A new report reveals that Australians on the lowest incomes are facing severe rental stress across the country, despite recent increases in government payments.
The ‘Priced Out’ 2024 report, released by housing advocacy group Everybody’s Home, shows that people relying on Centrelink payments and full-time minimum wage earners are struggling to afford rentals in both capital cities and regional areas.
The report’s findings come despite recent indexation increases to Centrelink payments and a 10 per cent rise in Commonwealth Rent Assistance (CRA).
Everybody’s Home spokesperson Maiy Azize said there are almost no rental options left for low-income earners in Australia.
“People on the lowest incomes in Australia are being priced out of renting in every corner of our country,” Ms Azize said.
“From those who rely on Centrelink payments to those working full-time on the minimum wage with no income support at all, there’s virtually nowhere in Australia for people on low incomes to afford a rental without falling into crippling housing stress.”
The situation is particularly dire for JobSeeker recipients, who are facing acute rental stress nationwide.
In most capital cities and 10 regional areas, they would need to spend all their income or more on unit rents.
Ms Azize said the severity of the situation is beyond critical.
“People on JobSeeker are being slammed by sky-high rents and payments below the poverty line – in many areas they’d have to spend all their income plus find more cash just to make the weekly rent,” she said.
The report also found that Age Pension and Disability Support Pension recipients would be left with just $8 a day after paying rent in capital cities, while minimum wage earners would have slightly over $25 a day remaining.
Outside of capital cities, the Gold Coast, Northern WA, Sunshine Coast, and Wollongong were identified as the most unaffordable areas, where low-income earners would need to spend at least half their income on rent.
Ms Azize called for urgent action from the federal government.
“We need the federal government to raise Centrelink payments so they don’t fall below the poverty line, and set these payments so they don’t fall behind the real cost of living and housing.”
The report emphasises the need for a significant increase in social housing, with a current shortfall of 640,000 homes projected to reach nearly one million within two decades.
“To make housing more affordable for more Australians, the federal government must increase Centrelink payments, protect renters from unfair rent increases, scrap unfair tax handouts to property investors, and create much more social housing,” Ms Azize said.
