Thursday, 27 February 2025

Indigenous housing system reform: alternative approaches

 

How shall your houseless heads and unfed sides

Your loop’d and window’d raggedness, defend you

From seasons such as these? O, I have ta’en

Too little care of this!

King Lear Act three, Scene four.

This month, AHURI published a new paper titled ‘Indigenous housing support in Australia, the lay of the land’ (link here). Authored by a team led by Associate Professor Megan Moskos, the paper is one element in a larger inquiry into developing a suggested architecture for a long-term governance and resource framework for sustainable and effective Indigenous housing in Australia (link here). The research team has substantial expertise in research into Indigenous housing issues.

This is an important research report as it lays the foundations for the development of what is planned to be a comprehensive proposal for a national policy reform agenda for Indigenous housing in Australia. A second research paper will present evidence collected in eight case studies of different elements of the Indigenous housing system, and a third research paper is planned to combine reports one and two to present a national Indigenous housing governance and resourcing framework. I strongly recommend the report to readers, as it combines comprehensive analysis, builds on and references a deeper literature related to Indigenous housing, and begins the process of exploring potential policy and reform options.

However … the report and the larger inquiry are seriously ambitious as they are seeking to develop an analytic framework that encompasses a truly diverse and complex set of institutional and administrative arrangements across eight jurisdictions, that are themselves confronting rapidly changing demographic circumstances spanning major urban centres to very remote communities and homelands.  Moreover, the public sector environment within which policies are developed and implemented is itself facing significant change in the face of societal level political pressures and ongoing social, economic and technological change both nationally and globally. The report itself acknowledges this when it refers to ‘a very dynamic policy and program environment’ as the first key point of the Executive summary.

The report does an excellent job of summarising at a high level the state of Indigenous housing governance, resourcing and regulation across the nation. It avoids assessing the trajectory of the Closing the Gap strategy in relation to both mainstream and community-controlled housing (I am not optimistic). But it is more definite in pointing to the absence of a single agency with overall responsibility for developing a strategic direction for Indigenous housing policy and for comprehensive reporting on its outcomes. I would have been more critical, as this is a role that a proactive Minister and NIAA could and should run with. Their failure to do so is likely a reflection of more systemic constraints. Instead — notwithstanding the Commonwealth’s powers granted in the 1967 referendum — decisions on strategies and funding allocations have in recent years increasingly been left to the states and territories. The Commonwealth does retain some specific funding in the NT (and thus concomitant influence over policy should it wish to exercise it) because at the prescient insistence of the Land Councils, a substantial number of social housing leases on Aboriginal land were granted to the Commonwealth and are sub-leased to the NT Government.

The report argues that the tenure profile of Indigenous households nationally differs fundamentally from that of mainstream households. Over two thirds of Indigenous households live in private-sector tenure (home ownership or private rental) and around one quarter of Indigenous households are in social housing (in contrast to only 4 percent of mainstream households). The report argues that high rates of homelessness, overcrowding and housing affordability stress along with the distinctive distribution of the Indigenous population necessitates a very different set of policy responses than those for non-Indigenous households. This is a conclusion that warrants reconsideration in my view.

A crucial element in the analytical edifice the report constructs is an assessment of what is termed Unmet Core Housing Needs.  Utilising an established methodology for assessing housing needs, the report estimates that in 2021, some 47,700 Indigenous households had unmet core housing needs. This comprised three elements: over 81% arose from rental stress (ie rent payments above 30 percent of household income), 14% arose from severe overcrowding, and 4% arose from inadequate housing. According to the report:

Areas with the greatest levels of unmet need include many parts of New South Wales and Queensland, where rental stress is concentrated, and remote Australia, where much of the unmet need arises from overcrowding in social housing (page 4).

The report goes on to identify ‘a strong need’ for the development of a national strategic framework underpinned by robust, needs based, evidence and accompanied by state and territory strategies that set clear targets. It also argues for a national body to be established by legislation. Such a body, the report argues, should provide a mechanism for local and regional housing interests to be represented and heard at the national level. The policy frameworks established should be flexible and responsive and adopt a ‘pathways approach’ from homelessness to social housing and from private rental to home ownership.

Finally the report argues that:

Any policy development should also account for the geographical and demographic diversity of Indigenous populations… flexible strategies are required that provide for representation and responsiveness to local contexts and needs. … Most importantly, it means the focus on remote housing does not come at the expense of urban housing but remains [focussed] on the distinctive needs of Indigenous people in both urban and remote areas (page 5).

As one would expect, the report’s data analysis is rigorous and perceptive. Where I diverge from the perspective of the report’s authors  is in the normative assumptions that are embedded within the report’s vision for the future.

My high-level critique of what is proposed is as follows:

First, the proposed architecture for the Indigenous housing strategic framework essentially mirrors the closing the Gap architecture put in place in 2020, where in effect the NIAA vacated the field and rather than playing the role of ringmaster, adopts a more passive role of being just one jurisdiction among nine. This is not what the electorate voted for in 1967, and it has led to a leadership vacuum in the closing the gap process, with the Coalition of Peaks trying to push the unresponsive Commonwealth and the other jurisdictions as if they were pushing lengths of rope. Moreover, there is not one system, but nine separate administrative, programmatic and political systems. We currently have that in the Indigenous housing sector too, but maintaining it is not reform. While a legislated body could theoretically create an effective leadership framework with the Commonwealth in partnership with Indigenous interests in the driver’s seat, the political will to implement such legislation does not exist at present. In my view, setting out to establish a separate policy framework for Indigenous housing will inevitably end up in the same swamp the Closing the Gap process is bogged down in.

Second, while I understand the desire to create a unified Indigenous housing framework that somehow removes the structural tensions that exist between remote and non-remote Indigenous populations, the implicit assumption that rental stress is on par with overcrowding and inadequate housing as the third element of unmet core housing needs is in my view counterproductive. Rental stress is as much an outcome of poverty as of housing policy deficiencies. While I accept unreservedly that non-remote Indigenous populations have significant socio-economic disadvantages to overcome, hyper-incarceration being perhaps the most egregious and obvious example (link here), the elevation of rental stress to a statistical equivalence with the consequences of overcrowding and inadequate housing as currently experienced in many remote communities is high risk and thus a policy mistake.

In my view, the policy priority ought to be unequivocally built on removing all overcrowding and inadequate assets in the social housing system. The inevitable outcome of not doing so would be that more numerous non-remote Indigenous interests would incentivise government to redirect urgently required resources for new housing and infrastructure towards urban and regional populations that are already the beneficiary of basic essential services. I will happily admit that my views here reflect my own normative value framework that sees the circumstances of remote Australia as being a national disgrace and therefore an overarching priority. In defence of those views however, I would argue that housing is crucial, and the appalling state of remote housing is (along with low employment, declining education outcomes and ongoing health issues) a core driver of the rock bottom socio-economic status of a substantial cohort of remote citizens and a key driver of the social crisis that currently envelops many remote communities (link here).

Third, given recent shifts in public opinion post referendum, and indeed recent shifts in global politics which will inevitably place extraordinary pressure on national budgets whatever the partisan makeup of the government in office, there is in my view a very strong argument for rethinking any strategy based on establishing a separate Indigenous housing system. Instead, I am inclined to a view I have heard articulated more generally by the Shadow Indigenous Australians Minister, Senator Price, namely, to shift to a mainstream model built around social housing provision, scope for community housing solutions to complement the social housing asset base, and broad access to Rent Assistance, with a robust needs-based criterion for the allocation of funding resources at its core.

Such a model if implemented effectively would maximise the chances of new and ongoing social housing funding being allocated by governments over the coming decades. Indigenous citizens are over-represented in the social housing cohort, so would be significant beneficiaries while not having the burden of arguing for specific indigenous based funding allocations.

My perspective on this issue is reinforced by the reality that the nascent Indigenous advocacy capabilities across the Indigenous housing policy domain are comparatively weak and are no match for competing interest groups who will want to get access to any available funding. While mainstream social housing advocacy capability found primarily in NGOs is also comparatively weak vis a vis corporate interests, it is more robust than the Indigenous advocacy capability. I am confident that the extent of Indigenous housing needs across the board are such that Indigenous interests would inevitably obtain a substantial proportion of available resources providing a robust needs-based system applied. I might note in this context that the AHURI report tiptoes around the issue of Indigenous advocacy capabilities. Yet any realistic assessment of the scope for building greater self-determination throughout the Indigenous housing policy system must address this issue.

I should note that accepting a mainstream needs-based funding model does not mean that there is no scope for community-controlled entities to pay a significant role in program delivery in particular locations or regions and even in devising more innovative policy arrangements such as greater use of community housing organisations. It is worth remembering in this context that the most successful community-controlled organisations in the country are the medical services that are built on the foundation of access to a mainstream needs-based funding model, namely Medicare.

Finally, given I have been relatively freewheeling in my critique, it is incumbent on me to outline at least in brief my own vision for a future housing policy framework:

Some of it I have mentioned already. A needs-based mainstream policy framework for allocating resources for social housing. A stronger Commonwealth role in shaping the national social housing policy system. A mainstream policy focus addressing rental stress as part of a wider strategy to address economic exclusion and inequality in society generally. Prioritising addressing overcrowding and inadequate housing over rental stress. Prioritising the needs of disabled citizens in both social housing design and management. A push to considerably expand the use of community housing organisations (whether Indigenous controlled or not) which both own and manage housing stock across both remote and non-remote Australia at a scale that makes them commercially viable. A recognition that there is market failure present in the provision of private housing in remote communities and this requires the use of innovative leasing solutions and/or community trusts which sit between the private and public systems. The AHURI website includes some research papers by Louise Crabtree and others on Community Trusts as a policy solution for remote communities (link here).  A renewed focus on infrastructure provision in remote contexts, including by expanding the remit of the NAIF in financing social infrastructure (link here). A much stronger focus on equitable access to renewable sourced power in remote communities (link here). A stronger role for strengthened Indigenous advocacy within high level mainstream policy forums for the housing system (noting that part of the process of strengthening capability is to strengthen internal transparency and governance).

Such a broad model would not remove the ongoing challenges. It would however avoid fracturing the social housing system into artificial silos, such as for Indigenous citizens, for disabled citizens, for recent immigrants, for mainstream citizens…instead it argues for a single overarching model with robust needs-based systems driven by evidence. The advantages of such a model are more than ideological unity; they include minimising the risk of multiple queues based on differing criteria and thus moving at different speeds in terms of waiting times for access to housing, waiting times for repairs and maintenance, waiting times for ancillary support, and maximise choice while reducing risk of governance failure. These risks are not trivial; the history of Australia is that when the nation has a choice, it chooses to prioritise the non-Indigenous queues.

The bottom line is that reform of the national housing system for Indigenous people is desperately overdue. But so too is the mainstream social housing system in need of fundamental reform. Whatever the design of the new model, it will require more than additional funding. It requires the Commonwealth Government to step up. It will require innovative thinking and focussed perseverance at all levels. It will require leadership and deep consultation. Yet it is almost impossible to get wider community engagement on the issues involved. This report (and hopefully the follow up reports) provide a platform for wider discussion of these issues. AHURI and the report authors deserve congratulation for their efforts. While they have deepened the community’s knowledge base on these issues, I hope that over the coming months they and the various peak Indigenous housing bodies can also communicate their ideas to the wider community and broaden our knowledge base as well as taking the first steps in building the case for real housing reform.

 

27 February 2025

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