Media release
From the Minister for Community Services and Housing
Sunday, 21 April 2002
CRACKDOWN ON PUBLIC HOUSING CHEATS
The Bracks Government is cracking down on public housing cheats who don’t pay their rent or wilfully destroy their properties, in an effort to reduce rental arrears and maintenance bills, Community Services & Housing Minister Bronwyn Pike announced today.
Ms Pike said the Government was also acting to better support public tenants with complex needs and help people who were struggling to pay their rent.
“We are turning around public housing in Victoria and implementing a decent and fair policy that will support people that need help,” Ms Pike said.
“But we are also sending a clear message to people who abuse the system that enough is enough.”
The new initiatives include:
- Requiring tenants with a bad payment history to sign up to a direct debit rent deduction scheme as a condition of offer for any future tenancy
- Fast-tracking of eviction procedures in cases of serious property damage
- Identification of tenants with large rental arrears who need support and financial counselling
- Twelve new specialist housing officer positions across Victoria to support and advise tenants with complex needs, such as mental health issues or chronic illness
- Home visits to new tenants who have experienced recurring homelessness or who have serious support needs, to provide practical advice and information, ensure they are making regular rental payments and see that their tenancy is working well
“The Government is introducing these new measures to deal with the small minority of tenants who abuse the system – while also providing greater support for people in genuine need who are struggling to pay their rent,” Ms Pike said.
“Nearly 78 % of all public tenants either pay their rent on time or in advance, a figure that has been stable for five years.
“Just 1.8 % of tenants have rental arrears dating for more than 12 weeks - yet they account for almost half the $5.2 million total.
“These initiatives will support those tenants who are already doing the right thing – or who are genuinely trying to.
“And every dollar that is saved through the Government’s crackdown will be another dollar available to improve public housing services.”
The Bracks Government inherited a significant arrears debt from the previous Government.
“The previous Government’s policy on rental arrears was unworkable. They simply evicted problem tenants, without collecting the debt, and let people back into the system without making an effort to address their issues,” Ms Pike said.
“This policy has clearly not worked and we are putting a stop to the revolving door.
“The Bracks Government is introducing new measures to support people before they fall into rental debt by identifying tenants at risk, providing budgeting advice and recruiting skilled staff.
“Twelve new Housing Support Officers will identify and connect tenants in difficulty with specialist Department of Human Services staff to examine the underlying personal reasons for rental arrears and provide support to help people get back on track.
“On top of the crackdown on arrears and new support measures for those in need, the Government is considering a debt amnesty for people who can prove that they are confronting extremely harsh circumstances in trying to pay their rent.
“The key component of the Government’s strategy is the introduction of a new policy requiring tenants with a bad payment record to sign up to a rent deduction scheme, either through Centrelink or an appropriate financial institution as a condition of offer of accommodation.
“The Bracks Government is committed to strongly tackling the rental arrears problem and targeting the minority of tenants who do the wrong thing.”
Minister Pike said that she would work closely with the Victorian Public Tenants Association and the Tenants Union of Victoria in implementing these initiatives.
Media contact: Tom Laurie - 9651 5799 / 0418 362 409