Recipients of Commonwealth Rent Assistance and the program's
effects on housing affordability for people on low income are
profiled in the latest publication released today by the Australian
Institute of Health and Welfare (AIHW).
The report, Commonwealth Rent Assistance, June 2002: A
profile of recipients, states that for the fortnight ending 14
June 2002, the reference period for the report, a total of 909,062
eligible individuals and families received assistance through the
program, representing about 23% of all Centrelink clients.
Commonwealth Rent Assistance (CRA), a non-taxable income
supplement, is paid through Centrelink to eligible recipients of a
Centrelink pension or allowance, or an amount of Family Tax Benefit
over the base rate of Family Tax Benefit Part A, who rent in the
private rental market.
Head of the AIHW's Housing Assistance Unit, David Wilson, said
of all Centrelink clients, single parents with one or two children
were most likely to receive CRA.
'In this group, 41% received the supplement, representing the
largest proportion of any recipient type,' David Wilson said.
'However, the largest numbers of CRA recipients in absolute
terms were single people without children, representing 55% of all
recipients. '
In examining the effect of CRA on housing affordability, the
report compares the proportion of income that recipients spent on
rent both before and after CRA was received.
'CRA aims to help people on low income with meeting their
private housing rental costs by reducing the proportion of their
income spent on housing, thereby improving affordability,' David
Wilson said.
'Before CRA payments, 28% of all recipients spent more than half
of their income on rent. This figure fell to 9% spending this
proportion on rent, after receiving CRA payments.'
Notable differences between the proportions of income spent on
rent by different recipient groups, before and after CRA was paid,
were reported. For instance, 42% of single people without children
spent more than half of their income on rent before CRA, compared
with 13% after CRA was received.
David Wilson pointed out that CRA recipients could use the
supplement to pay expenses for a variety of accommodation types,
including private rental, board and lodgings, lodgings only,
caravan sites, boat marinas and retirement villages.
'Most recipients - 80% -paid private rent for a dwelling. A
further 9% paid for board and lodgings accommodation, 6% for
lodgings only, with the remaining 5% paying caravan site and boat
mooring fees, or fees for nursing homes or retirement
villages.'
28 May 2004
Further information: Diane Gibson, AIHW, tel.
02 6244 1190, or mobile 0409 466 058.
For media copies of the report: Publications
Officer, AIHW, tel. 02 6244 1032.
Availability: Check the AIHW
Publications Catalogue for availability of Commonwealth
Rent Assistance, June 2002: A profile of recipients, May
2004.