Latest / 360 with Katie Woolf / NT Shelter Executive Officer Peter McMillian says the Federal scheme for first home buyers has been expanded with people only needing a deposit of 5 per cent

Transcript

NT Shelter Executive Officer Peter McMillian says the Federal scheme for first home buyers has been expanded with people only needing a deposit of 5 per cent · 360 with Katie Woolf

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  Speaker 1: You know that two budgets were handed down earlier this week,
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  Speaker 1: obviously the Northern Territory budget, which we've spoken a lot about,
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  Speaker 1: and also the federal budget and some questioning exactly what
• 0:10
  Speaker 1: is in it when we talk about affordable housing and
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  Speaker 1: that commitment some of those commitments that have been made.
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  Speaker 1: Now joining me in the studio to talk further about
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  Speaker 1: that is Peter McMillan, who is indeed the CEO of
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  Speaker 1: NT Shelter. Good morning to you, Peter, hy Katie are
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  Speaker 1: going yeah, really good. Great to have you in this studio. Peter,
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  Speaker 1: you and I have spoken on numerous occasions about well
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  Speaker 1: social housing, affordable housing, public housing and the shortfalls. What
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  Speaker 1: did you make of the budget earlier in the week.
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  Speaker 2: Well, certainly, Katie, this is the cost of living budget,
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  Speaker 2: and I think the government has made announcements over a
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  Speaker 2: whole range of measures, some of which are in the
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  Speaker 2: housing and homelessness space. The issue always is that, as
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  Speaker 2: I'm sure a few other commentators would say that there's
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  Speaker 2: never enough for any of them in particular, but we
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  Speaker 2: get a little bit of funding in a lot of
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  Speaker 2: areas and make a difference that's not negate it so
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  Speaker 2: there it is welcome, for example, to see an increase
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  Speaker 2: in the federal budget for Commonwealth rent assistance, and just
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  Speaker 2: so listeners are aware, those are payments that are from
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  Speaker 2: the Commonwealth government for people living in private rental, accommodation
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  Speaker 2: or community housing where they meet eligibility on incomes low
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  Speaker 2: to modern incomes. That's been increased by fifteen percent from
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  Speaker 2: the twentieth of September this year. So that's going to
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  Speaker 2: make a difference because it's the first time that the
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  Speaker 2: rate of commerce red assistance has increased more than the
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  Speaker 2: rate of inflation for thirty years. So people who are
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  Speaker 2: receiving the maximum amount of Commorce red assistance, which is
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  Speaker 2: around eighty percent of recipients, they'll receive an additional sixteen
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  Speaker 2: dollars to thirty two dollars per fortnite, depending on their
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  Speaker 2: household composition and the amount of rent their pain and peter.
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  Speaker 1: Would most people if they're eligible for that, would they
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  Speaker 1: already be aware that they're eligible for it or are
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  Speaker 1: they able to sort of find out if.
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  Speaker 2: They are well, Those who are receiving the top rate
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  Speaker 2: will be eligible for it. I'm not sure how well
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  Speaker 2: it's been communicated yet, other than on budget night, but
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  Speaker 2: that will come through from the thirtieth of what did
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  Speaker 2: I say before the twenty.
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  Speaker 1: September year, that'll come through, So any other wins for
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  Speaker 1: this sector from what you can see.
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  Speaker 2: Well, there are some announcements in the federal budget that
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  Speaker 2: we were aware of and which are very encouraging. So
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  Speaker 2: if we look at the Northern Territory circumstances, clearly closing
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  Speaker 2: the gap on housing in remote communities and homelands is
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  Speaker 2: very important, and so it's good to see that one
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  Speaker 2: hundred and eleven million dollars for a new one year
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  Speaker 2: remote housing agreement with the territory government. We're also seeing
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  Speaker 2: one hundred million dollars over two years for urgent work
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  Speaker 2: on housing and infrastructure in homelands and that's very welcome
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  Speaker 2: used in the first time since two thousand and nine,
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  Speaker 2: I think that actually longer than that we've had investment
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  Speaker 2: in the homelands. I think it's more like twenty years,
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  Speaker 2: so that's important. And also there's been some money to
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  Speaker 2: get the Aboriginal housing sorry Aboriginal hostels limited properties up
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  Speaker 2: to better scratch to take urgent repairs and maintenance, so
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  Speaker 2: that's important. And the other thing I think that's also
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  Speaker 2: interesting for those that are looking to buy a home.
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  Speaker 2: There's been an expansion of the home guarantee scheme, so
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  Speaker 2: at the moment, that's where new homeowners can borrow. Sorry,
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  Speaker 2: the deposit only needs to be as little as five percent,
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  Speaker 2: and the federal government will will guarantee the balance of
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  Speaker 2: that twenty percent deposit that would otherwise be paid in
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  Speaker 2: len there's home mortgage insurance, so that helps new homeowners
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  Speaker 2: get into the market earlier than what they would in
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  Speaker 2: terms of only having to save a depositors of as
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  Speaker 2: little as five percent. So of course everybody should get
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  Speaker 2: independent financial advice, especially in a rising interest rate environment,
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  Speaker 2: and the capacity to repay.
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  Speaker 1: That lite very good advice, I reckon.
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  Speaker 2: But now any two people eligible people will be able
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  Speaker 2: to be join applicants. Now some opportunities there. Before it
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  Speaker 2: was just spouses and de facto partners. So now we
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  Speaker 2: can get people coming together and being joint applicants.
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  Speaker 1: Which is like a moment like a mum and daughter
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  Speaker 1: or something like that.
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  Speaker 2: Potentially two friends. Yes, right, So I think it will
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  Speaker 2: be really important to see the eligibility guidelines when that
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  Speaker 2: comes out, things like allowing non first home buyers who
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  Speaker 2: haven't owned a property in Australia for at least ten
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  Speaker 2: years to access that guarantee, single legal guardians of children
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  Speaker 2: and also Australian permanent residents. So there's been an expansion
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  Speaker 2: and that is really I guess providing a little bit
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  Speaker 2: more of an opportunity for those who do aspire to
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  Speaker 2: home ownership just to be able to save up the
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  Speaker 2: deposit quicker and get into the market.
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  Speaker 1: Now, Peter. Obviously, the federal government also said that they
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  Speaker 1: are they're committing tofting to lift the National Housing Finance
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  Speaker 1: and Investment Corporations liability cap to two billion from two
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  Speaker 1: billion to seven point five in order to support the
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  Speaker 1: building of affordable and social housing. Will that make an impact.
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  Speaker 2: It will make an impact in terms of community housing
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  Speaker 2: organizations in particular being able to access low, low cost finance.
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  Speaker 2: So that's basically a guarantee that the Australian government gives
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  Speaker 2: to ensure that NIFIC, which is a National Housing Finance
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  Speaker 2: Investment Corporation, to be able to issue those loans in
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  Speaker 2: a way that those loans are guaranteed. And there have
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  Speaker 2: been figures of around seven thousand new social affordable housing
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  Speaker 2: dwellings across Australia that will come as a result of
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  Speaker 2: that sound.
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  Speaker 1: Like it sounds like there's lots of announcements. It always
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  Speaker 1: sounds like it's a good thing when a budget gets
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  Speaker 1: handed down and you can sort of see that there's
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  Speaker 1: quite a bit in there for housing and affordable housing
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  Speaker 1: and social housing. Does it hit the mark though? Do
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  Speaker 1: you think it goes far enough?
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  Speaker 2: I don't think. I don't think it does. I'd say
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  Speaker 2: it's a start, and I haven't really mentioned yet. Build
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  Speaker 2: to rend as well, which is another area, a new
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  Speaker 2: I guess segment in the Australian property market where the
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  Speaker 2: government is clearly wanting to make that more I guess
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  Speaker 2: a more attractive investment class for developers, such as overseas
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  Speaker 2: and here to all lesser extent in other areas of
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  Speaker 2: Australia where large property developers are building properties for rent,
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  Speaker 2: they own the properties, they don't sell the ownership to
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  Speaker 2: tenants or owners for a longer period of time, so
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  Speaker 2: tenants get longer security of tenure in those properties, they
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  Speaker 2: get more security over not getting kicked out at the
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  Speaker 2: end of their lease. You get good amenities and facilities
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  Speaker 2: in those properties as well. That model's very popular overseas
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  Speaker 2: and it provides someone going certainty for renters, those people
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  Speaker 2: who don't want to buy properties. So there's been some
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  Speaker 2: extensions in rates of depreciation and withholding tax to try
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  Speaker 2: and kick that along. Without getting too technical, they're trying
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  Speaker 2: to support that which is an exciting new I guess
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  Speaker 2: type of housing product, especially in I think the territory
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  Speaker 2: where we have fifty percent of us at renter. So
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  Speaker 2: stay tuned for that one. What I think is most
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  Speaker 2: important is probably what's not in the budget, and that
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  Speaker 2: is that in Canberra at the moment, some of your
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  Speaker 2: listeners may be aware there's been negotiations in the Senate
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  Speaker 2: with the Greens and other cross benches to try and
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  Speaker 2: get this Housing Australia Future Fund or the half in place,
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  Speaker 2: and Jackie Lambe's party has negotiated for her state in
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  Speaker 2: Tasmania and now nationally that if that gets up, each
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  Speaker 2: state in territory will get one thy two hundred social
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  Speaker 2: and affordable housing properties.
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  Speaker 1: Wow.
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  Speaker 2: Now if we were to get that here in the
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  Speaker 2: Northern territory, can you imagine the impact that will make
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  Speaker 2: in each.
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  Speaker 1: Of the social and affordable housing Well, I don't think
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  Speaker 1: it can be underestimated. You know the impact that not
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  Speaker 1: having that social and affordable housing and the impact that
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  Speaker 1: not having somewhere affordable to live can have. You know,
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  Speaker 1: it does mean that you've got people moving away, it
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  Speaker 1: means you've got that overcrowding. It has a huge impact
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  Speaker 1: in so many different ways.
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  Speaker 2: Absolutely, so the things we need to see more houses
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  Speaker 2: being built. So under this half legislation that will see
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  Speaker 2: thirty to forty thousand houses around Australia getting built is
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  Speaker 2: nowhere near enough and that's why we would like to
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  Speaker 2: see the government raise its ambition on that. But it's
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  Speaker 2: a start and I think we need to get moving
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  Speaker 2: with that. As I said, twelve hundred houses territory will
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  Speaker 2: make a huge difference. The other thing we need to
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  Speaker 2: look at is renters, and at the moment what's happening
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  Speaker 2: also in Canberra is under National Cabinet all the housing,
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  Speaker 2: state and territory housing ministers are having to go back
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  Speaker 2: and look at what they're doing for renners. Protections around
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  Speaker 2: things like how often can you rent increase and by
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  Speaker 2: how much and also I guess provisions around getting evicted
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  Speaker 2: at the end of your lease and making sure that's
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  Speaker 2: fair and consistent nationally now Cadie in the Northern Territory,
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  Speaker 2: we've got absolutely nothing to show for that. Over the
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  Speaker 2: last five years we really are really dragging the chain.
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  Speaker 2: We've done absolutely nothing here at all on progressive legislation
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  Speaker 2: for landlords and tenants alike. We've got an Act which
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  Speaker 2: is hopelessly out of date and the stage we've seen
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  Speaker 2: nothing at all come out of reform. So if we're
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  Speaker 2: serious about providing security of tenure for residents, whether they
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  Speaker 2: want to live here in an owner property or rent
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  Speaker 2: a place, they need to have a little bit more
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  Speaker 2: safeguard in place and the cost of living all of
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  Speaker 2: these announcements that have been made in will make certainly
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  Speaker 2: make a difference to families. The question is we'll do enough.
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  Speaker 2: Only time will tell.
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  Speaker 1: Yeah, you spot on, Peter McMillan. I always enjoy our chats,
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  Speaker 1: always appreciate your honesty and your knowledge in this space.
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  Speaker 1: So thank you so much for joining us on the
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  Speaker 1: show today. Thank you