Renters face water wipe-out
DAMIEN BROWN
May 22, 2009 08:00am
RENTERS could be slugged up to $2000 more a year as the controversial water and sewerage reforms start to flow.
Renters will be billed for the services from 2010-11 - a move that will collect more than $23 million based on 10 per cent of the state's homes being rented.
From July 1, local councils will no longer charge residents for water and sewerage as part of annual household rates notices.
Instead, the collection of the funds will be done through three new regional water corporations.
Water and sewerage will be charged on a separate bill, similar to electricity.
The State Government pursued the reform because water infrastructure was not up to scratch and will cost more than $1 billion over 10 years to fix.
Water and sewerage charges will be paid by landlords in the 2009-10 financial year but after that renters will be slapped with the expense.
Social service agencies hoped landlords would drop rent to reflect water and sewerage no longer being included in rates but that is unlikely with Hobart and Glenorchy already admitting they will be unable to pass on the full savings in cheaper rates.
A review into bank balances of Tasmania's local councils this week showed almost two-thirds were economically unsustainable.
With many renters already skipping meals or not buying essential items such as medication simply to pay rent, Anglicare housing officer Kathleen Flanagan said the hardship would increase.
She said the new charges for water and sewerage would also affect the state's 11,500 Housing Tasmania residents as well as university students.
She said the $130 concession on offer to offset the new charges would do little to help. About 80,000 Tasmanians are expected to be eligible for the concession rebate.
The 2006 Census found 38.2 per cent of Tasmanian renters, or 11,113 households, were in housing stress - that is, paying more than 30 per cent of household income on rent.
"That is why we are calling on the State Government to ensure that they consider lifting the level of concessions for those who will really be doing it tough with these extra expenses," Ms Flanagan said.
Tasmanian Council of Social Service CEO Tom Muller said there was growing concern among tenants the likelihood of being homeless in tough economic times was a reality.
"To be increasing expenses for renters at a time of historically low levels of low-income housing availability is going to push people to the wall," Mr Muller said.
Tasmanian Greens infrastructure spokesman Tim Morris said the post-2010 billing arrangement was unfair and inequitable and meant landlords and property investors would be big winners at the expense of struggling renters.
The Greens unsuccessfully attempted yesterday to have the services legislation modified to include conditions to protect renters and low-income earners.
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