Rent assistance payments increased: Is it enough?
Harry O'Sullivan | Sep 20, 2023 16:15
From today, single Australians eligible for rent assistance who don't have dependent children will receive $184.40 per fortnight, a $27.60 increase.
- From today, Aussies eligible for rent assistance will receive a boost to their payments.
- The maximum rent assistance amount given out per fortnight was increased by up to $36.68.
- Housing advocate says this still isn't enough considering dramatic rent increases across the nation.
Payments for families with one or two children will now be $217.28 a fortnight, up from $184.94.
However, Maiy Azize, a spokesperson for housing advocacy group Everybody's Home, says this is still inadequate in the current rental market.
"Today’s increase to the payment won’t be enough to lift many renters out of housing stress and many vulnerable people will miss out on the rise entirely," she said.
She is calling for the rental assistance program to be reformed, including expanding who is eligible and indexing the payments to better reflect rent increases.
"As rents have soared since the pandemic, rent assistance has not been keeping pace," Ms Azize said.
"On top of this, the payment excludes many of those on the lowest incomes, with two in three people on JobSeeker ineligible."
Supply shortage/h2
Ms Azize said although she would advocate reforms that expand rent assistance payments, the only way to properly fix Australia's housing problems is from the supply side.
"The key solution to fixing the rental crisis is building enough social housing to end the huge shortfall," she said.
In August, vacancy rates around Australia dropped back down to 1.1% according to PropTrack, while Westpac's consumer sentiment survey found confidence among renters dropped 6.1%.
Louis Christopher, managing director of SQM Research, expects supply shortages to have devastating consequences.
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"In response to shortages, housing formation will continue to contract and unfortunately, I am expecting a very large increase in homelessness," Mr Christopher said.
Last week, the government passed the Housing Australia Future Fund bill, a $10 billion investment whereby the returns will be put towards social and affordable housing.
The intention is to build 30,000 homes in the next five years, which might help to ease the pressure in the rent market in the long term.
Ms Azize is a fan of the HAFF, but said more government intervention is still necessary.
"This additional direct investment in social housing is desperately needed and will make a difference to thousands of people who are waiting for a home,” Ms Azize said.
"Passing the Housing Australia Future Fund is important but it simply won’t be enough to turn this crisis around on its own. We can’t end the shortfall without sustained significant, direct investments like we’ve seen today."
"Rent assistance payments increased: Is it enough? " was originally published on Savings.com.au and was republished with permission.
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