The federal government is being urged to “fix problems” with the Commonwealth Rent Assistance (CRA) by increasing the payments by at least 50%, given that one in two recipients are still in rental stress.
Recent figures from the Productivity Commission showed that around 44% of households receiving assistance were still paying more than 30% of their income on rent.
Over the financial year 2021-2022, the federal government spent roughly $4.9bn on CRA, which is down from a five-year high of about $5.5bn in the previous financial year.
Everybody’s Home national spokesperson Maiy Azize said CRA payments must be reformed to cater to the needs of tenants.
“Commonwealth Rent Assistance can be a lifeline for tenants who are struggling to cope with soaring rents,” she said.
“With the housing crisis at fever pitch, people need help, so they aren’t plunged into homelessness — but these figures show that the payment isn’t enough to lift people out of housing stress.”
The table below shows the proportion of CRA recipients in each state and territory that are still in rental stress:
|
State |
Share of CRA recipients in rental stress (%) |
|
NSW |
46.8 |
|
Vic |
44.3 |
|
Qld |
43.4 |
|
WA |
42.8 |
|
SA |
35.4 |
|
Tas |
32.9 |
|
ACT |
53.9 |
|
NT |
42.3 |
|
Australia |
43.9 |
Ms Azize said it has been decades since the last boost to the rent assistance. Under current policies, the maximum fortnightly payment a single person can receive is $151.60.
“That number just hasn’t kept up with rents, which have surged while the payment lags. It’s no wonder that almost one in two people who get the payment are still in rental stress,” she said.
“Most importantly, we need a long-term commitment to build social housing — today’s numbers show that spending on social housing is falling. If they’re going to fix the housing crisis, the federal government is going to have to step up and build the social and affordable rentals that people need.”
—
Photo by 89Stocker on Canva.
