State budget housing cuts could put south-west's most vulnerable at risk

The 2023-24 budget made significant cuts to housing assistance, while offering nothing to renters.

The budget allocation for housing assistance - an output designed to "(ensure) more Victorians have a place to call home by providing services and support across the housing continuum" according to the government - has been cut by nearly $200 million from the projected 2022-23 spend, and more than $800 million from pandemic levels during 2021-22.

Western Victoria Greens MP Sarah Mansfield said the cuts revealed the government's priorities.

"Overall this budget really falls short of addressing some of those systemic issues that are impacting people's lives. There's nothing in the budget for renters, that's clear," Dr Mansfield said.

"There's four times as much in the budget for the racing industry than there is for people in housing stress or homelessness... so that speaks to priorities really."

The government has put nearly $30 million into social housing in Warrnambool in recent years through its Big Housing Build program.

The government said it expected to acquire 2800 new social housing dwellings in 2023-24, however it is likely to fall well short of its 2022-23 target of 2775. It hasn't raised its targets for the number of people being provided accommodation, nor the number of households being helped to find long-term public housing.

Meanwhile, the average wait time for public rental housing for people fleeing family violence blew out to 20.2 months in 2022-23, double the target for the year. The average wait time for other "priority access clients" was also significantly higher than the target at 16.5 months.

The state government said the blowout was "due to the sustained demand for social housing following the COVID-19 pandemic and less renters moving out".

The Greens had been pushing for an inquiry into rental and housing affordability in Victoria, which the government has consistently opposed. They had persuaded the Coalition to join the push, but were thwarted by ex-Liberal Moira Deeming joining Labor MPs to vote down the proposal in the most recent parliamentary sitting week.

Dr Mansfield said while she was "really disappointed there's nothing in the budget for renters", the Greens had managed to persuade the legal and social issues committee to "self-refer" the rental inquiry.

"That will be great because that will get evidence that is much more difficult to ignore and get it before the government and provide potential solutions to the crisis," she said.

"We've also offered to work with the government on some safeguards for renters as part of the budget bill negotiations, because the budget still has to go through parliament.

"It is such a critical issue at the moment."

In the south-west the situation is as bad as anywhere in the state. Brophy housing support and linkages programs manager Leah McDonald said it was only expected to get worse.

"Across the main adult housing and homelessness programs at Brophy, we have seen consistent numbers of individuals accessing for support this year as last year," Ms McDonald said.

But she said while demand had remained strong, the availability of accommodation had dwindled.

"The availability of motel and caravan park emergency accommodation we can access has definitely decreased to a third of what we had access to last year," she said

"Private rentals are much harder to obtain this year, from last, so we have a lower ability to support in that area also."

Ms McDonald said anyone who didn't have a home at the moment had little chance of getting one in the current climate.

"The rental market is not at a price that a person receiving Centrelink benefits can afford to rent in, let alone achieve a basic level of acceptable living standard," she said.

"To be forced on a regular basis, to choose between paying your rent or heating, medications, children's school excursions, food or insurance is a very exhausting place to be.

"The impact on mental health and well-being is also showing up in families and individuals who may never have found themselves previously needing to seek support from us."

She said the cost of living crisis showed little sign of slowing down for the most vulnerable. "We expect demand to rise due to the strain families and individuals are experiencing on the rental, mortgage and grocery fronts."

The state government's decision to raise taxes on investment properties has also prompted fears the costs will be passed on to renters who are already struggling to afford a roof over their heads.

Warrnambool Salvation Army Major Brett Alchin said it would be "a very nervous wait to see how this pans out".

"There's concern about the unknown implications when it comes to short term or rental accommodation for those who can least afford an increase," Major Alchin said.

"The fear is that more people would tend to become technically homeless: couch surfing, living with friends, or living in their car."