Rental systems in Australia

Summary

International comparisons reveal Australia’s public housing system receives relatively low subsidies, undermining its financial viability. Although Australia (like Canada, New Zealand and the United States) operates dual (property and household based) social housing rent policies, housing affordability is achieved for 88 per cent of social housing tenants in Australia by setting the rent as a percentage of household income. Australia stands out in these comparisons as the only country operating a social housing rent policy that must provide for both housing affordability for households and financial viability for the organizations, whereas other similar social housing systems (Canada, New Zealand, United States) provide for the financial viability of social housing organisations by paying them additional subsidies to cover the cost of discounting rents. Netherlands, Sweden, and the United Kingdom operate single property based rent policies related to the ongoing costs of providing social housing and meet household affordability requirements by paying specific subsidies to the households.


Project Number: 50226
Research Theme: Private_rental, Public_and_Community_housing
Project Leader: Burke, Terry
Funding Year: 2003
Research Centre: Swinburne-Monash

Research and Policy Bulletin

Research & Policy Bulletin

Issue 075: Social housing rental policy in Australia and overseas

International housing comparisons reveal that Australia's public housing system received relatively low subsidies, undermining its financial viability.

Download nowDownload the PDF
120 KB PDF Document

Description

An international comparative review of social housing rental policies in eight countries was undertaken and supported with financial modelling of two rental policy options.

The key findings of the research are:

  • Australia, Canada, New Zealand and the United States operate similar dual (property and household based) social housing rent policies.
  • Housing affordability is achieved for 88% of tenants in Australia by setting the rent as a percentage of household income - rather than charging the full property related rent.
  • Australia stands out in these comparisons as the only country operating a social housing rent policy that must provide for both housing affordability for households and financial viability for the organisations.
  • Other similar social housing systems (Canada, New Zealand, United States) provide for the financial viability of social housing organisations by paying them additional subsidies to cover the cost of discounting rents.
  • Netherlands, Sweden, and the United Kingdom operate single property based rent policies related to the ongoing costs of providing social housing and meet household affordability requirements by paying specific subsidies to the households.

 

More Information

Download now Final Report: No. 095: Rental systems in Australia and overseas
907 KB PDF Document

Download now Research and Policy Bulletin: Issue 075: Social housing rental policy in Australia and overseas
120 KB PDF Document

Download now Positioning Paper: No. 074: Rental systems in Australia and overseas
2.7 MB PDF Document

Download now Audio Briefing: No. 01: Public housing rent policy in Australia and overseas
6.92 MB Audio Document

Icon: Printer  Printer friendly version        Icon: Envelopes  Email to a friend        Icon: Small book  Send feedback