 3:41Speaker 2: that twenty thirty forty billion dollar economy. I think it's
- 3:45Speaker 2: a very important community consultation and community conversation to have.
- 3:49Speaker 2: I think housing needs to be very much in the mix.
- 3:52Speaker 2: And now more Australians are talking about housing. They're realizing that,
- 3:55Speaker 2: you know, Australians want a budget that addresses their needs,
- 3:58Speaker 2: whether it be around cost of living or around having
- 4:00Speaker 2: a place to live that's affordable. And governments right across
- 4:04Speaker 2: Australia are now committed apparently to this accord, as you mentioned,
- 4:08Speaker 2: and I just want to that was new news out
- 4:10Speaker 2: of the budget. An aspirational target of one million new
- 4:14Speaker 2: homes over the five years from twenty twenty four through
- 4:17Speaker 2: to twenty twenty nine. That's a big number. It actually
- 4:20Speaker 2: is the number of how if it was all social
- 4:22Speaker 2: and affordable it would be fantastic, and if it was
- 4:25Speaker 2: to be pulled off, it'll be huge. But I mean
- 4:29Speaker 2: it's an aspirational target. I'm not sure how many people
- 4:31Speaker 2: believe we're going to get close to that in those years.
- 4:34Speaker 2: But what's important is we've got the Local Government Association
- 4:38Speaker 2: ALGA is party to this. We've apparently got all the
- 4:41Speaker 2: state and territory governments, and we've got institutional investors like
- 4:44Speaker 2: superannuation funds who have cash to spend, Katie on behalf
- 4:48Speaker 2: of their members. They want to get a return for
- 4:50Speaker 2: their superannuation members. What better placed than to put into
- 4:54Speaker 2: social affordable housing if they can get a modest but reasonable,
- 4:57Speaker 2: predictable return, and then.
- 4:58Speaker 1: How exactly would it work, Like we that housing accord,
- 5:01Speaker 1: who's going to build the homes? Well?
- 5:03Speaker 2: I think largely it's going to be a combination of
- 5:06Speaker 2: Australian property sector, building construction sector with the community housing sector.
- 5:10Speaker 2: I would suspect we've talked before a bit about community
- 5:13Speaker 2: housing and a role that they play, the important role
- 5:15Speaker 2: that they play in reinvesting profits back into building more housing.
- 5:20Speaker 2: If we're talking about a million properties, that's a huge
- 5:23Speaker 2: amount of scale and I've got no doubt that there'd
- 5:26Speaker 2: be a community housing providers right across Australia now really
- 5:30Speaker 2: I guess jumping at the bit to try and get
- 5:32Speaker 2: a share of that housing. It's going to be great
- 5:34Speaker 2: for their business, but also it will be great social
- 5:36Speaker 2: outcomes for Australians as well.
- 5:38Speaker 1: Peter, Look, I'm always a little bit skeptical. I think
- 5:41Speaker 1: it's part of my nature as a journalist and broadcaster.
- 5:43Speaker 1: But I know this. You know, in recent years, Jacindra Durn,
- 5:49Speaker 1: the Prime Minister in New Zealand, had made significant announcements
- 5:52Speaker 1: around building public housing and around you know, the numbers
- 5:56Speaker 1: of public housing homes that she would like to see
- 5:59Speaker 1: for those lower income or homeless. And really it's not
- 6:03Speaker 1: happened in New Zealand in recent years from what I
- 6:06Speaker 1: have read and what I can see. Do you think
- 6:09Speaker 1: we're really going to be able to do this.
- 6:12Speaker 2: I think it's good to be skeptical and always have
- 6:14Speaker 2: a degree of healthy skepticism. Kadie, There's no doubt about that.
- 6:17Speaker 2: I think it starts with a vision and leadership, and
- 6:20Speaker 2: that's what I think we saw in New Zealand in
- 6:22Speaker 2: terms of a statement that New Zealand's are a prosperous
- 6:26Speaker 2: country that can afford to do better in terms of housing.
- 6:30Speaker 2: It's people. They haven't executed that well, and I think
- 6:33Speaker 2: we can learn from what they've done wrong. But I
- 6:35Speaker 2: think with any commitments we make in Australia, it's about
- 6:39Speaker 2: how fair income we are and as a team effort,
- 6:42Speaker 2: it's going to require the states and territories to put
- 6:45Speaker 2: aside petty bickering that's been going on over the last
- 6:48Speaker 2: ten years round who's responsible for housing? Is it a
- 6:50Speaker 2: commonwealth responsibility, is it a take state and territory government responsible?
- 6:54Speaker 2: And what role does local government playing this as well?
- 6:56Speaker 2: So we're better than that. We can move beyond that now,
- 6:59Speaker 2: and I think we are starting to see the leadership
- 7:01Speaker 2: to say we need institutional investment, we need local government,
- 7:05Speaker 2: we need state and territory governments and the Commonwals government
- 7:07Speaker 2: to get this national problem resolved, and I think we
- 7:11Speaker 2: can make significant inroads, but by Gley, we're going to
- 7:14Speaker 2: need to really be smart up here and make sure
- 7:16Speaker 2: that we can get some of that house and it's
- 7:17Speaker 2: on off. Of coursewever it's more jurisdiction, but we've got
- 7:20Speaker 2: a lot of need.
- 7:20Speaker 1: Yeah, we certainly do. And much like I guess the
- 7:23Speaker 1: argument that we've been seeing nationally as well around domestic
- 7:26Speaker 1: violence is that you know, there's this real push from
- 7:29Speaker 1: the Northern Territory that it not be on a per
- 7:31Speaker 1: capita base, but more so on a needs base. Do
- 7:33Speaker 1: you think that it should be similar when it comes
- 7:35Speaker 1: to housing.
- 7:35Speaker 2: Absolutely, and we've been saying that for years now and
- 7:38Speaker 2: it's very heartening to see that comes through and the
- 7:41Speaker 2: reporter refer to before agreement to that from the Productivity Commission.
- 7:46Speaker 2: That's not going to automatically happen, though, Katie. We need
- 7:48Speaker 2: all the state and territory governments to say, look, we're
- 7:50Speaker 2: all Australians, we all deserve the same level of access
- 7:54Speaker 2: to housing and to homelessness services as well. And it
- 7:57Speaker 2: makes of course it makes sense to rectify and have
- 8:01Speaker 2: funding based on need, but it is going to take
- 8:04Speaker 2: the state and territory government treasurers and commonworth to agree
- 8:08Speaker 2: that we can redistribute funding based on need, just like
- 8:11Speaker 2: you know, doctor Shae Brown and others have been prosecuting
- 8:13Speaker 2: that case very effectively for domestic family violence services. We
- 8:17Speaker 2: couldn't agree more. It's exactly the same in homelessness.
- 8:19Speaker 1: Peter, just paint a picture for us right now about
- 8:22Speaker 1: how things are going in the Northern Territory when it
- 8:25Speaker 1: comes to the housing situation and homelessness. I think that
- 8:28Speaker 1: a lot of us can see the homelessness issues that
- 8:31Speaker 1: we have got in the Northern Territory, but have we
- 8:33Speaker 1: got a situation as well where people are still finding
- 8:35Speaker 1: it really tough to find homes if they move here
- 8:39Speaker 1: to work in different sectors. How tough is it at
- 8:41Speaker 1: the moment?
- 8:43Speaker 2: Look, it's extremely tough, and we put out a rental survey.
- 8:47Speaker 2: We've had eighty one responses recently to that. We've been
- 8:50Speaker 2: checking with our member organizations as to what they're seeing
- 8:53Speaker 2: on the ground. They're saying it's incredibly it's incredibly tough.
- 8:57Speaker 2: We've got a number of families that are sharing the
- 9:00Speaker 2: same house, some are staying some women we know of
- 9:04Speaker 2: that are staying in domestic family violent shelters, of course
- 9:07Speaker 2: they can't afford the place in the private rental market.
- 9:10Speaker 2: Some that are staying with their X because they can't
- 9:12Speaker 2: afford to leave their X they haven't got anywhere where
- 9:14Speaker 2: they can live. And people that are also planning or
- 9:16Speaker 2: leave in the territory and are leaving in old Territory
- 9:18Speaker 2: because they simply can't find somewhere to live. Now, there
- 9:22Speaker 2: are different ways that we can, I guess try and
- 9:25Speaker 2: make some in rays on that problem, Katie. One is
- 9:27Speaker 2: in terms of the prices that that time tenants are
- 9:30Speaker 2: expected to pay for rent. And I think we need
- 9:32Speaker 2: to have a conversation in laws and territory as to
- 9:35Speaker 2: when the rental market is at such low vacancy rates,
- 9:38Speaker 2: like maybe less than two percent, we need to look
- 9:40Speaker 2: at how we can apply a reasonable cap on rent increases.
- 9:44Speaker 2: You know, we've I've got a story here of family
- 9:46Speaker 2: that have been living in their place for four years
- 9:50Speaker 2: and authors all of a sudden overnight, they've had the
- 9:53Speaker 2: rent basically put up by one hundred and fifty dollars
- 9:56Speaker 2: and the landlord said it was a forty percent increase.
- 9:59Speaker 2: And the landlord said we'll have. If you don't like it,
- 10:00Speaker 2: move on, and the tendant say, well, you know, can't
- 10:03Speaker 2: risk saying not to that and ending up homeless because
- 10:05Speaker 2: there's nowhere else to be and and you know, all
- 10:08Speaker 2: the viewings are so competitive, so you know, we need,
- 10:11Speaker 2: I think to have a think about that. You know,
- 10:13Speaker 2: as a landlord myself, I think we all want to
- 10:16Speaker 2: try and get good rent and market rent. I get that,
- 10:19Speaker 2: but when you've got basically nothing in the market to rent,
- 10:21Speaker 2: I think it's reasonable to say, look, what are we
- 10:23Speaker 2: trying to achieve here, and is it fair to kick
- 10:26Speaker 2: out a family. Of course they can't afford one hundred
- 10:28Speaker 2: and forty hundred and fifty dollars a week increase when
- 10:30Speaker 2: they've been good tenants and making the territory their home.
- 10:32Speaker 2: Yet I think we can do. Which didn't happen in
- 10:34Speaker 2: the government government's budget which was disappointing was the Treasurer
- 10:38Speaker 2: himself noted that rents have gone through the roof and
- 10:42Speaker 2: there hasn't been any cost of living adjustment for renters.
- 10:45Speaker 2: And so while all the housing is incredibly important and welcome,
- 10:50Speaker 2: it's what's happening right now with further price cost of
- 10:54Speaker 2: living increases projected through gas electricity rises. There's a lot
- 10:57Speaker 2: of people very stressed about the cost of living.
- 11:00Speaker 1: Even when you look at the CPI from yesterday, the
- 11:02Speaker 1: ABS releasing those figures and seven percent for us here
- 11:05Speaker 1: in Darwin, that cost of living is you know, it's
- 11:08Speaker 1: astronomical for so many people right now.
- 11:10Speaker 2: It is. It's causing a lot of anxiety. And when
- 11:13Speaker 2: you hear that inflation hasn't even piqued it and interest
- 11:16Speaker 2: rates high for people with a mortgage or people trying
- 11:20Speaker 2: to repay alone, then yeah, it's a very very tough
- 11:24Speaker 2: time out there and I think the next budget next
- 11:26Speaker 2: year we'll need to continue that conversation around what we
- 11:29Speaker 2: can do to ease cost of living burdens in the
- 11:32Speaker 2: meantime until all this additional housing supply comes online.
- 11:36Speaker 1: Peter, I've only got about thirty seconds. But you know,
- 11:39Speaker 1: for the territory government, is it, you know, is the
- 11:41Speaker 1: message that they really need to be pushing as hard
- 11:44Speaker 1: as possible to the feeds at this point to get
- 11:47Speaker 1: our share.
- 11:48Speaker 2: Yeah. So the media release that was issued by the
- 11:51Speaker 2: Chief Minister and Minister Law was very positive about the budget.
- 11:56Speaker 2: They said they've been advocating for a lot of those things,
- 11:58Speaker 2: including housing. It was in the budget, but we can't
- 12:01Speaker 2: declare victory yet. We have to now basically be business ready.
- 12:05Speaker 2: We have to have our sorry, we have to be
- 12:07Speaker 2: shovel ready. We have to have these projects ready to go,
- 12:09Speaker 2: we have to have a business cases ready to go,
- 12:11Speaker 2: and we have to fight for the territory, no doubt
- 12:12Speaker 2: about that.
- 12:13Speaker 1: Well, Peter McMillan from Mt. Shelter, we always appreciate your time.
- 12:17Speaker 1: Thank you very much for coming on this morning and
- 12:19Speaker 1: having a chat with us.