Homelessness funding at risk amid state and territory government dispute, services say

Homelessness services and women’s shelters fear they will have no choice but to cut frontline staff at a time of surging demand, as state and territory governments remain locked in a dispute with the federal government over who should fund wages in the sector. 

Homelessness organisations have issued a last-ditch plea ahead of the federal Budget on May 11, urging the Morrison government to extend a funding agreement with states beyond July 1.

Those calls are being echoed by the New South Wales and Victorian governments, who despite being from different sides of the political aisle are united in pressuring the federal government to extend funding.

Homelessness Australia chair Jenny Smith said 500, predominantly female jobs, were on the line with the sector set to lose $56 million a year.

“We are already swamped,” Ms Smith said.

“We are looking to the federal government with great trepidation.”

The Coalition and Labor state governments in New South Wales and Victoria have also joined forces to lobby the Morrison government to maintain the current funding arrangements.

In a sternly worded joint letter sent to the federal government last month, Australia’s two most populous states warned homelessness organisations faced “uncertainty, job losses and cuts to services”.

“The Commonwealth cannot simply walk away from its responsibility to homelessness services funded in partnership with the states and territories,” it said.

The letter was signed by Victorian Housing Minister Richard Wynne and NSW Families and Communities Minister Gareth Ward and sent to the Federal Social Services Minister Anne Ruston.

At the heart of the dispute is whether the Commonwealth will stop contributing to increased staffing costs prompted by a 2012 Fair Work Commission decision to improve community sector wages.

In the last decade, both the Commonwealth and states have chipped in to ensure workers in a range of community services, including homelessness, are paid in line with the Equal Remuneration Order (ERO), which addressed gender pay inequity in the female-dominated workforce. 

But federal funding for homelessness services has not been guaranteed beyond the end of this financial year. 

Mr Ward said NSW was committed to contributing its share to the “longstanding agreement”. 

“I’ve repeatedly sought the same commitment from the Commonwealth, both directly and jointly with other states,” he said in a statement.

“The Commonwealth has not yet made a decision, but we remain hopeful of a positive resolution in the interests of homelessness services and their vital work in support of our most vulnerable.”

His Victorian counterpart said the looming decision was “baffling”.

“This federal decision to withdraw this funding will remove more than $20 million in vital resources for Victorian service providers, costing more than 100 jobs and the loss of vital support for around 6,700 people at risk of homelessness,” Mr Wynne said in a statement. 

“We’ve raised this issue with the Commonwealth time and time again, yet homelessness services, their workers and the people who rely on them, are still facing uncertainty.”

Senator Ruston argued state and territory governments were responsible for homelessness services.

“The Commonwealth takes its commitment to equal pay extremely seriously and as such at the last Budget we increased base funding by $132 million for frontline services we have responsibility for, such as social workers, disability advocates and financial counsellors,” she said.

“I welcome the commitment of states such as WA in ensuring the frontline services they fund have the resources they need to meet the requirements of the ERO decision.”

Senator Ruston rejected accusations that funding for housing and homelessness had been “cut” as “completely false” and said the Commonwealth is providing $1.6 billion to states and territories each year under the National Housing and Homelessness Agreement. 

Western Sydney not for profit DV West provides crisis accommodation for women and children escaping domestic and family violence.

Last year the organisation, which operates five discreet refuges, turned away more than 1,200 women and children.

Danae Amies manages the organisation’s Blacktown service and said a position may need to be axed.

“It’s already nerve-wracking that we can’t actually assist all the women that already need help,” she said.

“Cutting the funding and a worker potentially losing a job then puts extra strain on the service, and it will then mean that we’re turning away more women.”

Shadow Assistant Minister for the prevention of family violence Jenny Mcallister said the government was refusing to commit “to continue to pay its fair share of the wages” in the sector. 

“My fear is that the Minister won’t conclude these negotiations, won’t commit, and up to 500 jobs across Australia could be lost in this vital sector,” she said.

The Queensland and the Northern Territory governments have also written to the Commonwealth asking for funding to be extended, while ACT and Tasmania have said they will fund the shortfall from any federal decision.