Federal Government cuts funding for housing programs, shocking peak bodies

Updated

The Federal Government has cut funding to housing programs as it looks to make more budget savings before Christmas, leaving several peak housing bodies shocked by the timing of the announcement.

Community Housing Federation Australia's executive director Carol Croce said the organisation was told yesterday its funding contract had been rescinded and would be ceased in June 2015, a year earlier than planned.

Ms Croce said she did not predict the announcement at all.

"I had no idea that this was coming. Our funding comes from a part of money for the housing and homelessness program, which is roughly $21 million over four years," she said.

"That entire program has been, I guess you could call it, axed."

Ms Croce said organisations like hers are crucial advocates.

"We act as a conduit for government. We provide a one stop shop if you will, of information about what are the concerns in the sector, in our case, for community housing and the people that they have.

"And we provide that information to government and, by the same token, we're also a conduit the other way, where government is able to get their message out about their policies and programs through our organisation.

...[the funding cuts are] a blatant attack on organisations which have had to point out uncomfortable truths to governments for nearly 40 years. Labor spokeswoman for housing and homelessness, Jan McLucas

"So, without that kind of a voice, I don't see how that process will work."

She said as Australia's housing affordability crisis continues, her organisation also carries out important research.

"We did a project that looked at the capacity of the community housing sector to provide housing for those people who are going to be receiving NDIS (National Disability Insurance Scheme) packages who want to live independently," she said.

"So that's I think very essential and important research that needs to be done that will help the Government to set their policy, and also allow our sector to figure out what kinds of things do we need to do to get ourselves ready for the new people who are going to be coming in through the NDIS."

National Shelter executive officer Adrian Pisarski said the federal money to his group will run out in June next year.

"It's a really callous act to cut the voice of the homeless a couple of days before Christmas," he told ABC News 24.

"I'm not sure now how the Federal Government expects to receive advice from that sector."

Greens and Labor condemn funding cuts

There is still uncertainty about the extent of the cuts but the Greens have said it is just the beginning.

Senator Rachel Siewert, Greens spokeswoman for family and community services, said it appears disability groups and financial counselling services have also been affected.

"Of course the Government is cutting $241 million from this discretionary granting program, so we're still yet to see the full extent of the cuts," Senator Siewert said.

"The Government, when they came in, said they wouldn't gag advocacy groups, or they wouldn't gag clauses in advocacy groups or community organisations' funding agreements.

"What they're doing here is just cutting straight out the funding for those organisations."

Labor's spokeswoman for housing and homelessness, Jan McLucas, also condemned the cuts.

She said the organisations National Shelter and Homelessness Australia have also had their funding axed and described the cuts as "a blatant attack on organisations which have had to point out uncomfortable truths to governments for nearly 40 years."

Topics: housing, government-and-politics, australia

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