Media Release Productivity Commission report shows no evidence to support recommendations from McClure and Commission of Audit reports 9 April 2015 The release of the Productivity Commission’s report into Housing Assistance and Employment in Australia shows that there is no evidence to support a key recommendation of both the Commission of Audit and McClure welfare reviews, says the Community Housing Federation of Australia (CHFA), the national industry body representing not-for-profit housing providers in Australia. Both the Commission of Audit and the Welfare Review claim that the income-based rents in social housing constitute a workforce disincentive, and recommend that social housing tenants be transitioned from income-based to market-based rents. However a report released today by the Productivity Commission that uses modelling based on data from Centrelink and state housing authorities paints a different picture. The Productivity Commission found that once variables such as age and disability are taken into consideration there are only very small differences in employment participation between social housing tenants and those in the private rental market. “The evidence is clear that income-based rents do not constitute a workforce disincentive as claimed by the Commission of Audit and the Welfare Review,” said CHFA’s Chairperson John McInerney. “Shifting social housing tenants to market rents, will, however, dramatically increase tenants’ housing costs and reduce the afterhousing income of some of our most vulnerable citizens. What is needed is an increase in the supply of affordable rental housing, not a punitive measure that will further disadvantage the lowest income tenants.” Contact Eddy Bourke Policy Officer, CHFA 02 6232 5043 or 0407 211 413 John McInerney CHFA Chairperson 0439 447 110 1