Committee Secretary House of Representatives Standing Committee on Social Policy and Legal Affairs PO Box 6021

CENTRE FOR SOCIAL IMPACT SUBMISSION – INQUIRY

The Centre for Social Impact (CSI) welcomes the opportunity to provide a submission into the House of Representatives Standing Committee on Social Policy and Legal Affairs’ inquiry into homelessness in Australia (the inquiry).

Who we are

CSI is an independent, not-for-profit research and education centre, and is a collaboration of three of Australia’s leading universities: UNSW Australia, The University of Western Australia, and Swinburne University of Technology. CSI acts as a catalyst for social change by creating knowledge through research and translating and transferring that knowledge through teaching and public engagement activities. CSI’s ultimate aim is to affect policy and practice in order to improve outcomes for those in need.

CSI’s research examines the effects of innovation, ingenuity and collaboration within our social system. We focus particularly on the intersections within systems between government, business, and the social sector. We tackle the most complex social problems and examine how people, organisations, groups and sectors work and might work differently, and understand how, why and under what circumstances social change is achieved

CSI’s submission to the inquiry is informed by our wide research in the areas of housing and homelessness. CSI’s recent research in these areas include:

• Homelessness and COVID-19, Centre for Social Impact, UNSW Sydney • Amplify Insights, Housing Affordability and Homelessness Centre for Social Impact, UNSW Sydney • Inquiry into social impact investment for housing and homelessness outcomes, AHURI Final Report No. 299 • The construction of social housing pathways across Australia, AHURI Final Report No. 316, • The State of Homelessness in Australia’s Cities: A Health and Social Cost Too High, Centre for Social Impact The University of Western Australia

In addition to our research work, CSI’s is a founding partner (with , Red Cross and PwC Australia) in the Constellation Project a cross-sector collaboration with a vision to end homeless within a generation. CSI is also on the operations group of the Everybody’s Home campaign and works closely with the Western Australian Alliance to End Homelessness Our involvement in these projects also informs the content of this submission.

Submission summary The landscape for housing and homelessness policy in Australia has been dramatically altered by the on-set of COVID-19. The pandemic has led to the rapid mobilisation of existing resources across government, private, and not-for-profit sectors to provide temporary accommodation to rough sleepers and the implementation of time limited measures (such as the increase of the JobSeeker payment) to prevent increases in the rates of people experiencing homelessness. CSI believes that the range of measures implemented in response to COVID-19 must continue and be expanded upon if Australia is to meet the challenges of ending homelessness post COVID-19. This includes ensuring appropriate resourcing is provided to the specialist homelessness sector to respond to expected increases in the number of people seeking support and substantial investment in social and affordable housing. Homelessness and COVID-19

The onset of COVID-19 necessitated a major shift in government responses to homelessness. In recognition that those experiencing homelessness or are at risk of becoming homeless would be disproportionately affected by the crisis, state and territory governments adopted a variety of policy and practice responses in order to both house people sleeping rough and to prevent new people from becoming homeless. This submission will outline some of the key measures implemented during the COVID-19 and address how these should be continued and expanded upon to prevent increased rates of homelessness in the face of rising unemployment and potential recession.

Temporary accommodation and rough sleepers

A significant response by state and territory governments during COVID-19 was the provision of temporary accommodation in hotels and motels for those sleeping rough and those at immediate risk of rough sleeping. CSI UWA is working closely with agencies across Australia and the Australian Alliance to End Homelessness to gather data on the number of people assisted across Australia. At present, among agencies we have worked with we estimate that over 2,200 people experiencing homelessness, primarily those sleeping rough, have been accommodated. But the total number of rough sleepers assisted across Australia could be close to 5,000 and the total number of people experiencing homelessness who have been provided with temporary accommodation close to 10,000. If a significant proportion of rough sleepers provided with temporary accommodation are permanently housed, this would represent the largest transition from the streets to housing we have ever seen in Australia.

CSI believes it is essential state and territory governments (with the support of the Australian Government) partner with service agencies to implement coordinated plans to permanently house those in temporary accommodation. In order to house and provide wraparound support, it is acknowledged that additional investment in social housing in combination with innovative market solutions will be required (discussed in more detail below). As such CSI welcomes the recent commitment of the NSW Government of $36 million on getting rough sleepers into permanent homes which is to be facilitated by the purchase of private rental accommodation through community housing providers. We note that NSW is the only state and territory government to have announced a strategy to transition those currently in hotels and motels into permanent accommodation. .

CSI also believes the COVID-19 housing of rough sleepers provides an opportunity to facilitate the transition for service responses to move away from ‘crisis’ towards rapid rehousing and wrap-around support. The rapid housing and provision of support to rough sleepers in response to COVID-19 was a significant shift in previous responses adopted in response to homelessness. Historically, the homelessness service system in Australia has been

2 characterised by a focus on responding to crises and emergencies, including through short‐ stay refuges and shelters. Without a focus on prevention and long‐term housing transitions, the crisis accommodation model has created a revolving door of people never quite exiting homelessness, or exiting homelessness followed by re‐entry into homelessness. This is evidence in the fact that 57% of all clients of specialist homelessness services in 2018-19 had previously been clients at some point since 2011-12.1 A system heavily weighted toward traditional ‘crisis’ service delivery approaches has been critiqued by many as not only being ineffective, but also as not being cost effective2.

By contrast, the Housing First model focuses first on attainment of permanent housing, then the provision of wrap around support for surrounding issues to prevent re‐entry into homelessness. While Housing First approach is now generally accepted as the optimal strategy to end homelessness, state/territory governments and the Australian Government have yet to fully back the Housing First approach with respect to funding and action plans towards ending homelessness. This backing would need to specifically address the current insufficient supply of longer‐term affordable housing (see below).

Recommendation: The Australian government coordinate state and territory responses to ensure those provided temporary accommodation during the COVID-19 pandemic are transitioned into permanent housing and are provided appropriate supports to enable them to sustain their tenancy.

Recommendation: The Australian government develop a national plan to end homelessness which incorporates shifting the funding towards responses with an emphasis on Housing First responses

Unemployment support

The economic contraction following COVID-19 is leading to a very significant reduction in employment and low hours of work for those in employment. This was confirmed in April employment figures indicate that the unemployment rate in Australia has risen to 6.2% and that 2.7 million people became unemployed or had their hours reduced between March and April. A key component of the Australian Government’s response to limit the economic impact upon vulnerable groups was the provision of the Coronavirus Supplement (the supplement) to the JobSeeker, Youth Allowance and other eligible payments. Initial evidence suggests that the supplement in combination with the JobKeeper wage subsidy has been successful in preventing considerable rises in the numbers of people experiencing homelessness. However, the time limited nature of this supplement means that Australia is at a serious risk of a wave of new entrants into homelessness.

CSI supports the retention of the supplement in the short term to ensure vulnerable groups are not placed at risk of poverty and homelessness. CSI notes the findings of the recent Senate Inquiry into the Adequacy of Newstart and related payments that the rates of JobSeeker prior to COVID-19 of ‘do not support an acceptable minimum standard of living’. CSI supports the recommendation of the Senate Inquiry into the Adequacy of Newstart and

1 Australian Institute of Health and Welfare (AIHW) (2019) Specialist homelessness services annual report 2018–19, cat no. HOU299, Australian Institute of Health and Welfare, Canberra, https://www.aihw.gov.au/reports/homelessness-services/specialist-homelessness-services-2017- 18/contents/unmet-demand-for-specialist-homelessness-services. 2 Culhane, D. P., & Metraux, S. (2008). Rearranging the Deck Chairs or Reallocating the Lifeboats? Homelessness Assistance and Its Alternatives. 111-121.

3 related payments that the range of income support payments covered by the Coronavirus Supplement be permanently increased following its removal.3

CSI notes that those on temporary visas are currently restricted from accessing Jobseeker and JobKeeper payments leading to concerns that specialist homelessness services will see an increase in numbers from this cohorts.

Recommendation: That the Australian Government continue the Coronavirus Supplement for those on JobSeeker, Youth Allowance and other eligible payments to prevent further rises in homelessness.

Recommendation: That the Australian Government implement a permanent increase in JobSeeker and other social security payments following the phasing out of the Coronavirus Supplement.

Recommendation: That the Australian Government extend access to JobSeeker and JobKeeper to those on temporary visas.

Tenancy Support

Another important measure to prevent significant increases to homelessness during the pandemic was the implementation by states and territories of moratoriums on evictions. Except for the Northern Territory, states/territories implemented policies to prevent evictions from private rental in instances where the tenant had their income impacted by the COVID-19 pandemic. While there were limitations and gaps in the protections provided by the moratoriums4, they provided important measures to prevent vulnerable tenants being subject to evictions. Given the measures introduced are time limited (in most cases for six months) there is concern that the removal of the moratorium will result in increased evictions potentially into homelessness.

In order to prevent large scale evictions from private rental, CSI believes it is essential that Australia’s tenancy laws are reformed to provide greater security of tenure for renters. CSI recommends that removal of ‘no grounds’ clauses which enable tenants to be eviction without grounds on very limited notice. Currently Australian states and territories allow landlords to terminate tenancies without grounds at the end of a fixed term (in Victoria only for the first fixed year), and all but Tasmania (and, under amendments shortly to commence in Victoria) allow ‘without grounds’ terminations of periodic tenancies. Security of tenure for renters would be further enhanced by limiting rent increases to once every 12 months

Recommendation: That the Australian Government oversee the implementation of nationally consistent protection for renters through legislative protections against evictions and unfair rent rises.

Supporting the Specialist Homelessness Service sector

3 Commonwealth of Australia, Adequacy of Newstart and related payments and alternative mechanisms to determine the level of income support payments in Australia (Canberra: Parliament of Australia, April 2020), https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Community_Affairs/Newstartrelatedpa yments/Report 4 For example, limited protection is afforded by the moratoriums for no ground’s terminations.

4

As detailed above, the economic contraction following COVID-19 is leading concerns of an increase in the numbers of people experiencing homelessness. Prior to COVID-19, the specialist homelessness service (SHS) sector was already operating well above its capacity. In 2018-19, SHS’s provided support to over 290,300 clients increasing from 255,700 in 2014– 155. Significantly there were 254 requests for assistance to specialist homelessness services per day that were unable to be met. Given this, without urgent additional national and state/territory funding, the SHS sector will be unable to service a new wave of people experiencing homelessness. CSI believes it is essential that funding is increased to the SHS system across all cohort groups and other related agencies (AOD services, mental health services, emergency relief, and financial counselling) providing support to those at risk of and experiencing homelessness.

Recommendation: That the Australian Government increase funding to specialist homelessness services in recognition of the rise in demand as a result of the economic impact of COVID-19.

Social housing- building back better

CSI also believes the post-COVID-19 environment provides an opportunity to invest in the social and affordable housing systems. Prior to COVID-19 the demand for social housing was significant with considerable waiting lists for applicants (up to 10 years in some locations). In 2018, there were 140,600 applicants on the wait list for public housing and 8,800 awaiting State Owned and Managed Indigenous Housing6 (SOMIH) and 38,300 on the waitlist for mainstream community housing data (as at 2017)7. These figures exclude people temporarily suspended from waiting lists (e.g. social housing applicants in New South Wales who take up Rent Choice private rental assistance), those who need social housing but are ineligible and others not on waiting lists but still in need, such as rough sleepers and very low-income households in housing stress.

Despite the large numbers of people waiting to access social housing, between 2011 and 2016, government spending on social housing decreased 7%, from A$1.42 billion to A$1.32 billion.8 This has contributed to a backlog of 433,000 dwellings in Australia’s social housing supply. That’s predicted to grow to a shortage of 727,000 dwellings by 20369. Australia also lacks a current widespread affordable housing scheme and faces potential increases in the number of people who are in housing stress or end up homeless as National Rental Affordability Scheme properties continue to lose their incentive payments for affordable housing.

Without addressing the shortages in social and affordable housing it will not be possible to reduce the number of people experiencing homelessness in Australia. CSI supports the

5 AIHW (2019) Specialist homelessness services annual report 2018–19 6 Australian Institute of Health and Welfare (AIHW) (2019) Housing assistance in Australia 2019, cat no. HOU315, Australian Institute of Health and Welfare, Canberra, https://www.aihw.gov.au/reports/housing- assistance/housing-assistance-in-australia-2019/contents/social-housing-dwellings. 7 Australian Institute of Health and Welfare (AIHW) (2018) Housing assistance in Australia 2018, cat no. HOU296, Australian Institute of Health and Welfare, Canberra, https://www.aihw.gov.au/reports/housing- assistance/housing-assistance-in-australia-2018/contents/housing-in-australia. 8 Pawson, H., Parsell, C., Saunders, P., Hill, T. and Liu, E.Y. (2018) Australian Homelessness Monitor 2018, , Melbourne, https://www.launchhousing.org.au/ australianhomelessnessmonitor/ 9 Lawson, J., Pawson, H., Troy, L., van den Nouwelant, R. and Hamilton, C. (2018) Social housing as infrastructure: an investment pathway, AHURI Final Report No. 306, Australian Housing and Urban Research Institute Limited, Melbourne.

5

Everybody’s Home campaigns’ recommendation for the development of a national housing strategy which seeks the generation of 300,000 new social and Aboriginal housing properties and 200,000 low cost rental properties for low and middle-income earner. Supporting the development of such infrastructure will require tapping into new sources of capital, different finance mechanisms(including different types of social impact investments10) and a government‐based solution to the financial gap between what low‐income people can reasonably pay for housing, the cost of delivering housing, and any offsets from social impact investors. It will also require development and implementation of evidence based and innovative approaches that maximise the use of capital.

One such innovative approach supported by the CSI is the Community Housing Industry Association’s Social Housing Acceleration and Renovation Program (SHARP). SHARP Under the SHARP, backed by state/territory contributions, Australian Government investment would enable the delivery of at least 30,000 additional social housing units and renovation to high environmental standards of many thousands more existing properties. Recommendation: That the Australian Government develop a coherent National Housing Strategy that includes both capital investment and leverages mechanisms to encourage investment in social and affordable housing.

CONTACT DETAILS

Chris Hartley, Research Fellow |

@CSIsocialimpact | WWW.CSI.EDU.AU

10 See Muir, K., Michaux, F., Sharam, A., Flatau, P., Meltzer, A., Moran, M., Heaney, R., North, G., Findlay, S., Webb, E., Mason, C., Stone, W., Ward-Christie, L., Zaretzky, K. and Ramia, I. (2018) Inquiry into social impact investment for housing and homelessness outcomes, AHURI Final Report No. 299, Australian Housing and Urban Research Institute Limited, Melbourne, https://www.ahuri.edu.au/research/final- reports/299, doi:10.18408/ahuri-7110001.

6