The housing industry is less than impressed with the Federal Government’s axing of the final round of the National Rental Affordability Scheme (NRAS).
Since it was established, NRAS has delivered 14,000 affordable homes, with a further 24,000 homes in the pipeline across the country. However, round five of the scheme will not proceed as a result of the 2014 Budget – withdrawing $235.2 million from the program over three years.
Green Building Council of Australia's (GBCA’s) Chief Executive Romilly Madew expressed disappointment at the decision.
“The Abbott Government is making a short-term decision – saving $235.2 million over three years – at the expense of long-term affordability for people on the lowest incomes.”
“NRAS has been a driver of affordable housing projects across Australia, and many NRAS projects have met Green Star benchmarks for sustainable design and construction.
“These projects have fundamentally changed the low-cost housing market for the better.
Affordable housing projects are now routinely integrating energy and water efficiency measures to achieve more sustainable, affordable outcomes for the people who can least afford big utility bills,” Ms Madew said.
“Scraping NRAS funding will make it harder for urban, regional and rural areas to provide affordable housing.”
Executive Director of the Residential Development Council Nick Proud said that the move was disappointing but he welcomes a dialogue to create a new scheme.
"This could include levers such as a Commonwealth Land Audit flagged in the Government’s own Commission of Audit”, Mr Proud said.
"Notably, it is important that levers such as the National Affordable Housing Agreement have been retained. This ensures the Federal Government can maximise its return on its investment from funding to the States.”
“In the ‘Age of Opportunity’, as the Treasurer calls it, we need to make sure that everyone has the opportunity for affordable, sustainable, liveable housing”, Ms Madew added.
“That is how we will build a stronger, more sustainable future for everyone”, she concluded.