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Thursday, 21 May 1970


Mr Whitlam asked the Minister for the Interior, upon notice:

What has been the (a) date and (b) extent of the increases in the price and rent of government houses in Canberra in the last 20 years as a result of successive increases in bond and bank interest rales in that period.


Mr Nixon - The answer to the honourable members question is as follows:

Prior to September 1961 rents of Government dwellings in the Australian Capital Territory were calculated without reference to either the bond or bank interest rates.

From 1st September 1961 rents have been calculated on a rental formula which includes components for capital and operating costs.

Capital cost is calculated by amortising the construction cost of a dwelling over 53 years at an interest rate which is 1% less than the long-term bond rate operating at the time of the dwelling's construction.

This is a similar procedure to that adopted under the Commonwealth and States Housing Agreements.

The following interest rates have been applied to amortisation of capital costs:

 

As a guide to the effect on weekly rent of fluctuations in the interest rate, a charge of 0.5% on each$1, 000 of construction cost would vary rent by $0.06 a week.







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