Reducing Workforce Disincentives

Reducing Workforce Disincentives

The Commonwealth, States and Territories agree that reducing barriers to employment and increasing social and workforce participation for Social Housing tenants is an important priority for the term of this Agreement.

States and Territories agree to research and better understand the nature of the barriers to Social Housing tenants accessing employment opportunities. The findings will be used to reduce or remove barriers to employment for Social Housing tenants through a combination of measures including rent reform. States and Territories will introduce rent policies that reduce the workforce disincentives associated with the current link between Earned Income and rent. Strategies to reduce workforce disincentives will include a combination of but are not limited to:

 Improving the location of Social Housing in relation to employment markets;

 Improving access to services and public transport for Social Housing tenants;

 The renewal of public housing estates;

 Allowing tenants to transfer to alternative public housing in order to increase workforce participation opportunities, including interstate transfers; and

 Improving the efficiency and effectiveness of existing workforce incentives in relation to the way rents are calculated.

For Indigenous people, reducing workforce disincentives is a desirable policy direction and special strategies may be required in recognition of the differences in structures and needs of Indigenous households.

The Commonwealth, States and Territories agree to develop a nationally consistent approach to the way rents are calculated, one which also allows flexibility between States and Territories, tenant circumstances and product types. In developing a national approach to the way rents are calculated, the main principles will be:

 Rents remain affordable;

 Methods used to calculate rents are applied fairly across all income support groups;

 Methods used to calculate rents are promoted and clearly explained to tenants, to ensure they are aware of how those methods operate.

States and Territories will demonstrate the effectiveness of measures as part of their annual reporting for Grant Years one to five. The milestones and performance reporting to be achieved during Grant Years one to five will be set out in Bilateral Agreements and will be implemented within the life of this Agreement.