Gov backs down on NRAS cuts

The federal government has retreated on its former decision to cut back the National Rental Affordability Scheme to help fund flood recovery.

By Yasmin Noone

The Australian Greens, not-for-profit aged care providers and affordable housing advocates have successfully convinced the federal government to back down from its proposal to cut the National Rental Affordability Scheme (NRAS) to help fund flood recovery.

The Australian Greens have announced that, with the help of community and sector pressure, the federal government has retreated from its former proposal to reduce the size of the cap on the number of planned NRAS dwellings from 50,000 dwellings to 35,000.

Instead of cutting $264 million worth of NRAS funding, the Gillard government will now defer the expenditure until after 2015, as proposed by national affordable housing and not-for-profit peak bodies.

The negotiated deal also ensures support for the passage of the Gillard flood reconstruction package legislation.

Australian Greens housing spokesperson, Senator Ludlam, said that this move would allow the sector to play “catch up”, rather than be cut down.

“NRAS is by no means perfect,” Senator Ludlam said. “But it’s an essential part of the housing affordability landscape.

“I acknowledge and thank the government for negotiating constructively, and congratulate the nation’s housing affordability peak bodies for their strong advocacy…”

The retreat has resulted in a win-win situation for all involved, including aged care and housing advocates who have been campaigning against the proposed NRAS cut since it was first announced around three weeks ago.

The Older Persons Affordable Housing Alliance – a partnership between Aged and Community Services Australia (ACSA) and the Council on the Ageing (COTA) –commended the government’s decision to retain the original goals set for NRAS.

Chief Executive of COTA Australia Ian Yates and Acting CEO of ACSA Pat Sparrow said the recent proposal to cut dwellings from the program to help fund flood recovery was shortsighted.

“We are delighted the government has listened to the widespread calls to maintain the target of 50,000 dwellings under the first phase of the scheme,” they said.

“Deferring investment in the program until 2015 is far from ideal but preferable to cutting the funding altogether. It should be reviewed as soon as the budget is in surplus.

“Affordable housing initiatives must be supported amidst a critical housing shortage and the challenges of meeting the needs of an ageing population.”

Ms Sparrow highlighted that the current make up of the parliament and the amount of power now held by the Australian Greens is probably what pushed the government to scrap its initial suggestion.

“We shouldn’t underestimate the current make up of parliament,” Ms Sparrow said. “We are potentially in the position to have good policy debates and good decisions made.

“I think it was a great decision, and a great common sense decision for government. The fact that could defer it was an easier decision for them to back down from than others.

“…I guess now, the trick is to look at it in the context of the federal budget and check to see that [the NRAS expenditure] is in the forward estimates, so that it actually does happen.”
 

Tags: acsa, australian-greens, cota, nras, older-persons-affordable-housing-alliance,

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