Low-income tenants hardest hit as Australian rent rises outstrip assistance payments

Soaring rents have dramatically outstripped increases to the commonwealth rent assistance (CRA) payment, with house rentals in capital cities rising by an average of 13.8% over the last two years while rent assistance has risen by a maximum of 4.52%, leaving low-income renters hardest hit by the national rental crisis.

The pressure in regional areas is even more severe, with rent increases of 20.2% across the board. Almost half of low-income renters now experience rental stress, spending more than 30% of their income on rent, even with government support.

Social security rates have been indexed on five separate occasions since March 2021, but rent assistance has only increased in that time by a maximum of $5 a fortnight for singles and $6.58 for parents with children, or $2.50 and $3.29 a week respectively.

If elected, the Labor party has pledged to establish the Housing Australia Future Fund, the aim of which is to build 30,000 new social and affordable housing properties over five years. The Labor leader, Anthony Albanese, has said that this increase in housing stock will help ease the pressure on rents.

Labor has also flagged that it will develop a national housing and homelessness plan if elected. Housing, homelessness and welfare organisations have been calling for years for the development of a federal strategy on housing, including renters in its scope, to guide the National Housing and Homelessness Agreement (NHHA), which governs how the states and territories spend the $1.6bn in federal funds set aside for housing.

Labor has not yet provided detail about how the needs of renters will be addressed through that strategy. On top of that, it has not committed to increasing jobseeker payments and has also dropped plans for a review into the jobseeker rate.

They also said housing was a matter for state and local governments.

The chief executive of Tenants Victoria, Jennifer Beveridge, said the needs of renters had been overlooked by the major parties.

Tenants Victoria has joined the Australian Council of Social Services in calling for an increase to the rental assistance payment by 50%, which, at current rates, would lift it to a maximum of $218.70 a fortnight for singles and $290.43 for families.

Struggling renters cut across all demographics. Guardian Australia has reported on the plight of sole parents, regional residents who are being pushed out of their own communities or rendered homeless, flood victims, and renters who become ill due to the uninhabitable condition of their homes.

A national housing strategy that has bipartisan and multi-jurisdictional commitment is critical to solving the housing crisis, including for renters, advocates said.