While the 2023/24 Victorian Budget includes $134 million to deliver access to housing and homelessness support, amidst increasing demand for these services, this may still fall short.
The latest Victorian budget includes $67.6 million for Housing First responses and support, with homelessness services to receive $35.9 million in 2023/24 and $134 million over the next four years.
Housing First responses and supports target providing permanent supportive housing responses to Victorians formerly sleeping rough.
The budged also includes specific services for women and young people experiencing homelessness and additional health, drug and alcohol supports to those in crisis accommodation.
According to the Council to Homeless Persons, Victoria’s homelessness services are currently placing over 4,000 individuals and families in hotels and crisis accommodation each month, as the state and the country at large grapple with the ongoing housing crisis.
“We are pleased to see this budget delivers some desperately needed support for rough sleepers through investment in Housing First responses,” said Deborah Di Natale, CEO at the Council to Homeless Persons.
“Still the State Government should commit to building at least 6000 social housing properties each year for a decade.”
The Council to Homeless Persons noted that the budget included no new capital investment into guaranteeing people at risk or experiencing homelessness with safe and secure accommodation, beyond the government’s Big Housing Build.
“The Big Housing Build is proof this government acknowledges the massive need for more social housing. But with 57,000 households on the waiting list, that initiative simply cannot be a one off,” added Di Natale.
“As a state we’re investing in over 55,000 nights of short-term accommodation each month. This is nowhere near enough to meet demand and does nothing to end someone’s homelessness. That’s where the combination of housing and support through H2H was remarkable,” said Di Natale.
Budget papers found wait times for public housing will only increase on the current course, to an average 16.5 months for those on the priority wait list.
January saw more than 640,000 Australian households whose housing needs are not being met, with the number is set to jump to 940,000 by 2041, according to Community Housing Industry Association.
Last month, the Council to Homeless Persons proposed a new funding model that would address the $11,400 per annum gap in renting affordable housing in Victoria versus renting social housing, through enabling the Victorian government to convert 7,000 affordable homes in social homes over the next four years.
In February, the government announced it would spend $50 million from the Big Housing Build to deliver 130 new homes to aid young Victorians who make up more than 16% of homeless people in the state.
Samantha Ratnam, leader of the Victorian Greens, also stressed that the budget failed to address the state’s housing crisis.
“In fact, today’s Budget spends four times more on the racing industry than it does on people experiencing housing stress or homelessness,” said Ratnam.
“If Labor was serious about tackling the housing crisis, they would be building more public and affordable homes. They would be introducing a rent freeze to support renters doing it tough.”
With Quentin Kilian, CEO at REIV, “dismayed” at the budget’s failure to provide relief to renters, arguing that land tax increases will worsen the crisis.
“Larger land taxes are a disincentive for investors which will ultimately drive rental prices upwards as supply fails to catch up to demand. Renters already doing it tough – are also set to suffer under this new levy. This is not good news for Victorians,” said Kilian.
Meanwhile the latest Mission Australia report A Safe Place to Call Home – Mission Australia’s Homelessness and Stable Housing Impact Report 2023 reveals that demand is rising for the charity’s homelessness and housing services.
The report shows a 26% increase in demand for Mission Australia’s homelessness services over the past three years, and a 50% increase in people who are seeking help after they’ve become homeless rather than when they are at risk.
Mission Australia’s CEO Sharon Callister said frontline staff are seeing an influx of people seeking help.
“They’re telling us the housing situation is the worst they’ve ever seen it. Australia needs to be doing so much more to be on the front foot to prevent and end homelessness in our country, instead of band-aid crisis solutions.”
The findings come as more people needing help are being turned away from homelessness services across the country, mainly because there was no accommodation available. On average, 300 requests for help are turned away every day (AIHW 2022).
Mission Australia is calling on governments for greater investment in homelessness prevention and support services, and for investment in one million new social and affordable homes.
“Without a significant boost of social and affordable housing across the country, homelessness cannot be eradicated. Mission Australia is calling on governments for greater investment to build the one million new social and affordable homes that will be needed over the next 20 years to ensure that everyone who seeks help is connected to a safe place to call home,” Callister said. “We also need far more investment in homelessness services, particularly those focused on prevention, and to extend the length of service contracts. This would enable our incredibly compassionate and skilled frontline staff to meet the increasing demand and help everyone who needs it.”
