The New Zealand Housing Grant may not be able to sustain this benefit.
The Minister of Social Development has sent the signal.
At the same time, the media began to expose that a large number of New Zealanders were receiving the subsidy, and the amount was accumulating to the sky.
Among them, there are also landlords who have already bought a house and cannot afford to pay the mortgage.
New Zealand netizens exclaimed: "I really can't understand why taxpayers have to pay housing subsidies for some people's mortgages. If you can't afford the mortgage, you should sell your house and buy a property that you can afford!"
01
Minister: Is housing subsidy "sustainable"
Louise Upston, now Minister of Social Development, oversees social welfare policy.
Her task is to build on the previous Labour Party's "indiscriminate welfare" efforts, to make the welfare recipients work, and to rebalance the welfare budget.
As the saying goes, it is easy to go from simple to luxurious, and difficult to go from luxury to simple.
All she did was cut down the flesh, and now it may be the turn of the "housing subsidy".
Today, the media began to announce the spending of New Zealand's housing subsidies.
The number of New Zealanders receiving housing subsidies has reached 364,000.
Most of them are renters, but there are also some homeowners who can't afford to pay their mortgages.
In 2023, the housing subsidy paid by the New Zealand government reached NZ$2.34 billion.
Magnus O'Neill, Minister and General Manager of Executive Services of the Ministry of Social Development, published data on housing allowance beneficiaries as of January 31, 2024:
- Renters receive: 258,885 renters received 71% of the total subsidy;
- Boarding recipients: 68,778 residents received 18.9% of the total subsidy;
- Landlord receiving: 36,630 homeowners received 10.1% of the total subsidy.
The New Zealand government paid a total of NZ$2.3 billion in housing subsidies in June 2021, which increased by 3% to $2.38 billion in 2022 and decreased to $2.34 billion in June 2023.
In response, the Minister of Social Development, Louise Upston, said: "The housing subsidy exists to provide a safety net for people who are struggling to live on the cost, but now it is necessary to consider whether the subsidy system is fair and sustainable in the long term. ”
She said the coalition government inherited the current rental market from Labour and that the situation was one to watch.
"It's not surprising that tenants need more government financial support," Upston said. That's why our coalition government cabinet is working hard to push rents down and free up more disposable income for New Zealanders.
"We've tried to turn things around and attract more landlords and rentals to the market by reinstating interest credits for investors, reinstating the 'bright line' test period for properties, and removing Labor's ban on terminating leases without cause. ”
02
New Zealand's "Housing Allowance"
In New Zealand, if you have difficulty housing housing, whether it is difficulty paying rent or paying a loan, you can ask the government for help.
The government will then weigh the applicant's qualifications to see if they meet the criteria for granting the housing subsidy.
A housing allowance is a weekly payment that helps people pay for rent, boarding fees, or mortgage costs.
Conditions for obtaining the subsidy:
- Age 16 years and above
- New Zealand citizens or permanent residents
- Normally resides and intends to stay in New Zealand on an extended basis
- Not be a tenant of social housing (e.g. public housing).
- Income and assets are within the limit
The amount of the subsidy depends on income, assets, housing costs, family circumstances, and area of residence.
There is no tax on this subsidy, and the amount of the subsidy that may be received can be estimated through an online tool.
The asset limit is not more than NZ$8,100 for a single person and NZ$16,200 for a couple or single parent.
New applicants can apply online or by filling out a paper form, while existing beneficiaries can fill out a housing allowance application form. After submitting the application and supporting documents, it is sometimes necessary to make an appointment by phone or in person.
The New Zealand Housing Subsidy has long been considered a subsidy for landlords. This is because when a tenant receives this government subsidy, it usually passes it on to the landlord in the form of weekly rent.
03
Why is the housing subsidy getting higher and higher?
Mainly because the entire rental housing market is expanding, so it is logical that the housing subsidy is getting higher and higher.
As of November 1 last year, deposits were deposited in 410,904 residences nationwide, including townhouses, apartments, units and detached houses, according to the statistics of the rental market bond.
This is a 38% increase from 297,624 in 2010.
At least more than 1.4 million people live in rental housing.
Currently, the New Zealand Deposit Service holds more than $820 million in deposits in the Housing Rental Fund.
Available data puts an estimated 663,700 rental dwellings in New Zealand in the fourth quarter of 2023.
At present, 258,000 tenants have received housing subsidies, accounting for about 39% of the total number of tenants.
04
Netizens quarreled and more than 30,000 landlords are also receiving it
The news was hotly commented on by New Zealanders, and some people worried about whether the situation of the poor receiving welfare and the rest going to Australia could be sustainable.
"The harsh reality is that we are a poor, remote country with a sparse population. In New Zealand, those who are considered wealthy (with an income of more than $70,000) pay most of the country's taxes, while those who are poorer are accustomed to government subsidies. Labour's approach is smart...... But now that the so-called 'rich' is overwhelmed and the balance of stability has shifted, how will too many of us pay for everything New Zealand needs when we go overseas?"
There are also New Zealand netizens who quarreled in the comment area about whether people who bought houses should receive it.
There is a view that the person who buys the house is responsible for himself.
Some netizens said, "Don't buy things you can't afford", don't always look for reasons like "the situation has changed".
"You can't continue to pay, I'm sorry, but that's life. Sell your house and buy something on a budget. Why do we have to pay their mortgage? My mortgage has never been paid.
"Before, they were talking about millions, now they're talking about billions, what is that like? So, if you look at the subsidy figure paid, it's equivalent to $476 per person. No wonder the country is so chaotic. ”
There is also a school of thought that it is unsympathetic to say this, and that everyone may encounter a change in the situation.
One netizen said, "Changes in circumstances may include illness or injury, requiring expensive care, wheelchair ramps, medications, purchasing a vehicle to carry the wheelchair, routine treatment, or special hospital beds...... Make such a heartless comment...... Frankly, it makes me sick. ”
layoffs, layoffs, benefits,
During this term, it will happen one after another,
Do you think New Zealand's housing subsidy should be cut?