Budget delivers welcome new money, but homelessness crisis still needs more

Council to Homeless Persons has welcomed new Victorian Budget funding for social housing and rough sleeping outreach, but says the package falls short of the scale needed to tackle the state’s worsening homelessness crisis.

The Budget confirms funding for 7,000 new social housing properties over the next decade, including a 10 per cent allocation for First Nations people, alongside $26 million to expand assertive outreach and emergency accommodation for people sleeping rough.

CHP Chief Executive Officer Deborah Di Natale welcomed the investment but said it remains well short of what is needed in Victoria. 

“This Budget contains important and very welcome steps, especially the expansion of assertive outreach and the commitment to 7,000 new social homes,” Ms Di Natale said.

“But in a Budget forecasting $2 billion surpluses across the forward estimates, Victoria needed a response that better-matched the scale of the crisis.

“The Government says this is a Budget that works for people. It must work for all people, including the Victorians sleeping in cars, tents, refuges and overcrowded homes tonight.”

Ms Di Natale welcomed the $26 million assertive outreach and emergency accommodation investment as an important recognition that Victoria’s current outreach system was not reaching enough people sleeping rough.

“Assertive outreach is life-saving work. It finds people who are otherwise left invisible and connects them to housing, health care and support,” she said.

“This funding is welcome and will expand this vital lifeline to new areas of Victoria.”

The Government’s pre-Budget housing announcement included an initial $860 million for 7,000 additional social housing properties over the next decade. More funding will be needed beyond the forward estimates to meet the target.

Ms Di Natale said the commitment was welcome while noting it represented only a fraction of the need.

“Seven thousand homes will change lives. But it is barely 10 per cent of what Infrastructure Victoria has recommended the Government build,” she said.

“Victoria needs thousands of new social homes every year to reduce the waiting list and stop more people being pushed into homelessness in the first place.

“It is disappointing the Budget does not support growth in public housing, which remains the strongest safety net for people with the greatest need.”

Budget papers show an increase in average wait times for social housing. Victorians waiting for long-term social housing are this year expected to face average wait times of 18.1 months, rising to 18.6 months for victim-survivors of family violence on the priority list.

CHP also welcomed a 30 per cent boost to Tenancy Plus, equivalent to about $3 million a year on top of existing funding, but said more prevention funding is needed. 

“It is far better, and far cheaper, to stop someone becoming homeless than to try to help them rebuild their life after they have lost housing,” Ms Di Natale said.

“The Tenancy Plus increase is a valuable prevention measure supporting residents in social housing to keep their tenancies. But there is no boost to the Private Rental Assistance Program or the Aboriginal Private Rental Assistance Program, despite more working people turning to homelessness services because they simply cannot keep up with rent.”

“This Budget takes some real steps forward. But the homelessness crisis is growing, and Victoria needs a much bigger plan to prevent homelessness, increase both public and community housing, establish more innovative prevention measures, and make sure every person has a safe place to call home.”