Productivity Commission to review National Housing and Homeless Agreement

The commission is set to conduct a scheduled review into the National Housing and Homelessness Agreement (NHHA), to determine the effect to which the program is meeting its objectives.

The NHHA commenced on 1 July 2018, providing around $1.6 billion annually in Commonwealth funding to support states and territories in delivering housing and homelessness services and programs.

Under the program, state and territory governments are required to have publicly available housing and homelessness strategies and to contribute to data collection and reporting.

The Productivity Commission will consider options to maximise the impact of the Commonwealth’s investment and improve progress towards achieving a “well-functioning social housing system”, affordable housing options and an effective homelessness service system.

The review will take place under the Productivity Commission’s mandate to review nationally significant sector-wide agreements.

A final report is due to be released by 30 June next year.

It has followed a parliamentary inquiry into housing affordability by the House of Representatives tax and revenue committee, chaired by Liberal MP Jason Falinski.

The government also announced last week that it would be rolling over 4,651 unused grants for first home buyers under the Home Guarantee Scheme from the 2021 financial year, giving aspiring buyers a second chance after COVID disruptions.

The International Monetary Fund (IMF) had recently reaffirmed its calls for Australia to reform its housing supply and tax policies, expressing concerns around surging house prices.

Treasurer Josh Frydenberg stated he would continue to discuss lending standards with APRA and the Reserve Bank, similarly stating that he was concerned with the “heat in the housing market”.

Meanwhile, the National Housing Finance and Investment Corporation (NHFIC) declared that it would be teaming with the NSW state government’s planning corporation, Landcom, to seek out housing affordability and supply solutions for the state.

The agreement came as the NHFIC released research showing that across regional NSW and Tasmania, the bottom 40 per cent of income earners could afford up to a tenth of homes for sale.