The St Vincent de Paul Society says a new study of the Australian housing market highlights the need for an urgent increase in the rate of Commonwealth Rent Assistance for older renters, especially retirees.
Following extensive research with this cohort of renters, the Grattan Institute recommends the maximum rate of CRA should be increased by 50 per cent for singles and sharers, and 40 per cent for couples, and that CRA be indexed to changes in rents for the cheapest 25 per cent of rental homes in capital cities.
St Vincent de Paul Society national council president Mark Gaetani said the charity “shares the concerns expressed by the Grattan Institute about retirees who rent being left behind”.
“It is deeply disturbing to know that two in three retirees who rent in the private market live in poverty, and that the problem is set to get worse,” Mr Gaetani said.
“Unfortunately, the issue of rental affordability cuts right across the community, with many renters of all ages and circumstances facing a market characterised by high costs and a lack of available rental properties.
“Thirty per cent of low-income households, or 2.65 million people, are now in the private rental market, with two thirds of them experiencing rental stress. Some 170,000 households are surviving on less than $250 per week after paying rent. Even CRA recipients experience high rent burdens and rental stress.”
Mr Gaetani said the society was calling for an urgent review of Commonwealth Rent Assistance, which should include all current recipients as well as low-income households who are not eligible.
“The review should cover all aspects of the payment design with the aim of improving the sufficiency, fairness and effectiveness of the payment. CRA should significantly improve rental affordability and reflect fluctuations in rents and local rental market circumstances.
“It is unacceptable for any renters to be paying more than 30 per cent of their income on housing, whether they’re older retirees, who were the Grattan Institute’s focus, or people of working age.
“The society firmly believes – and has consistently argued to the Government – that despite some recent increases, additional funding is required to make significant improvements to housing affordability for low-income households.”
FULL STORY
Report strengthens case for rent assistance increase (St Vincent de Paul Society)
