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Legislative Assembly for the ACT: 1993 Week 08 Hansard (Tuesday, 17 August 1993) . . Page.. 2354 ..


MINISTER FOR HOUSING AND COMMUNITY SERVICES

LEGISLATIVE ASSEMBLY QUESTION

QUESTION ON NOTICE NO. 741

Housing Trust - Rental Rebates and Rent Relief

MR CORNWELL: Asked the Minister for Housing and Community Services - Has any comparison been made as to the cost and benefits of the rental rebate in ACT Housing Trust properties as opposed to rent relief in private accommodation and; if so, what was the result; if not, why not.

MR CONNOLLY: The answer to the Members question is as follows:

The comparative cost of rental rebate in ACT Housing Trust properties as compared to the subsidy paid to those on rent relief in private accommodation at June 1993 was:

Average Rental Rebate: $72.00 pm

Average Rent Relief: $49.90 pm

ACT Housing Trust tenants are rebated to 20% of their income as rent up to half of ACT Average Weekly Earnings (AWE) and 23% for each dollar over half of ACT AWE, while rent relief recipients receive a subsidy of up to $50 plus $10 per dependent per week and are required to pay at least 30% of their income as rent.

A study into market impacts and cost effectiveness of housing allowances commissioned by the Commonwealths National Housing Policy Review in 1989 and undertaken by Econsult (Australia) Pty Ltd concluded that in terms of cost effectiveness in providing poverty relief, public housing emerges as the lowest cost long term strategy. The study found that the greater the commitment of resources to public housing the more rapidly will Governments bring the cost of addressing housing poverty under control.

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