QUESTION ON NOTICE – Homes Tasmania and Housing Connect

Parliament, Questions

QUESTION ON NOTICE – Homes Tasmania and Housing Connect

Legislative Council, Tuesday 17 March 2026

Ms FORREST question to MINISTER for HOUSING and PLANNING, Mr VINCENT

With regard to the operations of Homes Tasmania and the Housing Connect System Reform project:

QUESTION:

  1. What was the original tender value approved for the Housing Connect System Reform project?

ANSWER:

There was no set tender value for the Housing Connect System Reform as the project is made up of multiple parts including service design and delivery, and IT system infrastructure.

QUESTION:

  • What procurement method was used for the initial contract (open tender, selective tender, or limited tender) in accordance with Treasurer’s Instruction PP-2 Market Approaches?

ANSWER:

The original Housing Connect tender for the new service delivery model was a limited tender to existing service providers.

QUESTION:

  • What was the original approved project scope, and has this scope been altered or expanded since contract award?

ANSWER:

The original approved project scope included four aspects:

  1. More ways and places for people to get the help they need to find, and keep, safe, affordable and appropriate housing.
  2. Services and supports that are shaped for each person’s individual circumstances and life stage.
  3. Actions to increase the range of housing assistance options.
  4. Skilled and supported staff delivering an Advantaged Thinking approach to providing support to people seeking help.

The original project scope included an enhancement to the Specialist Homelessness Information Platform (SHIP) to improve support assessments. The scope was later expanded to replace SHIP with a fit-for-purpose client information platform (the Housing Connect database).

QUESTION:

  • How many contract variations have been issued, and what is the total value of those variations?

ANSWER:

There have been no contract variations.

QUESTION:

  • What is the total amount spent to date, including all committed expenditure, on the Housing Connect System Reform project?

ANSWER:

$4,914,158

QUESTION:

  • By what percentage has the project exceeded the original tendered cost, and what are the primary drivers of the financial blowout?

ANSWER:

Noting there was no single original tender value, and the reform project is ongoing, the final project cost is yet to be finalised.

QUESTION:

  • (a)             Has Homes Tasmania undertaken any value-for-money assessments during project delivery, as required by Treasurer’s Instruction PF-1 Procurement Principle?

7.    (b)            If so, please table those assessments

ANSWER:

The service delivery reform has been in place for one full year and data relating to the reform was published by the Australian Institute of Health and Welfare (AIHW) as part of its Specialist Homelessness Services Annual Report 2024-25. The report shows that fewer Tasmanians needed homelessness services this year with 6 323 people assisted compared with 6 672 in 2023-24 – a 5.2 per cent decrease.

The new service model also reduces the need for multiple support periods. This is shown in the significant reduction in the number of overall support periods, with Tasmanians facing homelessness needing 10 015 support periods in 2024-25 compared with 14 321 in 2023-24.

QUESTION:

  • When did the project formally commence, and what was the original delivery date?

ANSWER:

The Housing Connect Reform commenced in May 2019 and the original delivery date was 1 July 2023.

QUESTION:

  • How many revised delivery dates has Homes Tasmania approved, and what reasons were provided for each revision?

ANSWER:

Three.

Delivery of the new Housing Connect service model was originally due on 1 July 2023 but was revised to 1 July 2024 following the decision to replace SHIP.

The service model was delivered on 1 July 2024 but the delivery date for the website portal and database was revised to 1 April 2025 due to data migration issues.

A third delivery date for the IT components is required due to ongoing data migration and functionality issues.

QUESTION:

  1. What is the principal cause of both the cost escalation and the delays in project delivery?

ANSWER:

Changes in project costs and delays have occurred due to the complexity of the development and integration of the new database.

QUESTION:

  1. How many consultants, subcontractors or third-party providers have been engaged in this project since its commencement?

ANSWER:

Eleven

QUESTION:

  1. Were all consultants and contractors engaged under written contracts, as required under the Treasurer’s Instructions?

ANSWER:

Contractors were engaged under written contracts. 

QUESTION:

  1. Were any consultants or contractors engaged through:
    1. contract extensions or rollovers, rather than open procurement;
    1. urgent or emergency procurement provisions; and
    1. if so, what was the justification?

ANSWER:

Consultants and contractors were engaged through open procurement process or direct selection and remain in the project through extensions or rollovers.

QUESTION:

  1. Has Homes Tasmania complied with all relevant Treasurer’s Instructions, including but not limited to:
    1. PF-1 Procurement Principles;
    1. PF-2 Policies Impacting Procurement;
    1. PP-1 Procurement Valuation;
    1. PP-2 Market Approaches;
    1. PP-4 Works Procurement (if applicable); and
    1. PF-5 Accountability and Reporting?

ANSWER:

Homes Tasmania complies with all relevant Treasurer’s Instructions.

QUESTION:

  1. If any non-compliance was identified, when was this reported, to whom, and what corrective action was taken?

ANSWER:

N/A

QUESTION:

  1. Has Homes Tasmania complied with its obligations under the Financial Management Act 2016, including the requirement for the proper, efficient and effective use of public resources?

ANSWER:

Homes Tasmania is not subject to the provisions of the Financial Management Act 2016, other than the Treasurer’s Instructions (s 13 of the Homes Tasmania Act 2022). Homes Tasmania operates in a manner that ensures proper, efficient and effective use of its resources.

QUESTION:

17.      (a)       Given the scale of the project, is the project subject to oversight under the Public Works Committee Act 1914; and

17.      (b)       if not, why not? 

ANSWER:

No – Homes Tasmania and the project are not subject to the Public Works Committee Act.

QUESTION:

18.      (a)       Was a Risk Management Plan developed at project commencement; and

18.      (b)       if so, how frequently has it been updated?

ANSWER:

  1. Yes
  2. Monthly

QUESTION:

19.      At what stage did escalating project risks relating to cost, scope, and schedule become apparent, and were these risks formally documented and escalated?

ANSWER:

Risks have been identified and managed at all stages throughout the project

QUESTION:

20.     How frequently was the Minister for Housing briefed on project performance, including cost and timing risks?

Housing Connect reform has been a standing agenda item at Regular Fortnightly Meetings between Homes Tasmania and the Minister for Housing since late 2023.

QUESTION:

21.      (a)       Has any internal assurance review, gateway review, ICT governance review, or external audit been undertaken; and

21.      (b)       if so, will the Minister table the findings

ANSWER:

  1. An internal review of the IT component of the project was undertaken
  2. Noting this was an internal review, it has not been provided to the Minister

QUESTION:

22.      Has Homes Tasmania issued any performance notices, improvement notices, breach notices or similar actions to the principal contractor or subcontractors during the project?

ANSWER:

No

QUESTION:

23.       Why did the CEO/Director of Homes Tasmania direct that the Housing Connect System Reform be rolled out despite the new ICT system not being operational, and what assessment was made of the risks this posed to community service providers?

ANSWER:

The purpose of the Housing Connect System Reform project was to improve housing support for Tasmanians in need and the latest SHS annual report demonstrates it has been successful. These service improvements were not dependent on either the portal or platform

The decision was made after considering risks with contract compliance between Homes Tasmania and the Housing Connect 2.0 providers if the new model did not commence from 1 July 2024.

QUESTION:

24.       What assessment was undertaken of the operational impact on service providers, before requiring the sector to adopt the new program without a functioning data system?

ANSWER:

The staged approach to Housing Connect 2.0 implementation was discussed and agreed at the April 2024 meeting of the Housing Connect Reform Steering Committee (HCRSC), which was attended by Housing Connect service providers, Shelter Tas and specialist homelessness service representatives. The HCSR project has been co-designed and implemented with the sector.

QUESTION:

25.       Were Service providers, including Colony 47/ Home Base, consulted about the impact to their ability to deliver the new Housing Connect program without the data system in place?

ANSWER:

Yes.

QUESTION:

26.       Did Homes Tasmania receive advice from service providers warning that the rollout was premature or unworkable, and how was this advice acted upon?

ANSWER:

No. Successful proponents agreed to implement structural changes to the service model

QUESTION:

27.       Was a formal risk assessment undertaken before directing implementation of the new Housing Connect model without the accompanying data system, and will the Minister table that assessment?

ANSWER:

Risks have been identified and managed at all stages throughout the project

QUESTION:

28.       Did Homes Tasmania’s executive or board approve the decision to proceed with rollout, and what advice was provided to them regarding service-delivery risks?

ANSWER:

The decision was approved by the CEO and noted by the Board on the advice that the continued use of SHIP mitigated risks to service delivery.

QUESTION:

29.       Were any alternative options considered, such as staged rollout, delay, or maintaining existing contracts, until the data system was functional?

ANSWER:

Yes.

QUESTION:

30.       Did the early rollout breach any contractual obligations owed to service providers, including obligations around systems readiness, data access, and operational continuity?

ANSWER:

No.

QUESTION:

31.      (a)       Was the termination or non-renewal of contracts (including Colony 47/Home Base) made before the ICT system was confirmed as operational, and

31.      (b)       if so, why?

ANSWER:

  1. All Housing Connect contracts (including Colony 47/ Home Base) expired on 30 June 2024.
  2. All providers were invited to tender for the new Housing Connect model

QUESTION:

32.       When was the Minister first briefed that the system was not ready for use, and did the Minister approve or endorse the decision to proceed regardless?

ANSWER:

The Minister was first briefed on the two-stage approach to Housing Connect 2.0 implementation in May 2024.

QUESTION:

33.       Did the Minister or Department receive any warnings from Homes Tasmania, consultants, or community providers about the risks of proceeding with the changed model without a functional system?

ANSWER:

No.