NSW introduces vacant bedroom tax for tenants who refuse to move out of oversized homes
NSW introduces vacant bedroom tax for tenants who refuse to move out of oversized homes; Pensioners who refuse to move out of public housing to make way for families will be charged higher rent
Tweet Topic Started: 26 Jun 2013, 01:49 PM (1,580 Views)
The Minister for Family and Community Services, Pru Goward, says the new bedroom charge was needed to provide housing to needy families.
Single people and pensioners who refuse to move out of public housing to make way for families will be charged higher rent to stay.
The Minister for Family and Community Services, Pru Goward, said the new vacant bedroom charge was necessary to provide housing access to more needy families.
Ms Goward said there are more than 17,000 houses with three or more bedrooms occupied by single people or couples, which has left 35,000 bedrooms vacant.
Singles will pay an extra $20 each week and couples $30 per week if they refuse to find "more suitable" accommodation.
"We understand that vacant bedrooms often come about because public housing tenants' families grow up and leave home, or because of family breakdown, just like other families," Ms Goward said.
"Single tenants and couples who are living in large properties should move to a more suitably sized home when one is available.
"This is only fair and reasonable, both to vulnerable families on the waiting list as well as NSW taxpayers that heavily subsidise public housing."
Priority status on the transfer list will be given to tenants who agree to relocate.
If a tenant refuses two offers of alternative accommodation and chooses to remain in an oversized property, they will be charged the extra fee.
"This will act not only as an incentive to house more needy families with children, but will mean that tenants pay a fairer contribution for vacant bedrooms," Ms Goward said.
$20 a week? That's not going to encourage many people to move. Should be twice the difference between their oversized accommodation and appropriately sized accommodation.
Yes, I know these people can't afford that, but that's the point!
Property speculation is a type of gambling... But everyone knows that in gambling, the house always wins in the end.
$20 a week? That's not going to encourage many people to move. Should be twice the difference between their oversized accommodation and appropriately sized accommodation.
Yes, I know these people can't afford that, but that's the point!
Sunder wants out of his one bedroom apartment and into a heavily discounted inner west house.
It makes good sense, so do limits on rents charged by private landlords. It's about time the needy people of Australia got something back from the property fatcats that have been living high on the hog all these years. My grandmother told me that her rent was fixed all throught the 1940's. Too much greed in the world today. Tina.
Not to take your mind off the Federal Election that's to be held tomorrow, but if you are a tenant in NSW Public Housing there is another important date that is fast approaching - on Monday, September 9th, HNSW will flick the switch on the new 'better approach to filling vacant bedrooms' policy. We expect to see the full details of this policy on Monday.
This policy has been referred to as a new 'vacant bedroom charge', but you might have also heard it mentioned as the spare bedroom tax. Essentially, it will require tenants with more bedrooms than allowed by their entitlement to make a choice: pay the same for less, or pay more to stay the same.
We've already spoken about this a couple of times on the Brown Couch, and it is worth revisiting those discussions for a refresher about what we already know. You can find these posts here, here and here.
But to summarise, briefly: tenants who have more bedrooms than they're entitled to (based on the policy at this link) may be asked to relocate to smaller premises. If they are asked, and they decline, their rent subsidy will be adjusted so that they pay more. For singles, this will mean a rent increase of about $20 per week; for couples, it will mean a rise of about $30 per week.
If, on the other hand, the tenant chooses to relocate to a smaller premises, they will be placed on the waiting list for a transfer, and will be considered a priority applicant.
Since writing those earlier posts, we have had some further discussions with Housing NSW about how this policy will be implemented. Here's what we have been lead to understand:
1. HNSW has said that it will not be approaching every tenant with spare bedrooms to discuss relocation. There are some tenants who, for one reason or another, will be left alone. HNSW has not given us anything concrete to go on as to who will be exempt and why - other than to say the decision to approach or not approach a tenant will be made on its merits, in each particular case.
2. HNSW has said that it will take a 'measured approach' to contacting tenants whom they would like to consider relocation. As far as we can tell, this means that they will not be sending letters out en masse, but will make an approach to affected tenants in person. They have said that this will be done by workers who have had some previous experience in assisting tenants through the process of relocation...
3. Tenants who agree to relocate, and are placed on the waiting list for a 'priority' transfer, may still have a lengthy wait for their new home. This will vary depending on the nature of the property required, and on other demand for properties in their area. In particular, a tenant who has agreed to relocate in order to free up a property they have been 'under-occupying' will not be housed before an applicant for housing who has been assessed as 'at risk' (according to the eligibility criteria - and unless the under-occupying tenant is also assessed as being 'at risk' in addition to being an under-occupant).
4. A tenant who does not agree to relocate will have their rent subsidy adjusted immediately. A tenant who does agree to relocate will continue to pay according to their current rent. At some time, these agreeable under-occupants will be offered new properties and asked to move. If they do not then accept one of two offers (assuming the offers are 'reasonable', which means they will be subject to the usual processes of review and appeal), their rent subsidy will be adjusted to include the 'vacant bedroom charge'. They will also be removed from the transfer list.
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