The Productivity Commission this year recommended that the federal government increase Commonwealth Rent Assistance payments by about 15 per cent to reflect increased rental asking prices.

It also suggested that the system, whereby a public housing tenant’s rent was worked out based on a proportion of their income, be replaced.

In its response to the draft report on the nation’s human services portfolio, the Tasmania Government said this proposal would require significant changes to the state’s rent-setting structure but appreciated that any chance would come with a grandfathering clause.

It did, however, express support for increased rental assistance payments.

Under the scheme, an eligible single person could receive $133 per fortnight in assistance, if renting alone, and a person with a partner and up to two children could receive $78.40 a fortnight.

The government noted that one-third of CRA recipients in Tasmania expressed housing stress and an increase of the payment would decrease demand for public housing.

“The proposed increase in the CRA should mean increased housing affordability for people on low incomes,” it said. 

“Tasmania has concerns, however, about the likely inflationary impact of housing subsidies on market rents, and the risk ... that the ameliorative impact of subsidies could be eroded overtime.”

The Productivity Commission also recommended that state and territory governments publish expected waiting times for public housing by region to better inform prospective tenants.

This is being considered by Housing Tasmania which plans to provide more information on each suburb’s public housing stock levels and turnover rates.

Performance data released by the state’s Human Services Department in March showed that 3821 people were on the public housing waiting list.

This was an increase of almost 1000 people over two years.

The most recent Census results revealed that less Tasmanians owned their own home since the last survey and more people were renting.