PUBLIC housing freeloaders who "inherited" leases from their parents will be kicked out and forced to fork out for private rentals as part of a major state government shake-up of tenancy rules.
The move is aimed at addressing the state's public housing crisis by freeing up properties occupied by freeloaders to offer to some of the 55,479 people on the waiting list.
From the end of March, when a tenant has to leave their home, the children, younger spouses and other people approved to live in the home will no longer be able to inherit the public housing tenancy.
The government hopes its tough new rules will break the cycle of public housing in some families by forcing offspring tenants to effectively re-qualify for a home.
Housing NSW believes there are hundreds of cases of children who have taken over a property by default despite being able-bodied and capable of earning an income. The government will introduce a tough new succession of tenancy policy to ensure only those in desperate need stay on.
The changes, to come into effect later this month, will not apply to residents over 55 or legal guardians of a minor.
Family and Community Services Minister Pru Goward said public housing was not a life long benefits that parents could pass on to their children.
"I have taken a close look at the practice of what is called succession of tenancy," she said. "Under this policy, currently when a parent has to leave their public housing home, for example to go into a nursing home, their able bodied children can take over the public housing lease and stay there for life.
"Public housing is meant to be a hand up, not a life-long benefit which parents can pass to their children.
"This is not fair."
The government last year cracked down on people on the waiting list, removing those who did not stay in touch, only to resurface back into their original position in the queue. It also released details of waiting lists times in others states and territories to allow those in need of housing to move interstate.
The department has also identified 1300 people who have been living in public housing for free. They will soon be charged rent.
A further 1600 who have been suspected of freeloading are under investigation.
Ms Goward said tenants who inherited a property but no longer fit the criteria to stay on would be given six months to find a private rental.
