‘Set to get worse’: Will a $2 billion boost fix Australia’s pensioner housing crisis?
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Housing affordability has long been a concern, but for many older Australians, the struggle to keep a roof over their heads has reached a critical point.
With rental prices soaring and financial support failing to keep up, an increasing number of retirees are being pushed to the brink.
As the cost of living continues to climb, experts warn that the situation is only set to worsen—unless meaningful action is taken.
Housing stress among retired Australians has become a growing crisis, with a significant number struggling to afford rent in their later years.
The Grattan Institute reported that two in three older renters—like pensioner Debra Basham—were living in poverty, warning the situation was ‘set to get worse’ if left unaddressed.
Basham, 67, had been forced to skip meals due to financial strain, describing her situation as a constant ‘struggle’.
In response, the Grattan Institute called for another increase to Commonwealth Rent Assistance (CRA), which was last raised in September.
However, NSW Tenants Union CEO Leo Patterson Ross argued that increasing payments alone would not solve the issue if rental market challenges remained unchecked.
‘Unless you do something about rent prices, you're always chasing increasing rents,’ he shared.
‘A 10 per cent increase in Rent Assistance is kind of helpful, but if rent went up 20 per cent, you're still behind.’
He also noted that CRA was only available to those already receiving Centrelink payments and renting a home, meaning many people in need were missing out.
More than 165,000 Australians aged 55-64 received CRA, yet rising rental prices had outpaced government support.
According to Domain, rents had surged across all capital cities in the past four years—weekly rent in Sydney had increased by up to $540, Brisbane by $410, and Perth by $390.
Although prices had stabilised, experts warned they were unlikely to decrease.
In the 2024-25 Federal Budget, the government implemented a 10 per cent increase to CRA, adding $12 to $19 per fortnight for single recipients.
Despite this, the Grattan Institute found that since 2001, pensioners relying on Centrelink had seen rent increase at a rate 1.5 times higher than the maximum CRA payment.
‘Even after these increases, a single retiree who relies solely on income support can afford to rent just 4 per cent of one-bedroom homes in Sydney, 13 per cent in Brisbane, and 14 per cent in Melbourne,’ the report stated.
It concluded that ‘Australia is failing too many retirees who rent’, adding that only a significant boost to CRA would ensure a dignified retirement for all Australians.
Changes to Centrelink you can’t afford to miss—read more!
With rental stress pushing more retirees into financial hardship, is a boost to Commonwealth Rent Assistance enough, or does Australia need a larger overhaul of its housing policies?
Let us know your thoughts in the comments.
With rental prices soaring and financial support failing to keep up, an increasing number of retirees are being pushed to the brink.
As the cost of living continues to climb, experts warn that the situation is only set to worsen—unless meaningful action is taken.
Housing stress among retired Australians has become a growing crisis, with a significant number struggling to afford rent in their later years.
The Grattan Institute reported that two in three older renters—like pensioner Debra Basham—were living in poverty, warning the situation was ‘set to get worse’ if left unaddressed.
Basham, 67, had been forced to skip meals due to financial strain, describing her situation as a constant ‘struggle’.
In response, the Grattan Institute called for another increase to Commonwealth Rent Assistance (CRA), which was last raised in September.
However, NSW Tenants Union CEO Leo Patterson Ross argued that increasing payments alone would not solve the issue if rental market challenges remained unchecked.
‘Unless you do something about rent prices, you're always chasing increasing rents,’ he shared.
‘A 10 per cent increase in Rent Assistance is kind of helpful, but if rent went up 20 per cent, you're still behind.’
He also noted that CRA was only available to those already receiving Centrelink payments and renting a home, meaning many people in need were missing out.
More than 165,000 Australians aged 55-64 received CRA, yet rising rental prices had outpaced government support.
According to Domain, rents had surged across all capital cities in the past four years—weekly rent in Sydney had increased by up to $540, Brisbane by $410, and Perth by $390.
Although prices had stabilised, experts warned they were unlikely to decrease.
In the 2024-25 Federal Budget, the government implemented a 10 per cent increase to CRA, adding $12 to $19 per fortnight for single recipients.
Despite this, the Grattan Institute found that since 2001, pensioners relying on Centrelink had seen rent increase at a rate 1.5 times higher than the maximum CRA payment.
‘Even after these increases, a single retiree who relies solely on income support can afford to rent just 4 per cent of one-bedroom homes in Sydney, 13 per cent in Brisbane, and 14 per cent in Melbourne,’ the report stated.
It concluded that ‘Australia is failing too many retirees who rent’, adding that only a significant boost to CRA would ensure a dignified retirement for all Australians.
Changes to Centrelink you can’t afford to miss—read more!
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With rental stress pushing more retirees into financial hardship, is a boost to Commonwealth Rent Assistance enough, or does Australia need a larger overhaul of its housing policies?
Let us know your thoughts in the comments.
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