In the twilight of the financial year, the Northern Territory government scrapped $69.7 million dollars worth of back rent it claimed was owed by mostly Aborginal people living in public housing in remote communities.
The decision was never made public, and only came to light during a recent NT Civil and Administrative Tribunal (NTCAT) hearing where lawyers for the Northern Territory Government revealed NT Treasurer Eva Lawler had used her ministerial powers to write off the debt.
The court action was part of a five-year campaign by residents of Ltyentye Apurte or Santa Teresa and Laramba over the state of housing in their Central Australian communities.
“That money really should have been going back into the remote housing system to assist with repairs and maintenance and bring housing up to a reasonable and comfortable standard," said Australian Lawyers for Remote Aboriginal Rights solicitor Dan Kelly.
"So the fact it's missing from that system is a tragedy but the fact the government has bitten the bullet and written that money off is a good move.”
The territory government has refused to confirm the dollar figure and apart from a brief mention in estimates hearings in May has never publicly announced plans to scrap millions in outstanding debt for remote renters.
Australian Lawyers for Remote Aboriginal Rights solicitor Dan Kelly says it was a rental system in disarray. Source: Supplied
Despite the public silence, the government said it has privately told renters that they would not have to pay, as it tries to encourage renters to embrace a new rental plan — the only official government statement confirming the deal was by the department of Territory, Families Housing and Communities (TFHC).
“Any historic rental debt up to December 11, 2021, would not be pursued.”
Why the silence?
It's believed the government was loath to reveal publicly the $70 million dollar hit to its bottom line, or admit that the rental system it’s been using to collect and control rents in the territory’s 72 remote communities was never fit for purpose or adequately managed.
The department (TFHC) seemed to admit as much in a statement, describing its own remote rental scheme as “an antiquated system that was ineffective, confusing for tenants and challenging to administer.”
Solicitor Daniel Kelly said the Territory government got into trouble when it tried to counter-sue in 2019 for rents in Santa Teresa it claimed were worth an alleged $2 million dollars.
The Tribunal dismissed the counterclaim after the government was unable to provide any credible evidence for how the alleged rental debts were calculated.
This latest development sealed the fate of a 'broken' system that advocates say was well past its use-by date.
“I think this was ultimately inevitable, I think the system was in disarray and the amounts were just not recoverable in a practical sense from people who don’t have money," said Mr Kelly.
“When the system had run away from itself it needed to be brought back and I think this was the inevitable outcome tragic as it that the money has been lost to the system."
Lawyers for the Remote Australians Alliance have also released FOI documents claiming the NT government spent $800 thousand dollars in legal costs defending its case.
New scheme - worse off?
The Territory government has been working on a new rental framework for remote communities since 2018.
And like the scrapping of the $70 million rent debt, the new Remote Rent Framework was quietly enacted using a ministerial determination gazetted in January this year by the then minister for housing Kate Worden.
Its start date has been delayed a number of times but the government now insists it will begin on September 5.
Aboriginal organisations are worried about the new regime and have written to the new housing minister Selena Uibo to delay its introduction.
Skye Thompson from the Aboriginal Housing Association of the Northern Territory told NITV News, "we are asking Minister Uibo to put a halt on the implementation of September 5 to be able to have that community consultation, to allow Aboriginal community controlled organisations to have their input into what the rental reform should look like".
Ms Thompson said the new scheme has been mostly developed by department bureaucrats with little consultation with Aboriginal groups since 2018/2019.
Skye Thompson Aboriginal Housing Association of the NT said, 'We need them to consult with us' Source: Supplied
According to the government’s own data almost 70 per cent of remote renters will be worse off under the new rental scheme with rent hikes affecting more than 3,000 homes and 15,000 people.
Ms Thompson said it’s an increase that the territory’s poorest communities can’t afford.
She has also questioned whether new rental debts have accrued during the eight months between the end of the old scheme and the start of the new scheme.
"It will be extra stress on people, from what we see there will be 68 per cent of households that may have their rent increased, so on top of that increase in rent, there will also be a debt that needs to be addressed".
In a statement, Territory Familied Housing and Communities said “although about 68 per cent of households are expected to see an increase in rent under remote rent reform; it is important to note the last rent increase for remote public housing tenants was more than a decade ago.”
Under the new scheme, “the cost of rent will be capped at $70 a week, per bedroom, to a maximum of $280 a week.
The need to pay a security bond will be scrapped but so will the current rebate scheme, this will be replaced with a safety net that provides financial assistance for anyone paying more than 25 per cent of their income on rent.
But the safety net will only be applied on a short-term, case-by-case basis.
In a statement, the department insists it has visited dozens of communities and will continue “to deliver a comprehensive community engagement program across the Northern Territory to ensure that people are aware of the change and are supported to meet their obligations to pay rent.”
“Work is underway to develop in-language resources to complement the engagement activities to ensure tenants understand these changes.”
