Victoria’s spending on social housing has plummeted in recent years, with New South Wales, Western Australia and Queensland now spending more each year, the Productivity Commission has found.
Figures released by the Productivity Commission show that NSW spent $1.9bn on social housing in 2013-14, WA spent $714m and Queensland spent $488m.
Victoria spent $431m in 2013-14, down from $939.7m in 2010-11. The numbers come with caveats: federal government contributions peaked in 2010-11 via the economic stimulus package and NSW includes some things not accounted for by other states.
But the Victorian Labor government said the figures were evidence the previous Liberal administration “tore the heart” out of social housing.
“The previous Liberal government didn’t care about housing for struggling families,” said Martin Foley, Victoria’s housing minister. “They abandoned the people who are most in need of help.”
The Productivity Commission report shows that 92 Victorians a day were turned away by homelessness agencies over the past financial year. The sector claimed that a lack of resources meant they could not tend to the estimated 22,000 people without a place to stay.
The figures show, however, that total spending on homelessness services increased in all states and territories over the past financial year.
NSW spent $138.5m in 2013-14, Victoria spent $190.8m and Queensland spent $106m. WA spent $68.7m, followed by smaller amounts in South Australia, Tasmania, the ACT and Northern Territory.
A national total of $619.1m is up on the previous year’s figure of $583.1m, but homeless advocates have warned that this spending is at risk if the federal government walks away from a national partnership with the states to fund homelessness services.
“We fear the commitment is wavering on the federal government’s part,” said Glenda Stevens, of Homelessness Australia, the peak body that saw its funding cut by the federal government shortly before Christmas. The federal government signed a 12-month extension to the deal last year, which runs out in June. There has been no commitment as yet to extend the $115m in federal funding.
“It’s extremely important the national partnership is continued so we can continue to serve the community without interruption,” Stevens said.
Stevens added that if the federal funding is cut, 80,000 people will be adversely affected nationally and 3,500 jobs in areas such as counselling, support workers and catering will be lost.
Scott Morrison, the federal social services minister, said: “The states and territories are responsible for determining priorities and retain the flexibility to decide which services should be funded.
“Under the 2014-15 national partnership agreement on homelessness, states and territories have reported that funding is being used to support around 140 initiatives and services which provide assistance for women and children experiencing domestic and family violence.”
Morrison did not comment on whether the arrangement would be extended further.
