Bad tenants rack up $31m bill
Public housing tenants owed the State Government more than $31 million for damage to taxpayer-owned homes and unpaid rent and water bills last year - up from $28 million the year before.
Figures show that while the Department of Housing's income from rent and tenant liability has increased 8.5 per cent since 2012, outstanding debt has grown about 30 per cent.
The Opposition has blamed the $7.25 million increase in money owed over two years on a department decision to no longer collect a rental bond from new tenants from July 1, 2013, unless it is deemed necessary.
Shadow housing minister Fran Logan is calling on the Government to reverse the decision to not charge tenants a security bond and said Labor would reintroduce the requirement.
"Is it any wonder that the damage bill and outstanding debts have skyrocketed over the last two years, when the landlord has removed the only penalty on tenants that stops them from behaving in this way," Mr Logan said.
The department figures, which come after the annual public housing damage bill reached a record $12.7 million last year, show the outstanding debt of tenants was $31,624,153 at June 30, equal to about 14.4 per cent of the $219,182,049 collected in 2014.
The debt figures include rental arrears, tenant liability for damage and rubbish removal, unpaid water bills and vacated debt, which is money owed or charged when a tenant moves.
Department general manager of service delivery Greg Cash said the majority of the 36,600 public housing properties managed by the department were occupied before the change in 2013 so the tenants had paid a bond.
He said the department had been required to lodge bonds with the bond administrator since July 2013.
Mr Cash said the department reserved the right to charge ingoing tenants a security bond when necessary.
"Public housing tenants are low-wage earners and are consequently permitted to make payments in instalments," he said.
"The administration involved in receiving and forwarding fortnightly payments makes charging bonds both costly and cumbersome with minimal benefit."
Acting housing minister Mia Davies said the State Government supported the department's current mechanisms of recouping debt owed to the taxpayer.
