Community housing sector faces rates hit
Community housing providers catering for some of South Australia’s most vulnerable tenants would bear the financial brunt of legislative change being pursued by the Weatherill Government.
A bill to change the Local Government Act – expected to go before cabinet within weeks – is set to remove a council obligation to provide a 75 per cent rates rebate on properties transferred from the state Housing Trust to the not-for-profit sector.
It’s understood the change – quietly included amid a raft of other reforms – has been pushed by the Local Government Association after councils spoke out against State Government “cost shifting”.
A plan to transfer 5000 Housing SA homes to welfare agencies was expected to hit council coffers, as by law “the rates on land being predominantly used for service delivery by a community service organisation will be rebated at 75 per cent or higher”.
As InDaily reported last month, the state has already transferred 1100 properties across Elizabeth Grove, Elizabeth Vale and Mitchell Park to community housing providers AnglicareSA Housing and Junction Australia, however it’s understood those providers signed a contract agreeing not to claim the rebate.
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But the proposed legislation seeks to remove the rebate altogether “on land being predominantly used for the provision of prescribed accommodation by a community housing provider”, where control has been transferred from the Housing Trust.
Consultation on the bill, which falls under the purview of Local Government Minister Geoff Brock, ended last week. An internal LGA circular distributed to the chief executive and elected members sought feedback on its draft provisions, including “protecting councils from having to provide rates rebates to certain community housing providers”.
In a statement to InDaily, LGA President Dave Burgess said the association “requested the legislative change as part of large scale community housing transfers in response to the impact on other ratepayers and communities from the loss of rate revenue currently paid by the State Government”.
“The LGA remains concerned with the potential longer-term impact of large transfers of Housing SA homes on councils and communities that can least afford it,” he said.
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A spokesman for the Community Housing Council of South Australia, which represents the various not-for-profit agencies, said: “Any decision to legislate this arrangement is a matter between the State and Local Government.”
“However, the CHCSA Board believes any decision may be premature given the Government is yet to go to tender on the remaining 3900 homes and explain their terms and conditions,” he said.
The change would not impact on tenants themselves, whose rent is capped by law.
SA Council of Social Service Executive Director Ross Womersley was unaware of the proposed change when contacted by InDaily, and suggested there had not been a broad consultation. He said the proposed legislative change “certainly leaves some qualms”.
“I’d be concerned for other housing associations and how they’re protected from suddenly finding themselves liable for these kinds of payments in future,” he said.
A spokesman for Minister Brock said the bill was still being finalised but was “expected to be introduced into parliament sometime in July”.
“As you’re aware, it would be improper for the Minister to comment on a Cabinet document until after it’s been through the Cabinet process and introduced,” he said.
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