7 years ago
AUTOMATIC RENT DEDUCTION SCHEME BENEFITS PUBLIC HOUSING TENANTS AND ENCOURAGES INVESTMENT
Hon Alan Tudge MP
The Australian Government has begun building the IT infrastructure necessary to introduce an Automatic Rent Deduction Scheme (ARDS) to help social housing tenants maintain a secure tenancy.
The ARDS will drive greater efficiencies in Australia’s social housing system by generating a steady income stream that may be reinvested in social housing stock.
The state and territory social housing system is losing more than $30 million a year from unpaid rent and related administrative costs.
This not only results in people and families losing a roof over their head, but also discourages private investment in social housing.
Under the new scheme, social housing tenants would have their rent deducted and paid to their social housing provider before they receive their social security payments.
The scheme will build on the current voluntary Rent Deduction Scheme by ensuring social housing providers receive rent from tenants on time, in particular from those who consistently fail to pay.
All states, except Victoria, the ACT and Tasmania, have agreed to participate in the ARDS.
The states and territories tell us that in 2013-14 more than 8,900 households living in social housing had more than three weeks of rent arrears, with more than 2,300 people evicted due to rent arrears.
In 2013-14, some 80,000 households in the social housing system stopped their voluntary deductions at some stage during the year.
Minister for Human Services, Alan Tudge said the new ARDS is an important part of increasing investment in social housing.
“Secure housing for those on welfare is an important priority for the government, with the housing affordability debate raging, we must not forget those who are really in most need of our assistance and this scheme will help them with secure housing.
“This is one of a number of measures the Government is introducing to encourage private investment in social housing and consequently increase the availability of affordable housing,” Minister Tudge said.
Legislation to enable ARDS implementation will be introduced into Parliament in the Spring sittings, with an expected start date of the scheme of 1 March 2018.