The Australian Democrats believe that savings gained from the paring back of the first homebuyers scheme should go into public, community and supported accommodation for those excluded by poverty from the housing market.
Leader of the Australian Democrats, Senator Andrew Bartlett, said such a measure could be one step in a program to address the desperate shortfall of housing for those on a low income.
"Everybody is aware of the massive increase in the cost of buying a home in most parts of Australia," Senator Bartlett said.
"Increases as high as 120% in some parts of capital cities over the last five years have made home ownership impossible for a large section of the population.
"This means more people need to access the private rental market and public or community housing. Yet the availability of public housing has dropped dramatically, leaving the private rental sector picking up the slack.
"Renting in the private market is not the answer for the majority of low income earners. Increases in housing costs has caused an increase in private rent yet household income has not increased at a similar rate, leaving people in a desperate position.
"Figures released by ACOSS show that over 90,000 low income Australians in the private rental market are paying more than 50% of their income in rent.
"We cannot rely solely on the market to do the Government's job of ensuring there is an adequate amount of affordable and secure housing. The Government must look at ways of making private investment in the housing sector more affordable."
Senator Bartlett said the provision of a rental subsidy from the Federal Government has not adequately met the needs of low income earners paying high rents.
"The subsidy is not even available to everyone who receives benefits. It is provided at different rates and not available to students over 25 years of age on Austudy.
"A rescue package is needed immediately to address the 70-year backlog of people waiting for housing," concluded Senator Bartlett.
Senator Bartlett called on the Federal Government to recognise and address this crisis by making improved funding commitments and provide realistic solutions at this Friday's meeting of state and territory housing ministers.
Senator Bartlett will host a press conference with ACOSS and housing groups about the crisis in affordable housing, at 1.30pm in 2S1.
