Neoliberal highway to public housing hell

May 5, 2025
Issue 
Communities pushed for NSW Labor to build public housing on this vacant block on Parramatta Road but it has only committed to less than half of the 500 units being discounted for essential workers. Photo: Action for Public Housing/Facebook

Amid the biggestin Australia’s history, public housing is being destroyed bysell offs Ի. This is leading to the shameful neglect of some of the most vulnerable. Some public housing tenants now say they are more isolated.

When the Commonwealth Housing Commission was firstestablished to address in 1943,housing was considered a basic right. Its landmark laid out a federal and state plan for public housing. “A dwelling of good standard and equipment is not only the need, but the right of every citizen ... no tenant or purchaser should be exploited for excessive profits,” it said.

The report also highlighted that “private enterprise … has not adequately and hygienically been housing the low-income group”, a reflection of the socio-economic damage inflicted by greedy landlords and governments’ lack of support for the poor.

The firstwas purpose-built to address both concerns. Signed in 1945 by Ben Chifley’s Labor government, the agreement provided the framework and federal and state funding for the building and managing of public housing. Chiefly also including the banks.

state housing authorities built almost 100,000 dwellings for public rental — one in every seven dwellings built. The New South Wales Housing Commission built almost 38,000 of those, 18% of all NSW housing built. Returned soldiers, large families and formerly disadvantaged people became tenants.

Coupled with a strong labour market (unemployment over 1955-1956 was) Իthe public housing scheme created entire suburbs of affordable housing and economic opportunity for the working class. It was also an escape route from slums.

Towers of between 20 and 30 stories high were built in Gadigal Country/Sydney and Naarm/Melbourne and, later, in Western Australia. Priority was given to the most disadvantaged.

However, without community support, the towers became notorious for crime and suicides.It was a warning about single-demographic high density that, unfortunately, went unheeded.

At the time the wider economy was also booming; it was a time of low inflation, industrial advance, proportionate wages and free education.However post-war conservatism and a rising middle class sought to use their newfound political influence to increase their personal market share and the public housing program became a victim of its own success.

Neoliberalism

The conservative Robert Menzies government in 1956 was the first to undermine the CSHA,wanting in the public scheme.

Long beforeԻ,Menzies pushed for low income earners to rent in the private market.He subsidised finance for home owners by redirecting 30% of public funds to building societies and state banks.It began the process of privatising public housing and public housing completion rates declined to about 9% of all dwellings.

By 1969, the NSW Housing Commission had sold almost 100,000 dwellings — one third of those it had built.It was the dawn of neoliberalism, where governments encouraged private sector investment and reduced their provision of affordable housing.

The Neville Wran Labor government set up the Land Commission of NSW, in November 1976, in response to residential land shortages and rapid price rises in cities in the late 1960s and 1970s. (In 2002 it became Landcom, an oxymoronic state-owned corporation under the.)Its main purpose was to acquire land forurban development and other public uses to help moderate the housing market, stabilise land supply and “support the development industry”.

Homesite sales were to be made at the “lowest practicable price”. It supported the housing industry as governments escalated public housing sell-offs to developers in what had become high value areas. It also provided a ready cash flow to the state budget.

But there was a fight against these sell-offs. Some NSW trade unions stood up for public housing.The Builders Labourers Federation (BLF) slapped multi-siteon the plans to demolish Sydney public housing from 1971 to 1975, as the government raised rents by up to 300% to force tenants out.The Green Ban was broken in 1974.

The Richmond Report

The, an inquiry into health services for the psychiatrically ill, found the support system for vulnerable tenants was on its knees.It recommended major mental health reform, including 10 years of aggressive de-institutionalisation. An exponential increase in the use of new psychiatric drugs followed. But, due to poor public policy and public housing authorities’ lack of foresight, the Richmond Reportwas .

Large numbers of previously institutionalised peoplesuddenly became more vulnerable due to an underdeveloped, untested and under-resourced community-care model. The mentally ill, unemployed, disabled Ի moved to public housing but none were given sufficient support services. This was a heinous policy failure from which public housing has never recovered.

With Menzies having laid the groundwork, and Labor and the Coalition increasingly supporting neoliberal policies, Prime Minister John Howard and Treasurer Peter Costello introducedin 1999.It was the final nail in the coffin of affordability and equity of access.

To this day, these tax incentives givehuge tax breaks to investment property owners, effectively paying them to keep multiple houses empty.

Tenants’ rights

The cost to public housing tenants has been huge, particularly in NSW where the mismanagement has become a business model. Numerous and otherhave uncovered numerous cases of . Tenants are, for repairs and maintenance. The NSW Ombudsman has also reported in home modifications for the disabled.

Last year, a mother and a domestic violence survivor on the priority wait list by a public housing staffer in return for faster placement.

A public housing tenant in South-Western Sydney told鶹ý thatcrime and assaults in their suburb are now so bad visiting contractors wear chest cameras. “Yet we [vulnerable tenants] have no protection,” they said. When harassment and serious assault by other tenants are unresolved, the department commonly

NSW Labor’s response has been a departmental merge and more outsourcing. NSW Housing became Homes NSW on February 1 last year, merging housing and homelessness services including the NSW Aboriginal Housing Office, Department of Communities and Justice and the NSW Land and Housing Corporation (LAHC).

LAHC owns and maintains social housing properties across NSW, leased to residents by the Department of Communities and Justice. It also leases properties directly to community housing providers. NSW also outsources its maintenance and repair services to private contractors.

Chris Minns’ Labor continues to raze increasingly rare public housing displacing communities. Even Labor’s own data shows including in regional areas. Public and housing waiting lists arenow Իlong.

Mental health support is still woefully inadequate, with a 2023 report showingof collapse.are also swamped.

The destruction of public housing in NSW is all but complete, with it as “as a public asset and ongoing expense that should be privatised if at all possible or alternatively handed over to communityhousing.”

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