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CHAPTER 2 - A PROFILE OF ABORIGINAL AND TORRES STRAIT ISLANDER HOUSING ORGANISATIONS


INTRODUCTION

This chapter presents the main characteristics of the IHOs identified in the 2006 CHINS. It includes summary information on the number and type of IHOs in Australia, the characteristics and condition of permanent dwellings managed by these IHOs, as well as summary information on dwelling management and IHO income and expenditure.

INDIGENOUS HOUSING ORGANISATION CHARACTERISTICS

The 2006 CHINS collected information from 496 IHOs, a decrease of 120 (19%) from 616 IHOs in the 2001 survey. While the number of IHOs decreased, the total number of permanent dwellings managed by IHOs increased by 567 (3%) from 21,287 permanent dwellings in 2001 to 21,854 permanent dwellings in 2006. Fewer IHOs are delivering services to a wider area incorporating more localities and permanent dwellings.

In 2006, non-remote IHOs accounted for 47 per cent of all IHOs and managed 32 per cent of total IHO managed housing stock; very remote IHOs accounted for 42 per cent of all IHOs and managed 57 per cent of IHO managed housing stock; and remote IHOs accounted for 11 per cent of all IHOs and 11 per cent of total IHO managed housing stock.

Over the period 2001 to 2006, the number of IHO managed permanent dwellings decreased in remote areas, but increased in non-remote and very remote areas. The number of non-remote IHOs decreased by 55 (19%), down from 287 in 2001 to 232 in 2006. The total number of permanent dwellings managed by non-remote IHOs increased by 711 (11%) from 6,295 permanent dwellings to 7,006 permanent dwellings. The number of remote IHOs decreased by 16 (23%) from 71 to 55, and the number of permanent dwellings managed by remote IHOs also decreased, down 217 (8%) from 2,658 permanent dwellings in 2001 to 2,441 in 2006. Very remote IHOs decreased by 49 (19%), down from 258 in 2001 to 209 in 2006. The number of permanent dwellings managed by very remote IHOs increased slightly by 73 (1%) from 12,334 in 2001 to 12,407 in 2006.

2.1 Permanent dwellings managed by Indigenous Housing Organisations, by Remoteness Area - 2001 and 2006
		2001		2006
		All IHOs(a)	All IHO managed permanent dwellings	All IHOs(a)	All IHO managed permanent dwellings
		no.	no.	no.	no.
Remoteness Area
	Major cities	43	818	37	777
	Inner regional	92	1 828	82	2233
	Outer regional	152	3 649	113	3 996
	Remote	71	2 658	55	2 441
	Very remote	258	12 334	209	12 407
Australia		616	21 287	496	21 854
(a) Includes IHOs with no permanent dwellings.

Almost two thirds of all non-remote IHOs were located in New South Wales (64%) followed by Queensland and Victoria, 17 per cent and 9 per cent respectively. The highest proportion of remote IHOs were located in Western Australia (33%), Northern Territory (24%), New South Wales (20%) and Queensland (18%). The highest proportion of very remote IHOs were located in Western Australia (33%), Northern Territory (32%) and Queensland (20%).

Decreases in the number of IHOs were recorded in all States and Territories, except South Australia which saw an increase from 31 IHOs to 37, and Tasmania which remained unchanged at 3 IHOs. The number of IHOs decreased by 36 (18%) in New South Wales, 33 (26%) in Western Australia, 29 (26%) in Northern Territory, and 25 (22%) in Queensland.

The largest increases in IHO permanent dwellings managed were recorded in Queensland and Western Australia, up 557 (10%) and 189 (6%) respectively. The Northern Territory recorded the largest decrease in permanent dwellings managed, down by 267 (4%) from 6,715 in 2001 to 6,448 in 2006.

2.2 Permanent dwellings managed by Indigenous Housing Organisations, by State or Territory - by Remoteness Area - 2001 and 2006
		2001 Remoteness Area of IHO					2006 Remoteness Area of IHO
		Non-remote IHOs	Remote IHOs	Very remote IHOs	All IHOs(a)	All IHO managed permanent dwellings	Non-remote IHOs	Remote IHOs	Very remote IHOs	All IHOs(a)	All IHO managed permanent dwellings
		no.	no.	no.	no.	no.	no.	no.	no.	no.	no.
State or Territory
	New South Wales(b)	172	19	14	205	4 088	149	11	9	169	4 176
	Victoria	25	-	-	25	416	22	-	-	22	469
	Queensland	56	13	47	116	5 673	40	10	41	91	6 230
	South Australia	8	2	21	31	1 004	12	3	22	37	935
	Western Australia	18	18	89	125	3 273	6	18	68	92	3 462
	Tasmania	1	-	2	3	118	1	-	2	3	134
	Northern Territory	7	19	85	111	6 715	2	13	67	82	6 448
Australia		287	71	258	616	21 287	232	55	209	496	21 854
- nil or rounded to zero (including null cells)
(a) Includes IHOs with no permanent dwellings.
(b) Includes Australian Capital Territory.

The emerging trend of fewer IHOs managing more permanent dwellings is illustrated by Table 2.3.

Around a quarter of IHOs managed 50 or more permanent dwellings in 2006 compared with 19 per cent in 2001. The number of IHOs managing 20 to 49 permanent dwellings decreased by 39 (19%) IHOs from 207 in 2001 to 168 in 2006.

In 2006, a total of 199 (40%) IHOs managed less than 20 permanent dwellings each, compared with 293 (48%) in 2001. The number of IHOs managing less than 20 permanent dwellings in Western Australia decreased by 33 (46%) from 71 IHOs in 2001 to 38 IHOs in 2006. New South Wales IHOs decreased by 32 (25%) for the same period.

The Northern Territory also reported decreases in the number of IHOs managing more than 50 permanent dwellings, indicating the merging of a number of larger IHOs since the 2001 survey. In 2006, a total of 50 IHOs managed 100 or more permanent dwellings of which almost half (24 IHOs) were located in the Northern Territory. Queensland reported the next highest number of IHOs managing 100 or more permanent dwellings at 17 IHOs.

2.3 Permanent dwellings managed by Indigenous Housing Organisations, by State or Territory - 2001 and 2006
		Less than 20 permanent dwellings		20-49 permanent dwellings		50-99 permanent dwellings		100 or more permanent dwellings		Total IHOs
		2001	2006	2001	2006	2001	2006	2001	2006	2001	2006
		no.	no.	no.	no.	no.	no.	no.	no.	no.	no.
State or Territory
	New South Wales(a)	130	98	66	59	8	10	1	2	205	169
	Victoria	16	12	9	8	-	2	-	-	25	22
	Queensland	34	15	53	39	15	20	14	17	116	91
	South Australia	21	27	5	6	4	3	1	1	31	37
	Western Australia	71	37	36	30	15	19	3	6	125	92
	Tasmania	1	-	1	2	1	1	-	-	3	3
	Northern Territory	20	8	37	25	37	25	17	24	111	82
Australia		293	197	207	169	80	80	36	50	616	496
- nil or rounded to zero (including null cells)
(a) Includes Australian Capital Territory.

INDIGENOUS HOUSING ORGANISATION INCOME AND EXPENDITURE

Detailed financial data were collected for the first time in 2006, though on a voluntary basis. The financial reference period is 2004-05. Care should be taken when analysing income and expenditure data as no adjustments were made to data to account for any under reporting.

To assist users in analysing financial data, the relevant tables include counts of the number of IHOs where income and expenditure were 'not stated' and the proportion of total IHOs that did not report data for these items. For more details on using the CHINS financial data, including a discussion of data quality, refer to paragraphs 23 to 30 of the Explanatory Notes.

Income

In 2006, 401 (81%) IHOs reported income data totalling $141.9 million. Grants accounted for the largest income source with $83.4 million (59%) followed by rental income at $47.5 million (33%).

Very remote IHOs reported a total income of $65.1 million which was 46 per cent of total IHO reported income. Around two thirds of very remote IHO income was sourced from grants at $41.4 million (64%). Rental income accounted for the majority of the remaining income at $21.0 million (32%).

Non-remote IHOs reported a total income of $56.2 million which represented 40 per cent of total IHO reported income. Over half of non-remote IHO income was sourced from grants at $30.6 million (54%), while rental income contributed $21.3 million (38%). Remote IHOs reported a total income of $20.6 million which was 14 per cent of total IHO reported income. Income from grants at $11.5 million accounted for more than half (56%) of remote IHO income, followed by rental income at $5.3 million (26%).

2.4 Source of Income of Indigenous Housing Organisations(a)(b), by Remoteness Area - 2006
		Non-remote IHOs	Remote IHOs	Very remote IHOs	All IHOs
Income ($'000)
Source of income
	Rent	21 279	5 269	20 999	47 546
	Housing grants	30 552	11 471	41 407	83 430
	Business enterprises	2 065	1 895	956	4 916
	Royalties	236	-	10	246
	Property sales(c)	1 141	-	-	1 141
	Other income sources	952	1 933	1 766	4 651
	Total source of income(d)	56 225	20 568	65 138	141 931
Number of IHOs (no.)
All IHOs(e)		232	55	209	496
IHOs with total income not stated		43	11	41	95
Proportion (%)
IHOs with income sources not stated		19	20	20	19
- nil or rounded to zero (including null cells)
(a) For the financial year 2004-05.
(b) Includes discrete community IHOs with no permanent dwellings.
(c) Data collected in town localities only.
(d) Components may not add to totals due to rounding.
(e) Includes IHOs where income not stated.

Rental income

Financial data in the 2006 CHINS are valued on a current price basis, that is values are presented as stated by the IHO key informant at the time data were collected. When comparing the 2001 data with 2006 results, no attempt has been made to adjust IHO income and expenditure data to present data on a constant price basis. As a result, care should be taken when making these comparisons. Refer to paragraphs 25 to 30 in the Explanatory Notes for further details.

The total rental income reported by IHOs for the financial year 2004-05 was $47.5 million, compared to $42.1 million in the 2001 survey. The average weekly rent received for all IHO managed permanent dwellings was $42, compared to the $38 reported in 2001.

Table 2.5 shows that in 2006, over 80 per cent of very remote IHOs reported an average rental income per dwelling of below $50, and almost two thirds of non-remote IHOs reported an average rental income per dwelling $50 or more.

Non-remote IHO average weekly rent was 27 per cent higher than in 2001, at $71 compared to $56. Remote IHO average weekly rent was 38 per cent higher, at $47 in 2006 compared to $34 in 2001. Very remote IHO average weekly rent was 23 per cent higher over the period, at $37 compared to $30 in 2001.

2.5 Average weekly rent per permanent dwelling managed by Indigenous Housing Organisations(a)(b)(c), by Remoteness Area - 2001 and 2006
		Non-remote IHOs		Remote IHOs		Very remote IHOs		All IHOs
		2001	2006	2001	2006	2001	2006	2001	2006
Number of IHOs (no.)
Average weekly rent
	$0	7	45	6	12	18	44	31	101
	$1-$24	45	11	14	7	118	51	177	69
	$25-$49	71	31	26	12	82	78	179	121
	$50-$74	90	46	13	13	22	26	125	85
	$75-$99	48	56	8	5	11	6	67	67
	$100 or more	26	43	4	6	7	4	37	53
	All IHOs	287	232	71	55	258	209	616	496
Average weekly rent ($)
Average weekly rent		56	71	34	47	30	37	38	48
(a) Includes discrete Indigenous community IHOs with no permanent dwellings.
(b) Financial data are reported in current prices. Refer to Explanatory Notes paragraphs 25 to 30 for further details.
(c) Data for 2001 was reported on a financial year 1999-2000 and calendar year January to December 2000 basis. Data for 2006 was reported for the financial year 2004-05. Refer to Explanatory Notes paragraph 30 for further details.

Expenditure

A total of 390 (79%) IHOs reported total expenditure data of $128.6 million. Other expenditure accounted for the largest proportion at $38.0 million (30%) followed by repairs and maintenance of $37.4 million (29%), salaries of $21.7 million (17%), and administration costs of $14.1 million (11%).

Very remote IHOs reported a total expenditure of $60.1 million and accounted for 47 per cent of total IHO reported expenditure. Repairs and maintenance accounted for the largest proportion of very remote IHO expenditure at $21.9 million (36%), followed by other expenditure of $15.9 million (26%) and salaries of $11.6 million (19%).

Non-remote IHOs reported a total expenditure of $49.7 million of which other expenditure was $12.9 million, followed by repairs and maintenance at $11.9 million, administration costs $9.5 million and salaries $7.7 million. Remote IHOs reported a total expenditure of $18.8 million of which almost half was other expenditure $9.3 million.

Other expenditure consists primarily of upgrades and capital expenditure, though care should be taken in interpreting these data as some respondents reported upgrade expenditure under repairs and maintenance expenditure. Salary expenditure may also include payments to contractors for upgrades as well as contract payments for repair and maintenance work.

Care should be also taken when comparing land rates and administration costs across non-remote, remote and very remote IHOs. In many remote and very remote IHOs, land rates and administration costs are not always recorded against housing operations and may be considered as part of the costs of the larger governing Community Council or Aboriginal Corporation.

2.6 Types of expenditure stated by Indigenous Housing Organisations(a)(b), by Remoteness Area - 2006
		Non-remote IHOs	Remote IHOs	Very remote IHOs	All IHOs
Expenditure ($'000)
Type of expenditure
	Salaries	7 727	2 371	11 608	21 706
	Staff training	121	92	170	382
	Repairs and maintenance	11 859	3 685	21 857	37 401
	Land rates	4 627	580	997	6 204
	Insurance	2 159	1 105	6 420	9 684
	Administration costs	9 545	1 592	2 953	14 090
	Management fees	846	104	187	1 137
	Other expenditure	12 861	9 268	15 912	38 041
Total expenditure(c)		49 745	18 796	60 103	128 644
Number of IHOs (no.)
All IHOs(d)		232	55	209	496
IHOs with total expenditure not stated		50	13	43	106
Proportion (%)
IHOs with total expenditure not stated		22	24	21	21
(a) For the financial year 2004-05.
(b) Includes discrete community IHOs with no permanent dwellings.
(c) Components may not add to totals due to rounding.
(d) Includes IHOs where expenditure not stated.

Housing repairs and maintenance expenditure

The total repairs and maintenance expenditure reported by IHOs in the financial year prior to the 2006 CHINS was $37.4 million, compared to $39.6 million in the 2001 survey. The average repairs and maintenance expenditure for each IHO managed permanent dwelling was $2,060, which was 10 per cent more than reported in the 2001 CHINS.

Around 42 per cent of IHOs reported their total repairs and maintenance expenditure as being $50,000 or more and 41 per cent reported their total repairs and maintenance expenditure as being below $25,000.

2.7 Repairs or maintenance expenditure (a)(b)(c), by permanent dwellings managed by Indigenous Housing Organisations - 2001 and 2006
		Less than 20 permanent dwellings		20-49 permanent dwellings		50-99 permanent dwellings		100 or more permanent dwellings		Total IHOs
		2001	2006	2001	2006	2001	2006	2001	2006	2001	2006
		no.	no.	no.	no.	no.	no.	no.	no.	no.	no.
Maintenance expenditure
	$1-$24,999	187	102	70	47	6	5	2	1	265	155
	$25,000-$49,999	45	24	52	25	12	13	1	3	110	65
	$50,000-$99,999	11	10	45	34	21	18	2	2	79	64
	$100,000 or more	6	3	33	28	38	30	30	37	107	98
	Total IHOs with repairs and maintenance expenditure stated	249	139	200	134	77	66	35	43	561	382
IHOs with no repairs or maintenance expenditure stated		44	58	7	35	3	14	1	7	55	114
All IHOs		293	197	207	169	80	80	36	50	616	496
(a) Includes discrete community IHOs with no permanent dwellings.
(b) Financial data are reported in current prices. Refer to Explanatory Notes paragraphs 25 to 30 for further details.
(c) Data for 2001 was reported on a financial year 1999-2000 and calendar year January to December 2000 basis. Data for 2006 was reported for the financial year 2004-05. Refer to Explanatory Notes paragraph 30 for further details.

Permanent dwellings

Almost all IHO managed permanent dwellings were separate houses (91%) and around three quarters of all permanent dwellings had three or four bedrooms.

In the 12 months prior to being surveyed, permanent dwelling acquisitions exceeded dwelling disposals. A total of 670 acquisitions were reported, of which 516 (77%) were newly built and 154 (23%) were purchased dwellings. A total of 490 permanent dwellings were disposed of. Almost all disposals (95%) were the result of permanent dwellings being written-off or demolished. A total of 25 dwellings were sold, nearly half of these (48%) were sold to former tenants.

Permanent dwelling occupancy

A total of 1,447 IHO managed permanent dwellings were unoccupied. The majority of unoccupied dwellings were located in very remote areas (68%), with the next largest proportion in non remote areas (22%). Uninhabitable dwellings or dwellings being repaired accounted for almost half the unoccupied dwellings (48%). Other reasons given were that it was the wet season (12%), and that the dwelling was between tenants or unoccupied for cultural reasons (each 11%).

2.8 Selected characteristics of permanent dwellings managed by Indigenous Housing Organisations, by Remoteness Area - 2001 and 2006
			Non-remote IHOs		Remote IHOs		Very remote IHOs		All IHOs
			2001	2006	2001	2006	2001	2006	2001	2006
			no.	no.	no.	no.	no.	no.	no.	no.
Number of IHO managed permanent dwellings (no.)
Total permanent dwellings(a)			6 295	7 006	2 658	2 441	12 334	12 407	21 287	21 854
Dwelling structure
	Separate house		5 321	6 048	2 253	2 202	11 553	11 699	19 127	19 949
	Semi-detached, row or terrace house		149	692	56	126	133	414	338	1 232
	Flat, unit or apartment		749	237	167	106	563	195	1 479	538
	House or flat attached to a shop or office		2	29	-	7	13	99	15	135
	Total		6 221	7 006	2 476	2 441	12 262	12 407	20 959	21 854
Number of bedrooms
	One		291	211	193	269	628	786	1 112	1 266
	Two		913	1 017	445	467	2 196	2 026	3 554	3 510
	Three		3 572	3 818	1 468	1 297	7 220	7 336	12 260	12 451
	Four		1 346	1 665	318	365	1 588	1 999	3 252	4 029
	Five or more		173	293	52	43	191	227	416	563
	Total		6 295	7 004	2 476	2 441	11 823	12 374	20 594	21 819
Acquisitions and disposals(b)
	Total acquisitions		na	225	na	61	na	384	na	670
	Built		na	118	na	37	na	361	na	516
	Purchased(c)		na	107	na	24	na	23	na	154
	Total disposals		na	120	na	89	na	281	na	490
	Written off or demolished		na	97	na	89	na	279	na	465
	Sold(c)		na	23	na	-	na	2	na	25
	Sold to former tenants		na	12	na	-	na	-	na	12
Unoccupied dwellings(d)
	Total permanent dwellings unoccupied		402	325	144	139	1 123	983	1 669	1 447
	Reason due to:
		Being between tenants	113	71	18	15	118	80	249	166
		Cultural reasons	15	2	10	25	169	130	194	157
		Uninhabitable	124	93	58	51	229	327	411	471
		Wet season	44	1	4	16	230	160	278	177
		Being repaired	91	136	33	15	80	71	204	222
		Water equipment failure	1	-	10	3	44	11	55	14
		Tenant being away	-	3	-	2	49	52	49	57
		Lack of facilities and services	-	-	-	4	43	65	43	69
		Lack of transport and road access	-	-	-	-	43	26	43	26
		Awaiting approval or certification	na	8	na	-	na	8	na	16
		Other	14	11	11	8	118	53	143	72
Proportion of IHO managed permanent dwellings (%)
Permanent dwellings unoccupied(d)			6	5	5	6	9	8	8	7
- nil or rounded to zero (including null cells)
na not available
(a) Includes dwelling structure not stated.
(b) In the 12 months prior to being surveyed.
(c) Data collected in town localities only.
(d) Unoccupied 2 weeks or more.

Permanent dwelling condition

In the 2006 CHINS, 69 per cent of IHO managed permanent dwellings were reported as needing minor or no repair, 23 per cent in need of major repair and 7 per cent in need of replacement. The proportion in need of major repair has increased since 2001 where 19 per cent of dwellings were reported as needing major repair.

In the 2006 survey, permanent dwellings managed by IHOs in remote areas were more in need of major repairs and replacement (36%) than dwellings managed by IHOs in very remote (30%) and non-remote (29%) areas.

2.9 Condition of permanent dwellings managed by Indigenous Housing Organisations, by Remoteness Area - 2001 and 2006
		Non-remote IHOs		Remote IHOs		Very remote IHOs		All IHOs
		2001	2006	2001	2006	2001	2006	2001	2006
Proportion of IHO managed permanent dwellings (%)
Dwelling condition
	Minor or no repairs	77	72	65	64	68	69	70	69
	Major repairs	18	24	26	26	18	22	19	23
	Replacement	5	4	9	10	10	8	8	7
	Not stated	-	-	-	-	4	-	2	-
	Total(a)	100	100	100	100	100	100	100	100
Number of IHO managed permanent dwellings (no.)
All IHO managed permanent dwellings		6 295	7 006	2 658	2 441	12 334	12 407	21 287	21 854
- nil or rounded to zero (including null cells)
(a) Components may not add to totals due to rounding.

In 2006, around 70 per cent of permanent dwellings in need of major repairs or replacement reported an average weekly rent of less than $50. A total of 2,922 (13%) permanent dwellings reported $0 rent.

2.10 Average weekly rent range per permanent dwelling managed by Indigenous Housing Organisations(a), by condition - 2001 and 2006
		Minor or no repairs		Major repairs		Replacement		Total
		2001	2006	2001	2006	2001	2006	2001	2006
		no.	no.	no.	no.	no.	no.	no.	no.
Average weekly rent
	$0	280	1 980	85	771	55	171	485	2 922
	$1-$24	4 512	3 075	1 759	1 191	683	402	6 954	4 668
	$25-$49	5 710	4 821	1 111	1 577	683	626	7 711	7 024
	$50-$74	2 380	2 822	569	906	192	225	3 352	3 953
	$75-$99	1 427	1 316	262	479	143	67	1 832	1 862
	$100 or more	561	1 166	193	187	30	72	784	1 425
All IHO managed permanent dwellings(b)		14 990	15 180	4 024	5 111	1 790	1 563	21 287	21 854
IHOs that did not receive rent income		na	72	na	54	na	26	na	100
na not available
(a) Financial data are reported in current prices. Refer to Explanatory Notes paragraphs 25 to 30 for further details.
(b) Includes IHOs where income not stated.

In the 2006 CHINS, a total of 6,973 IHO managed permanent dwellings reported an average maintenance expenditure of $2,000 or more. Of these, 1,779 permanent dwellings remained in need of major repairs and 434 permanent dwellings were in need of replacement.

2.11 Average expenditure on repairs and maintenance per Indigenous Housing Organisations managed permanent dwellings(a)(b), by condition - 2001 and 2006
		Minor or no repairs		Major repairs		Replacement		Total
		2001	2006	2001	2006	2001	2006	2001	2006
		no.	no.	no.	no.	no.	no.	no.	no.
Average maintenance expenditure
	$0	467	2 584	165	875	114	239	746	3 698
	$1-$499	1 855	1 726	682	712	232	235	2 971	2 673
	$500-$999	2 487	2 408	857	687	264	178	3 608	3 273
	$1,000-$1,999	6 057	3 702	1 296	1 058	673	477	8 091	5 237
	$2,000-$9,999	4 044	4 547	987	1 670	504	432	5 742	6 649
	$10,000 or more	80	213	37	109	3	2	129	324
All IHO permanent dwellings		14 990	15 180	4 024	5 111	1 790	1 563	21 287	21 854
IHOs that did not state expenditure on repairs or maintenance(a)		na	86	na	62	na	30	na	111
na not available
(a) Financial data are reported in current prices. Refer to Explanatory Notes paragraphs 25 to 30 for further details.
(b) Components may not add to totals as more than one response may be specified for dwelling condition.