Homes Tasmania has been “hamstrung by duplicated and confused decision making” that has held it back from delivering the housing solutions it promised, according to an independent review released on Monday.
Former NSW Auditor-General Margaret Crawford found the housing authority was operating with unclear governance, funding uncertainty and policy constraints that undermined its ability to form the partnerships needed to address Tasmania’s housing crisis.
The review made 20 recommendations to fix what Crawford called fundamental flaws in how the organisation operates, including confusion over whether the board actually governs the authority or simply advises the government.
“The promise of innovative, flexible partnerships to speed up the supply of housing has not been delivered,” Crawford wrote in her review of the authority, which was set up in 2022 to replace Tasmania’s former housing department.
Housing Minister Felix Ellis on Monday accepted all 20 recommendations, with the most significant being the removal of strategic housing policy from Homes Tasmania and its return to the Department of State Growth.
“This will allow Homes Tasmania to strongly concentrate on the delivery of social and affordable homes, and tenancy and homelessness services,” he said.
Crawford found that while the Homes Tasmania Act 2022 suggested the authority was governed by its board, “current practice, culture and behaviours make the board’s role more advisory in nature”.
The review also identified a key issue where the chief executive and staff effectively served “two masters” in both the board and the government, creating delays and reducing trust between all parties.
Board members with corporate backgrounds were said to struggle with public sector red tape, while community housing providers reported working “in a planning vacuum” with no clear guidance on funding or partnership opportunities.
The construction industry also voiced frustration, pointing to lengthy approval processes and missed business opportunities while waiting for Homes Tasmania decisions.
Crawford noted the authority lacked sophisticated reporting tools and was managing critical financial information through spreadsheets, hampering its ability to provide clear advice on project pipelines and budget status.
Despite the governance problems, Crawford praised staff at Homes Tasmania as “hardworking and committed” and said the organisation had solid foundations to build on.
Homes Tasmania was launched with a $1.5 billion commitment to deliver 10,000 homes by 2032. According to the government, more than 4,300 homes have already been completed.
The review also pointed to broader system-wide challenges, noting that key elements affecting housing outcomes – such as planning reform, land release and infrastructure – are outside Homes Tasmania’s control.
Crawford recommended the government provide funding certainty to the authority, noting that adding to housing stock “is a long-term challenge not well suited to annual budget appropriations”.
Other key recommendations include finalising builder panels “as soon as possible”, introducing better performance metrics and conducting a full financial review by the end of 2025.
The government will also examine exemptions from treasury instructions to give the authority more flexibility in partnerships and procurement and implement a new ministerial statement of expectations by September.
The review comes as Tasmania continues to face mounting housing pressures, with longer wait times for priority social housing applicants and a growing number of people on the waiting list.
