today in relation to "Economic Potential of Senior...

today in relation to "Economic Potential of Senior Australians"

Some great quotes... none for use by Kincella though.

http://www.treasury.gov.au/EPSA/content/publications/grey_gold/07_housing.asp


Housing

Housing is fundamental to enabling individuals to participate in society. Without secure, appropriate and affordable housing individuals face extreme difficulty engaging in daily life.

Australia has fallen behind other developed nations with housing affordability among the lowest in the developed world (Demographia, 2011).

Australian towns and cities developed through last century around a young nation. The housing stock was developed to meet the demands of younger people, particularly those with young families.

In 1970, the proportion of the population over 65 was 8 per cent; today it is 14 per cent; and by 2050 it is estimated to be 23 per cent (Australian Government, 2010).

With an ageing and increasingly diverse population, our current and future housing stock needs to adapt to the needs of the community.

The adequacy, availability and affordability of housing stock needs to be at the centre of governments’ policy agendas.

Stable, affordable and suitable housing is important to maintaining health, participating in paid or unpaid work and living the kind of later life that is valued. Age-friendly housing supports seniors’ strong preference to stay in their own homes as long as possible and provides the means for the delivery of home-based care.

For senior Australians, the impact of the ‘housing crisis’ has never been more stark. Current housing options are not affordable and are not meeting seniors’ needs. Individuals need a range of accommodation choices across the life course.

This includes the option to stay in current homes or neighbourhoods where friends and support networks are already established. It may mean having the option to downsize or move into assisted living.

Universal design standards are increasingly being applied to new private and social housing. However, the housing industry has been slow to adapt to the demographic changes in the population and the demand for suitable housing for an older population is only going to increase.

Governments have been slow to reform planning regulations to allow suburbs to adapt to the housing needs of the community.

Issues around affordability further limit suitable housing options for seniors. High transaction costs are a disincentive for seniors to move or downsize. High housing prices are leading to declining rates of home ownership which in turn is putting pressure on the supply of private rental properties and the availability of public housing.

There is a need to review low-income housing assistance as those on low-incomes are not being well served by current policies. Large inequalities between different forms of housing assistance treat individuals very differently, based on the form of housing assistance they receive, when otherwise they have equal means.

Specific types of housing assistance either place significant workforce disincentives on the tenant or are just not adequate given high housing costs. Opportunities may exist to leverage private and not-for-profit involvement in expanding the supply of age-friendly housing.

Housing an ageing population in a way that allows senior Australians to lead an active, productive and meaningful life is an enormous challenge.

Governments and industry must work together to achieve lasting reform. There is great scope for the not-for-profit and for-profit sectors to play a greater role in supplying houses in partnership with governments.

Unifying and coordinating housing policy
Housing policy requires a holistic, coordinated approach across government, industry and not-for-profit organisations to deliver adequate, appropriate and affordable housing options for senior Australians.

Responsibility for housing policies and programs is currently fragmented both across and within governments.

Within federal, state and territory governments many ministers are responsible for different aspects of housing.

There is a need for strong national leadership on housing issues at the federal government level.

The appointment of a housing minister with sole responsibility for all housing issues, leading a sophisticated and strategic approach to navigating the complex challenges related to housing supply and demand would improve the nation’s ability to deal with housing challenges in a whole-of-government, coordinated way.

The minister would be well positioned to progress the housing agenda nationally, working more easily with state and territory housing and planning ministers, and local governments through the Council of Australian Governments, and with housing industry organisations.

Recommendation 6
The federal government appoint a housing minister with sole responsibility for all aspects of housing policy, including housing supply and demand.

Removing obstacles to appropriate housing
Government regulations are inhibiting senior Australians from obtaining housing that suits their needs. State and territory government stamp duties discourage relocation to more appropriate housing.

These taxes act as a financial disincentive to moving, often doubling the cost of moving house. This can result in individuals not relocating to their preferred housing type, but continuing to reside in housing that is no longer suited to their lifestyle or physical capacity.

Certain states and territories have recognised stamp duty as a burden on senior Australians and have put in place policies that reduce the cost of stamp duty for some older people.

In addition to stamp duty, other state, territory and local government regulations inhibit the development of suitable housing across the life course. Land-use regulations, including planning and building controls, typically encourage the development of large, detached houses at the edge of towns and cities.

This type of housing is often unsuitable for older people as it requires relocation away from family, friends and other support networks. Most people prefer to live in their existing neighbourhood with friends and support networks. More housing that is designed appropriately and easy to maintain is crucial.

There needs to be greater acceptance that higher densities are part of the solution to improving housing affordability.

Senior Australians may be further discouraged from making appropriate housing choices, as these choices can have a negative impact on their income support payments, such as the Age Pension. The Productivity Commission (2011) has recommended changes in relation to the interaction between the Age Pension and the sale of homes. The federal government needs to further examine this area.

Recommendation 7
The federal, state, territory and local governments urgently increase housing supply and encourage more efficient use of housing stock, including through:

state and territory governments removing stamp duty with revenues replaced by more efficient taxes, such as annual land tax
state and territory governments removing regulatory impediments which inhibit the development of smaller housing and other innovative approaches
state, territory and local governments reviewing planning regulations to foster age-friendly housing and communities
the federal government reviewing how income support payments, such as the Age Pension, affect seniors’ housing decisions.
Pursuing a national agenda
The adequacy, availability and affordability of housing that meets the needs of senior Australians is key to enabling participation across society.

Suitable housing is also important for maintaining seniors’ health and chosen lifestyles.

Governments and industry need to work together to ensure all individuals, including older Australians, can access appropriate housing.

Governments have taken some steps to address the problem but more needs to be done.

Current low-income housing programs are not getting the best value for public dollars. The housing industry has been slow to innovate and adapt in the face of a rapidly changing market.

The mismatch between current housing stock and type of housing people require is clear (Kelly et. al., 2011).

Building housing that is age-friendly is critical.

Universal design standards deliver accessible and adaptable private dwellings that improve independence and social inclusion for all Australians, enhancing the ability to age in the home.

Universal design standards are increasingly being applied to new housing, bringing significant benefits. Higher costs mandating their application mean that voluntary adoption needs to be encouraged.

Recommendation 8
The federal, state and territory governments pursue a national agenda with the housing industry to address the challenges associated with housing an ageing nation, focusing on affordability and appropriateness.

Housing those on low incomes
The availability of housing for those on low incomes is at a crisis point. The current model of providing housing assistance is out of date and needs reviewing.

Senior Australians who have low incomes and do not own their own home essentially have two housing choices: accessing social housing or renting privately.

The current model needs to be overhauled to ensure there is a level playing field between those in rental housing where Commonwealth Rent Assistance is paid, and those in other forms of social housing.

Currently, individuals in public housing face multiple disincentives to participate in the workforce including:

receiving a greater level of assistance, on average, compared to people who rent privately and get Commonwealth Rent Assistance, discouraging them from working so they can remain eligible for the immediate financial benefit from public housing
when an individual earns additional income, 25 per cent will go to meeting public housing rent.
Those who are unable to access public housing face housing stress in the private rental market as levels of Commonwealth Rent Assistance are inadequate for many people.

Other forms of low income housing assistance — such as the National Rental Affordability Scheme and community housing — are presently not large enough to make significant differences to housing affordability at a national level.

Special needs of some groups may not be currently met through existing policies as the policies may assume an appropriate and affordable supply of housing is available. For example, an increasing number of older women are entering the homeless population (McFerran, 2010).

Recommendation 9
The federal, state and territory governments urgently evaluate existing low income housing policies, including the National Rental Affordability Scheme and Commonwealth Rent Assistance, with a view to increasing the supply, affordability and appropriateness of age-friendly housing.

Acknowledging the ageing challenge in the national housing agreement
The National Affordable Housing Agreement provides the framework for federal, state and territory governments to work together to improve housing affordability for Australians.

The agreement aims to ensure that all Australians have access to affordable, safe and sustainable housing.

The federal government is providing funding of $1.2 billion in 2011-12 in payments to the state and territory governments under the National Affordable Housing Specific Purpose Payment which is linked to the National Affordable Housing Agreement.

Addressing the challenge of housing an ageing nation will require effective use of existing federal, state and territory funding.

The challenge of housing an ageing population needs to be acknowledged in the national housing agreement.

Much of the current housing stock is unsuitable for seniors.

It is estimated that in the next 40 years, the number of people aged 65 to 84 years old will more than double and the number of people aged over 85 years old will increase four-fold (Australian Government, 2010).

Long-term planning is required to address this enormous challenge progressively over time.

Recommendation 10
The Council of Australian Governments renegotiate the National Affordable Housing Agreement with a view to increasing the supply of affordable, appropriate housing for senior Australians and set timeframes and targets for achieving the provision of appropriate age-friendly housing.

Measuring the demand and supply of age-friendly housing
It is important that the demand and supply of age-friendly housing is measured now.

Current levels need to be quantified and future supply and demand needs to be forecast.

The challenge of housing an ageing population into the future will be significant. Accurate data is essential to understanding the dimensions of the challenge and addressing it.

The housing industry, the disability and community sector and governments have taken an important step in setting up the Livable Housing Design guidelines but not enough information is available on the take up of the guidelines.

Measurement of demand and supply is needed so other recommendations in this report can be effectively pursued.

To pursue a national age-friendly housing agenda and reform low-income housing assistance, better knowledge about the situation is needed, including benchmarks against which future forecasts can be made.

Recommendation 11
The federal, state and territory governments task the Australian Housing and Urban Research Institute to measure the demand for, and supply of, age-friendly housing for seniors to 2050, with the National Housing Supply Council to continue this work annually as part of the ‘State of Supply’ report.

Modifying and maintaining homes
Many people prefer to age in their own homes.

Assisting individuals to age well in their own homes also makes economic sense allowing costs associated with residential aged care to be avoided.

Home modification and maintenance assists seniors to age well in their own homes.

These services are provided by governments through the Home and Community Care program.

The Productivity Commission Inquiry Report, Caring for Older Australians, recommended the federal, state and territory governments develop a coordinated and integrated national policy approach to the provision of home maintenance and modification services (PC, 2011).

The provision of home maintenance and modification services needs to be improved through a coordinated provision of service with strong benchmarks for the levels of services to be provided.

Recommendation 12
The federal, state and territory governments improve service provision under the Home and Community Care program as recommended by the Productivity Commission.