Nearly one million Australians receiving Commonwealth Rent Assistance are set to benefit from a 10 per cent increase in their fortnightly payments as part of a comprehensive strategy to alleviate the cost-of-living pressures faced by renters.
In Treasurer Jim Chalmers’ third budget, the Labor government has pledged $1.9 billion over five years to boost rent assistance by approximately $25 per fortnight. This funding injection comes on top of last year’s 15 per cent increase.
For instance, a single person with three or more children currently receiving the maximum rate of $249.90 will see their payment rise to around $274.90 per fortnight. Similarly, a couple with one or two children can expect their payment to increase by approximately $22.10 to $243.30, while single individuals will receive around $18.80 more, totaling $207 per fortnight.
Chalmers emphasized that with this 10 per cent rise, combined with regular indexation and last year’s 15 per cent hike, maximum rental assistance has surged by over 40 per cent since May 2022. He stated in his budget speech that addressing rising rents is crucial in combating inflation and supporting renters in need, marking the first consecutive increase to Commonwealth Rent Assistance in over three decades.
In addition to the rent assistance boost, the government is dedicating an extra $6.2 billion to its Homes for Australia Plan, increasing total investment to $32 billion. This funding aims to realize Labor’s ambitious target of constructing 1.2 million new homes within five years from July 1.
To address housing stress comprehensively, the budget includes additional measures such as allocating $423 million toward a new five-year National Agreement on Social Housing and Homelessness with states and territories, totaling $9.3 billion. Furthermore, the treasurer has pledged to enhance housing supply for students by linking international enrolments to universities’ housing construction efforts.
