4/3/02
The State Government's decision to increase private rental bond assistance loans would help low income earners better afford the cost of renting privately, Housing and Works Minister Tom Stephens said today.
Mr Stephens said bond assistance would increase for the first time since 1991 to accommodate current median market rents.
He said this increase was also part of the Government's response to addressing some of the homelessness issues confronting low-income people.
The Minister said the Government believed that the interest-free loans were an important alternative housing option to help people on low incomes gain access to the private rental market.
The Department of Housing and Works' scheme provided the loans to eligible applicants for the security deposit required by real estate agents and private landlords.
"The scheme provided about 14,300 bond loans with an average value of $335 in 2000-2001," Mr Stephens said.
"The Bond Assistance budget will now increase by $1.2million to $6million, based on the same number of expected loan applicants.
"The loan scheme was introduced in October, 1984 and since that time over 190,000 people have been granted bond loans to the value of about $60million."
Mr Stephens said the maximum bond loan was four times the weekly rent or the department's scheduled maximum - whichever was less.
He said current levels ranged from $320 for a single applicant up to $620 for a family with four children. This had increased from March 1 up to $400 for a single person and up to $740 for a family with four children.
Fortnightly repayments would be $15 per fortnight for new bond loans. Many tenancies were for durations of six to 12 months and it was important to encourage clients to repay their loans within a reasonable period of time.
Mr Stephens said temporary visa cardholders could access Bond Assistance.
Minister's office: 9213 6500
