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National Council

SVdP Housing Australia

‘St Vincent de Paul Society shares the concerns expressed by the Grattan Institute about retirees who rent being left behind,’ said the Society’s National President, Mark Gaetani.

Media Release urge for rent assistance increase 

Report strengthens case for rent assistance increase

<p data-olk-copy-source="MessageBody">A new <a data-auth="NotApplicable" href="https://ncofficemedia.cmail20.com/t/r-l-thyuttkd-nhijujdcd-y/" title="https://ncofficemedia.cmail20.com/t/r-l-thyuttkd-nhijujdcd-y/" data-linkindex="2" target="_blank" rel="noopener">study</a> of the Australian housing market highlights the need for an urgent increase in the rate of Commonwealth Rent Assistance (CRA) for older renters, especially retirees.</p>
<p>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.</p>
<p>‘St Vincent de Paul Society shares the concerns expressed by the Grattan Institute about retirees who rent being left behind,’ said the Society’s National President, Mark Gaetani.</p>
<p>‘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.</p>
<p>‘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.</p>
<p>‘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.’</p>
<p>Mr Gaetani said the Society is 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.</p>
<p>‘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.</p>
<p>‘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.</p>
<p>‘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.</p>
<p>‘How many more reports do we need in order to prove the obvious point that people on lower incomes are not able to have a decent life in the current economic climate? Even the Government’s own Economic Inclusion Advisory Committee recommends that more work be done to address the long-term reduction in adequacy of the CRA payment and better reflect the current rental market.</p>
<p>‘The time for action to correct this unfairness is now, not after the federal election amidst the complexity of policy discussions undertaken by a new government.’</p>
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<p><em>The St Vincent de Paul Society in Australia consists of 45,000 members and volunteers who operate on the ground through over 1,000 groups located in local communities across the country.</em></p>
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<div style="text-align: center;" aria-hidden="true"><strong>MEDIA CONTACT</strong></div>
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<p lang="x-size-14" class="x_size-14" style="text-align: center;"><strong>0475 068 209 or </strong><a data-emb-iscopy="true" href="mailto:media@svdp.org.au" data-linkindex="3">media@svdp.org.au</a></p>
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