INCREASING the supply of affordable rental properties for those ineligible for social housing is a key finding of a new report into the private rental sector, produced by the Bankwest Curtin Economics Centre.
 
According to the report, which mirrors Community Housing Limited’s (CHL) experience as Australia’s leading not-for-profit housing provider, there is a significant lack of stock for those renters whose personal circumstances mean they are ineligible for government-supported rental housing.
 
The Bankwest Curtin Economics Centre Report into the Private Rental Sector (PRS) was based on an analysis of the 2016 census data and a separate survey of 3182 private renters.
 
Findings from the research found that six in 10 renters do so because they have no other option.
 
But it also found that almost half of those are paying over 30 percent of their income on rent, a proportion that rises to an untenable 64 percent for older respondents (over 55 years).
 
“An effective and affordable private rental sector would allow households to transition out of social housing and potentially save for owner occupation,” Steve Bevington managing director of Community Housing Limited said.
 
“Our experience supports the findings from the Curtin Report, which is that there’s a significant shortage of affordable housing for private rental, as there is for social housing.
 
“It’s imperative that we increase the stock of available affordable private housing, to both provide greater opportunity for those looking to transition out of social housing and to secure the tenure for those renting.
 
“According to the report which highlights the issue, one third of renters are forced to move due to the property being sold, while households that are most likely to suffer from discrimination are single parents with children.”
 
According to the Bankwest Curtin Economics Centre report, a surprising one in four Australian households are rental properties, almost 26 percent of those in the private market and almost 30 percent in social housing.
 
“Even so, at CHL we know that the availability of stock is no-where near enough to satisfy demand and that successive federal and state governments are not highly motivated to realise more affordable housing,” Mr Bevington said.
 
“It’s a matter of economics, in this case the government’s.
 
“Releasing or investing in more affordable housing stock will flatten the housing market in terms of real estate values, so the desire for the market to function and the buying and selling of housing, reduces.
 
“This in turn means that the states will lose stamp duty revenue, while the Federal Government will also miss out on Capital Gains Tax.

“I believe an option for consideration is the removal stamp duty and replacing it with a land tax, meaning you don’t have windfall gains to transfer taxes and there isn’t incentivisation for unaffordability.”
 
During Homelessness Week earlier this year, CHL took the opportunity to again reinforce the need for a co-ordinated Australia-wide strategy to deliver 500,000 much-needed social and affordable houses.
 
It suggests a national approach that utilises the capabilities of all the stakeholders including government, not for profit and private sector to deliver a solution.
 
“Expanding the housing stock is part of the solution and what’s needed is a co-ordinated national strategy with a corresponding increase in funding and incentives to enable all stakeholders, government and private to create partnerships to invest in more housing and services,” Mr Bevington said.
 
“Buying existing properties to fill the gap is a shorter term solution, however it’s an expensive pathway, and is in fact in a major contributor to many people struggling with their personal circumstance and in some cases being homeless and needs urgent attention by all levels of the government.”  
 
Access and view the Bankwest Curtin Economics Centre Report into the Private Rental Sector (PRS) here: http://bcec.edu.au/publications/the-private-rental-sector-in-australia/
  
About Steve Bevington and CHL
 
Steve Bevington is the founder and managing director of Community Housing Limited (CHL),
 
After experiencing homelessness when he was younger, Mr Bevington was determined to make a difference in the world, and that he has. He has led CHL from a one worker organisation in his home in Melbourne to business operations into three of the four regions of the world which harbour extreme poverty.

By November 2018, CHL will have 11,000 properties under management in Australia making it the largest community housing provider in the country with operations across the six states and nearly 300 staff delivering services to support those most disadvantaged. 
 
Mr Bevington is one of Australia’s leading experts on housing affordability and is on the board of Community Housing Industry Association (CHIA), Australia’s peak body for community housing and is a key contributor to policy advocacy influencing government housing policies and initiatives.

CHL has a particularly strong commitment to housing those on low incomes, essential service workers and high and complex needs who have been disadvantaged in the market place.

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THE Australian Retailers Association (ARA) believes the three key economic Bills which passed the Senate yesterday will bring significant changes to the retail industry.

From late-2019, gift cards issued across Australia will be regulated under a new law which will enforce a minimum three-year expiry period.

Russell Zimmerman, executive director of the ARA, said while many retailers and the ARA were against the expiry extension, the new Federal legislation will remove inconsistencies which were caused when NSW acted alone on similar legislation at the start of this year.

“Although the ARA were not impressed with the three-year extension, we called for an 18-month transitional period for retailers to get rid of old stock,” Mr Zimmerman said.

“Instead we were left with a 12-month transitional period, placing more strain on retailers already operating in an unstable environment. We will continue to lobby for exemptions to the new law to ensure the impacts on retailers are limited.”

Australian retailers will also be contending with new requirements under the Australian Consumer Law (ACL) with the Australian Consumer Law Review also passing the Senate yesterday. Mr Zimmerman said this new legislation will bring key changes to pricing rules regarding fees and charges, product safety provisions, and the extension of consumer guarantees.

“The positive developments coming out of yesterday’s onslaught of economic developments include the passage of the Lower Taxes for Small and Medium Businesses Bill 2018, which will mean small retailers will receive a lower tax rate five years earlier than expected,” Mr Zimmerman said.

“Previously, all businesses with annual turnover of $50 million or less could expect to see their corporate tax rate slowly decrease over 10 years.”

This new legislation means that the transition has been fast-tracked, and the small business corporate tax rate will drop to 26 percent in the 2020/2021 financial year, and then to 25 percent in the 2021/2022 financial year.

Mr Zimmerman said these moves follow on from the ARA’s continued efforts to lobby the Government to ease the pressure on retailers, to lower their costs, increase their flexibility, and provide investment certainty so that small and medium retailers can grow their businesses, hire more staff, and compete more effectively.

While this news is a boon for small and family retailers, the reality is that Australia now has a two-tiered corporate tax rate, which increases the burden of Australia’s already-complex tax system.

“At 30 percent for all businesses operating over the $50 million turnover threshold, Australia’s top corporate tax rate remains one of the highest in the developed world,” Mr Zimmerman said.

The ARA will continue to lobby the Government to apply the lower tax rate to businesses of all sizes and will update members on any further developments through their fortnightly newsletter and member alerts. 

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is Australia’s largest retail association, representing the country’s $310 billion sector, which employs more than 1.2 million people. As Australia’s leading retail peak industry body, the ARA is a strong pro-active advocate for Australian retail and works to ensure retail success by informing, protecting, advocating, educating and saving money for its 7,500 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041. To subscribe to the ARA’s fortnightly newsletter, click here.

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THE Trade and Investment Growth Committee today commenced an inquiry into the role that the Australian Trade and Investment Commission (Austrade) has in attracting investment to Australian businesses and how they can help those businesses to attract investment themselves.

The terms of reference for the inquiry have particular regard to a number of significant industries or sectors: Resources and Energy, Agribusiness and Food, Major Infrastructure, Tourism Infrastructure, and Advanced Manufacturing, Services and Technology.

Committee chair Ken O’Dowd MP said, “The committee has considered the role of Austrade in previous inquiries in this Parliament, but we wanted to take a more focused look to fully understand the important role that the agency can play in promoting and encouraging investment.

“As Australia’s role in the international economy evolves, the role that Austrade has in ensuring that our businesses are competitive is crucial.”

The committee welcomes submissions from any individuals, organisations and businesses interested in the terms of reference of the inquiry. Submissions can be made through the committee’s website before 16 November 2018. The Committee anticipates holding public hearings on the inquiry and advice will be provided on the website when these are scheduled.

Interested members of the public may wish to track the committee via the www.aph.gov.au/jsctig.

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The CFMMEU has been fined "yet again for bullying small business people and workers" according to Master Builders Australia.. 

The Federal Court found that the union and six of its officials had threatened and coerced contractors into signing union wage agreements and broken safety and right of entry laws in 2014 and 2015, resulting in fines totalling $313,000 and orders to publish paid advertisements about the breaches. 

“Bullying by the CFMMEU is an everyday reality for small business people and workers on building sites around the country," Master Builders Australia CEO Denita Wawn said.

"These are people who are just trying to earn a living and build successful businesses that employ people and the CFMMEU wants to deny them that right unless they bow the union’s threats and intimidation."

Six union officials including three senior officers – former NSW state secretary Brian Parker, assistant state secretary Robert Kera, and organiser Luke Collier – were found by the court to have taken unlawful action against a group of concreting companies in order to coerce them into signing Union Enterprise Bargaining Agreements (EBAs). 

In his judgment, Justice Flick said of the CFMMEU, "The conduct… evidences a continuing commitment on the part of the CFMEU to pursue its industrial objectives by unlawful means and a continuing commitment to pay such penalties as are imposed as but the 'cost of doing business'." 

Ms Wawn said, "Without the Australian Building and Construction Commission (ABCC) holding the CFMMEU to account and bringing their appalling behaviour to the attention of the courts and the community, then the union would just get away with bullying small business people.

“This decision by the Federal Court is more evidence that the ABCC is essential to ensuring the rule of law is observed on construction sites just like it is on normal workplaces,” she said. 

“In under two years, the CFMMEU has incurred over $8 million in fines. This is money that comes out of their members pockets, every time they are caught they never show any remorse. This is why our industry needs the ABCC."

www.masterbuilders.com.au

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