4704.0 - The Health and Welfare of Australia's Aboriginal and Torres Strait Islander Peoples, 2005  
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 14/10/2005   
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Indigenous Australians have access to a range of housing assistance programs, but housing costs remain high relative to incomes for many households. Weekly housing costs were highest for home purchasers whose median weekly payment was $174 per week, followed by private renters whose median weekly rent was $140. However, many of these private renters would have received Commonwealth Rent Assistance (CRA). In June 2004 there were 25,102 income units receiving CRA that were identified as Indigenous income units (table 4.6). It is therefore likely that over half of all Indigenous households renting privately are supported by CRA.


Many Indigenous households renting from state or territory housing authorities or Indigenous or mainstream community housing providers pay rents that are related to income (in some cases, subsidised rents), and therefore have lower housing costs than those renting in the private market (although the latter group have additional income support through CRA payments to, in part, offset the higher rents paid). In 2002 the median weekly rent for Indigenous households renting from state or territory housing authorities was $80 per week and for those renting from Indigenous or mainstream community housing organisations it was $61 per week. The lower median rent paid by those in Indigenous community housing is also related to the poor condition of many of the dwellings and their more remote location.


The distribution of weekly housing costs is shown in graph 4.9. Some 44% of home purchasers paid $200 or more per week in mortgage payments. There were 17% of private and other renters who paid $200 or more per week in rent, compared with 2% of households renting from state or territory housing authorities. Over half (54%) of renters of state or territory housing paid between $50 and $99 per week, with 24% paying from $100 to $149 per week. Three-quarters (75%) of renters of Indigenous or community housing paid less than $100 per week in rent.

4.9 Indigenous households paying rent or mortgages, weekly amount paid by tenure type - 2002
Graph: Indigenous households paying rent or mortgages, weekly amount paid by tenure type—2002



Affordability

‘Housing affordability’ relates to the capacity of households to meet housing costs while maintaining the ability to meet other basic costs of living (AHURI 2004). It takes into account the income of households in relation to their housing costs and is generally focused on households with lower incomes. The following data relate to those people living in households in the lowest 40% of equivalised incomes for Australian households and defines those with ‘affordability stress’ as households paying more than 30% of gross household income in housing costs.


Among those who were renting in 2001, 80% of people in Indigenous households and 54% of people in other households were living in households in the lowest 40% of the income distribution as defined above. People renting in Indigenous households with lower incomes were less likely to be experiencing affordability stress (19%) than people renting in other households with lower incomes (43%) (ABS & AIHW 2003). These differences reflect the higher proportions of Indigenous households who live in social housing, where rents are subsidised, as well as the higher proportion living in remote areas where rents are lower. It also includes overcrowded households who have higher total household incomes but live in overcrowded conditions because of a lack of housing options in remote areas, and as a means of reducing housing costs in urban areas. Note also that the comparison of the housing affordability stress has not been adjusted to take account of the CRA income received by some private renters. For comparison with public renters and community housing renters, the CRA income should be deducted from the income and housing costs of these private renters.


Among residents in dwellings that were being purchased, 43% of people in Indigenous households and 29% of people in other households were living in low income households. Within low-income Indigenous households, 34% of people reported paying more than 30% of their income in housing costs, compared with 41% of people in other low-income households (ABS & AIHW 2003).


Financial stress

A significant proportion of Indigenous households experience some form of financial stress. In 2002, 30% of Indigenous households reported days without money in the last two weeks and 43% had days without money in the last 12 months. Nearly one-half of all Indigenous households (49%) reported that they could not raise funds in an emergency (i.e. $2000 within a week) (table 4.10). This compares with 15% of all Australian households who said that they could not raise $2000 within a week (ABS, 2002 GSS).

4.10 Indigenous households and persons experiencing financial stress(a)(b), by tenure type - 2002

Home owner
Renter state or territory housing authority
Renter Indigenous/ mainstream community housing
Private and other renter
Other tenure
Total

Persons

Had days without money in last 12 months %
26.7
61.9
45.6
46.0
*30.1
43.7
Had days without money in last 2 weeks %
18.3
46.2
36.8
29.7
*24.1
31.8
Could not raise $2,000 within a week %
20.2
72.2
79.1
50.8
28.8
54.3
Total %
100.0
100.0
100.0
100.0
100.0
100.0
Total no.
74 800
62 200
67 700
66 600
3 400
282 200

Households

Had days without money in last 12 months %
26.0
59.0
46.4
48.3
35.2
42.7
Had days without money in last 2 weeks %
17.0
44.0
36.5
30.0
23.8
29.8
Could not raise $2,000 within a week %
19.6
71.4
75.7
51.8
44.3
49.4
Total %
100.0
100.0
100.0
100.0
100.0
100.0
Total no.
50 400
37 700
24 500
40 700
12 200
165 700

* estimate has a relative standard error of 25% to 50% and should be used with caution
(a) Persons aged 15 years or over
(b) Information provided by a nominated spokesperson on behalf of all household members.
ABS, 2002 NATSISS
Numbers are rounded to the nearest hundred.



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