State rents may rise for better-paid tenants

Press, 25 July 1986, Page 3

State rents may rise for better-paid tenants

PA Wellington Tenants of State houses who can afford higher rents will face increases to nearer the going market rate under a new Government formula announced yesterday. Some people could pay $6O a-week more at their next annual rent review, but for most State tenants, on low incomes, the increases will be less than $lO. The Minister of Housing, Mr Goff, said the Government would be "removing taxpayer subsidies” on the rents ,of tenants who no longer needed that assistance.

For those on low incomes, however, “in no case will people be subject to hardship.” A number of changes to the way State rents are calculated have been brought in, including:

• Rents will now be calculated on a couple’s total income, from all sources, rather than on the principal income earner’s and part of the spouse’s.

• The Housing Corporation will add $l5 a week rent for each other income-earner in the house, such as a young adult or boarder. © Maximum rent would be raised from a statutory

"fair” rate based on Government valuation, which is often five years out of date, to a market-related rent

• Tenants on aboveaverage incomes will no longer be liable to annual rent increases limited to $lO a week. Low-income tenants, however, will continue to have rent increases limited.

Mr Goff said a couple’s low income level would be anything below the superannuation leveL At present this is $255.76 a week gross for a married couple.

Mr Goff said the Government was not out to punish State house tenants

who made a few dollars and improved their financial position but when people could pay their own way it would ensure they did. “It would be totally unfair to people in private accommodation if we continued to subsidise the living expenses of families on good incomes simply because, when they were less well off, they were given a State house and had stayed put,” he said.

Mr Goff said the extra revenue earned would be used to help those in genuine need, maintain existing properties and build new ones.