Operating deficits in community housing

Summary

Community housing organisations in Australia recorded a surplus in the three years to 2005-06. To achieve low costs, many used voluntary labour, received discounted rates, and did not provide for depreciation.


Project Number: 30355
Research Theme: Public_and_Community_Housing, Economic
Project Leader: Berry, Mike
Funding Year: 2006
Research Centre: RMIT-NATSEM

Research and Policy Bulletin

Research & Policy Bulletin

Issue 110: Financial outcomes of community housing organisations

Community housing organisations in Australia recorded a surplus in the three yesra to 2005-06. To achieve low costs,many used voluntary labour, received discounted rates, and did not provide for depreciation.

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Description

Detailed data on costs and revenues were gathered from a sample of community housing organisations across Australia. The data was gathered through spreadsheet and questionnaire distributed to selected organisations. A random sampling method proved impossible. A purposive sampling method and 'best available data set' approach had to be used. The total number of organisations responding was 18: 6 from South Australia, 5 from Queensland, 4 from New South Wales, 2 from Victoria and 1 from Tasmania.

The results are directly comparable with an earlier study of operating surpluses and deficits in public housing 2005-06.

The key findings of the research are:

  • An average surplus (before depreciation, interest and grants) of $805 per dwelling in 2005-06, reflected higher revenues than expenses and the contribution of government rebates.
  • The average, per dwelling surplus of $805 in 2005-06 was an improvement on 2003-04, when the average, per dwelling surplus was $276 (in 2006 dollars).
  • Including net interest earnings, depreciation and grants into the equation , the average per dwelling surplus was $1,690 in 2005-06, due mainly to positive net interest earnings.
  • If all of the costs of community housing organisations were in line with those of public housing agencies, the majority would be experiencing substantial operating deficits.

More Information

Download now Final Report: No. 126: Operating deficits and community housing: policy options for reversing the trend
2294 KB PDF Document

Download now Research and Policy Bulletin: Issue 110: Financial outcomes of community housing organisations
690 KB PDF Document

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