The problem identified in this paper is twofold. One is the plight of publi
c housing at the end of the decade, with State programs undermined by Commo
nwealth funding cuts; the other is the problem of intergovernmental reform
and its consequences for discrete areas of policy such as housing. The pape
r traces developments in Commonwealth-State housing arrangements, beginning
with the reforms initiated through the Council of Australian Governments t
hrough to the still uncertain future of public housing under the Howard gov
ernment. It examines a number of inquiries into housing and recommendations
for reform which served the plans of reformist governments intent on separ
ating out the functional roles and responsibilities of the Commonwealth and
the States. In particular, these inquiries advocated an 'affordability' be
nchmark which sought to blur the distinction between public and private ren
tal housing leading, inevitably, to the residualisation of the public housi
ng sector.