Financial assistance

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Quick facts

  • Australian Government Commonwealth Rent Assistance (CRA) key findings include:
    • At June 2022, around 1.3 million income units (individuals or group of related persons) were receiving Commonwealth Rent Assistance (CRA).
    • Almost 1 in 2 (44% or 582, 400 income units) were considered to be in rental stress after receiving CRA.
  • State/territory government provided programs in 2021–22:
    • Around 56,900 households received Private Rent Assistance (PRA).
    • Home Purchase Assistance (HPA) was received by 43,300 households.
    • Over 3 in 5 PRA recipients were located in major cities.

Financial assistance is one the main types of housing assistance provided to low-income households in Australia. Housing costs are often one of the largest expenses for low-income households. Governments offer various forms of financial support to help people afford housing costs, such as assisting with the cost of rent and accessing home loan finance.

This section provides information on the financial assistance related to rental costs and home purchases based on data on 30 June of the reference year. It provides insight into the scale and effectiveness of certain financial assistance programs. It includes financial assistance information on:

  • the Commonwealth Rent Assistance program
  • the Private Rent Assistance programs
  • the Home Purchase Assistance programs.

Commonwealth Rent Assistance (CRA)

CRA helps people with lower incomes afford rental housing and is the most common form of housing assistance received by Australian households. CRA is available to individuals or families receiving a social security payment that pays rent for a community housing dwelling or housing in the private rental market. The amount of rent assistance people can receive depends on an applicant’s income, rent and household circumstances. For more information, see the CRA eligibility conditions and rent assistance payments.

Commonwealth Rent Assistance

CRA is a non-taxable payment, which is generally paid fortnightly to eligible recipients as part of a recipient’s primary payment rate. It is available to eligible recipients who rent in the private rental market or community housing. To be eligible, families or individuals must: be in receipt of a social security payment more than the base rate of Family Tax Benefit Part A; or an eligible veterans’ income support payment; and pay or be liable to pay more than a specified rent threshold.

Qualification for CRA is assessed as part of the process for claiming a social security payment and it forms part of the rate of that payment. For information about CRA eligibility, see Department of Social Services.

CRA is paid at 75 cents for every dollar above a minimum rental threshold until a maximum rate (or ceiling) is reached. The minimum threshold and maximum rates vary according to the household or family situation, including the number of children.

Certain social housing tenants are eligible for CRA, such as those living in community housing or Indigenous community housing and, in some states and territories, state owned and managed Indigenous housing (SOMIH). CRA is not generally payable to public housing tenants as state and territory housing authorities already subsidise rent for these tenants.

The data presented reflect the CRA data on the last Friday of the specified financial year (for example, 2022 data was as a 24 June 2022).

Source: DSS 2019.

In 2022, 1.3 million income units were receiving Commonwealth Rent Assistance (CRA) — a decrease from the all-time high of 1.7 million income units in 2020 (noting the Impact of COVID-19 section below). The number of income units receiving CRA in 2022 was similar to the numbers between 2014 and 2019, generally around 1.3 million.

In 2021–22, the Australian Government spent $4.9 billion (in real terms) on Commonwealth Rent Assistance —a decrease from $5.5 billion in 2020–21 (Productivity Commission 2023). Most CRA income units were in New South Wales (436,100 income units) and Queensland (346,000 income units) (Table CRA.1).

Impact of COVID-19 on the receipt of government benefits

COVID-19, JobSeeker Payment and Youth Allowance

The jobless rate in Australia increased as the COVID-19 pandemic severely affected the Australian economy (Parliamentary Library 2020). In the months leading to the COVID-19 pandemic, the seasonally adjusted unemployment rate was around 5.0% (from December 2019 to March 2020). By July 2020, it peaked at 7.5% – the highest in over 20 years (ABS 2023). The economic and social impact of COVID-19 pandemic hit many Australians hard and fast. However, the rate of unemployment has declined sharply since then, falling below the pre-pandemic level to 4.7% in July 2021, and to 3.5% in February 2023 (ABS 2023).

In response to COVID-19 and the associated increase in unemployment, the Australian Government made changes to social security payments from March 2020. Broadly, these changes meant that more people were eligible for and received social security payments throughout 2020 and 2021 (Productivity Commission 2023).

Changes included introducing Jobseeker to replace Newstart Allowance, Sickness Allowance and Bereavement Allowance. The Coronavirus Supplement and Economic Support was also made available to recipients of the JobSeeker Payment, Youth Allowance (JobSeeker, Student and Apprentice), Parenting Payment (Partnered and Single), Sickness Allowance, Austudy payment, ABSTUDY living allowance, Widow Allowance, Partner Allowance, Farm Household Allowance, Special Benefit, and certain Department of Veterans Affairs student payments. Over time, the amount paid to recipients changed:

  • from 27 April 2020 to 24 September 2020, recipients received $550 per fortnight
  • from 25 September 2020 to 31 December 2020, recipients received $250 per fortnight
  • from 1 January 2021 to 31 March 2021, recipients received $150 per fortnight.

From 1 April 2021 onwards, JobSeeker Payment, Austudy and Youth Allowance increased by $50 per fortnight (Treasury 2020).

Impact of COVID-19 on the changes over time

In 2020, the number of CRA income unit recipients and CRA expenditure peaked, largely because of the temporary changes to social security that allowed more people to access income support during the height of the COVID-19 pandemic. Because more people were eligible for CRA, the number of income of units increased and as a result, expenditure also increased (Table CRA.1).

CRA recipients by selected characteristics

Of the 1.3 million income units receiving CRA in 2022, most were single with no dependent children (46%), had a non-Indigenous reference person (93%), and were aged 45 years or over (55%).

The primary payment type that the households received in 2022 were (Table CRA.1):

  • JobSeeker (24%),
  • Age Pension (23%) and,
  • Disability Support Pension (20%).

Figure FINANCIAL.2: Income units receiving Commonwealth Rent Assistance by SA2, at June 2019 to 2022

Click on the interactive map to explore the data

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Income units receiving Commonwealth Rent Assistance by SA2, at June 2019 to 2022

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INTERACTIVE MAP

Statistical Area level 4 (SA4) is the largest geographical area of sub-state regions in the ASGS. SA4s represent labour markets or groups of labour markets within each state and territory. An SA4 generally has a population between 100,000 to 300,000 people in regional areas and 300,000 to 500,000 people in cities.

In 2022 (Table CRA.3):

  • At the SA4 level, Melbourne—Inner had the highest number of income units aged 24 years and under (5,500). The Gold Coast had both the highest number of income units who were aged 75 year and over (7,300) and receiving a Disability support pension (7,200) (Figure FINANCIAL.3).

Figure FINANCIAL.3: Income units receiving Commonwealth Rent Assistance by special needs group and SA4, at June 2019 to 2022

Click on the interactive map to explore the data

  • For the best experience use Chrome, Edge or Firefox browsers. For more information on browser compatibility, see Supported browsers
  • Best viewed on a desktop, laptop or tablet.

Income units receiving Commonwealth Rent Assistance by special needs group and SA4, at June 2019 to 2022

(map opens in a new window)

INTERACTIVE MAP

CRA as a proportion of rent paid

Rental prices and the proportion of rent covered by CRA can differ across states and territories, as well as from region to region. CRA often accounts for less of the proportion of rent in capital cities, as capital cities generally have a higher median fortnightly rent.

In 2022, the median fortnightly rent of income units in the capital cities was higher than those in the rest of the state or territory. However, the difference in median rent was larger in some states and territories than in others. In New South Wales, Western Australia and Northern Territory, the median fortnightly rents were around $100 higher in capital cities, and between $20 (Queensland) to $70 (Victoria) higher in the other states and territories.

There were also differences in the proportion of rent paid for by CRA entitlements between regions. The proportion of rent accounted for by entitlements was higher among income units in the rest of the state regions than those in capital cities. In all states and territories except Queensland, CRA entitlements covered around 33% of the fortnightly rental costs in the rest of state regions, but around 29% for income units in capital cities. However, in Queensland, the difference in the proportion of rent covered by the entitlement between Brisbane (29%) and the rest of Queensland (30%) was small in contrast to other states and territories (Table CRA.6).

Rental stress and CRA

Many renters, especially those with low to moderate incomes, struggle to pay for high rents without compromising or sacrificing on other basic living costs (ABS 2022). Rental stress is about whether rental housing is affordable for these households (AHURI 2019). In Australia, households’ rental affordability is commonly measured by the level of rental stress, defined as a CRA income unit spending more than 30% of gross income on rent.

To provide insight into how much CRA reduced rental stress among income units receiving CRA, the proportion of income spent on rent before receiving (or without) CRA is compared with the proportion of income spent after receiving (or with) CRA.

In 2022, around 582,400 (44%) income units were in rental stress with CRA. By contrast, an extra 372,600 income units or almost three-quarters of income units (72%) would have been rental stress without receiving CRA in 2022 (Table CRA.8).

The number of income units receiving CRA in rental stress has fallen from last year but is still higher than in previous years. Although lower than 2021 (669,900), the number of (582,400) income units in 2022 is still higher than the numbers reported from 2013 to 2019, which ranged from 503,000 to 552,500.

Impact of COVID-19 on the rental stress changes over time

In 2020, the number and proportion of income units receiving CRA in rental stress reached an all-time low, despite the total number of income units reaching an all-time high. About 487,900 or 29% of income units receiving CRA were in rental stress in 2020. These lows were largely due the additional financial support and rent freezes introduced by governments to reduce the impact of COVID-19 in 2020 (detailed above) (Table CRA.8).

Special needs groups

Of the 586,600 income units in the various special needs groups, around 38% (or 223,100) were in rental stress after receiving CRA in 2022. However, the extent to which CRA reduced rental stress differed across the special needs groups. In 2022, income units with a household member aged 24 or under (60% in rental stress) most frequently remained in rental stress after receiving CRA. By contrast, the least common income units in rental stress after receiving CRA were those with at least one household member aged 75 years (32%) or with Disability Support Pension payments (33%). For Indigenous income units, around 2 in 5 (37%) were in rental stress with CRA (Figure FINANCIAL.4; Table CRA.8).

Figure FINANCIAL.4: Income units receiving Commonwealth Rent Assistance in rental stress by special needs group and states and territories, 2022

Alt text: Figure FINANCIAL.4: Income units receiving Commonwealth Rent Assistance in rental stress, by special needs group and by states and territories, at June 2022. This vertical bar graphs compares special needs groups income units in rental stress (i.e., paying more than 30% of their income on rent) with CRA and without CRA. Nationally, 74% of income units receiving Disability Support Pension without CRA were in rental stress compared with 81% of income units aged 24 years and under.

Of the special needs groups, income units aged 25 and under (60%), followed by Indigenous income units (37%) were most commonly in rental stress after receiving CRA. There was some variation between the states and territories.

Among the special needs groups, the proportion of income units in rental stress with CRA also differed across the states and territories. In 2022 (Figure FINANCIAL.4; Table CRA.8):

  • The Australian Capital Territory had the largest proportion of income units in rental stress who were aged 24 years and under (80%) and Indigenous (45%) respectively.
  • Victoria (35%) had the largest proportion of income units receiving a Disability Support Pension in rental stress; Tasmania had the lowest (25%).
  • South Australia and Tasmania had the lowest proportion of income units aged 75 years or over in rental stress (24%).

Special needs groups changes over time

The changes to the proportion of CRA income units who were in rental stress after receiving CRA differed by special needs groups and states and territories but has generally been stable over time (except for 2020). From June 2013 to June 2022 (Figure FINANCIAL.5; Table CRA.8):

  • The proportion of income units aged 75 and over experiencing rental stress was more than 30% for the first time in 2021 (32%) and has continued into 2022.
  • While the number of income units in rental stress with a person aged 24 and under decreased from 97,600 to 60,900, the proportion in rental stress increased from 58% to 60%.

Figure FINANCIAL.5: Income units receiving Commonwealth Rent Assistance in rental stress by special needs group and states and territories, 2010 to 2022

Alt text: Figure FINANCIAL.5: Income units receiving Commonwealth Rent Assistance (CRA), in rental stress, by special needs group, 2013 to 2022. This line graph shows that rental stress (i.e., paying more than 30% of income on rent) different between the special needs groups. Income units aged 24 and under consistently (except in 2020) had the highest proportion between June 2013 and 2022, with around 57% to 60% of income units in rental stress after CRA. The next highest proportion of income units in rental stress after receiving CRA was Indigenous income units, with 37%; an increase from 30% in 2013. Likewise, the proportion of people aged 75 years and over in rental stress after receiving CRA has increased from 24% in 2013 to 32% in 2022. The proportion of income units receiving Disability Support Pension in rental stress after receiving CRA increased from 30% in 2013 to 33% in 2022

Primary payment type

Rental stress among income units receiving CRA varied depending upon the primary payment type. In 2022 (Figure FINANCIAL.6; Table CRA.9):

  • Over 3 in 4 (75%) income units receiving Youth Allowance (Student and Apprentice) were in rental stress.
  • Almost 2 in 3 (63%) income units receiving JobSeeker were in rental stress.
  • Around 1 in 3 income units receiving an Age Pension (37%) or Disability Support Pension (33%) were in rental stress.

Primary payment type and state and territory

The proportion of income units receiving CRA who were in rental stress varied depending upon the state or territory and primary payment type. In 2022 (Figure FINANCIAL.6; Table CRA.8):

  • The Australian Capital Territory (68%) and New South Wales (67%) had the highest proportion of income units receiving JobSeeker Payment in rental stress. Tasmania had the lowest but still half of income units (50%) were in rental stress.
  • The proportion of income units in rental stress receiving Youth Allowance (Student and Apprentice) ranged from 66% in South Australia to 88% in the Australian Capital Territory.
  • The Australian Capital Territory also had the highest proportion of income units in rental stress receiving Parenting Payment (Partnered) (80%), Youth Allowance (Other) (68%), and Parenting Payment (Single) (57%) and Carer payment (43%).

Figure FINANCIAL.6: Income units receiving Commonwealth Rent Assistance in rental stress by primary payment type and states and territories, 2013 to 2022

Alt text: Figure FINANCIAL.6: Income units receiving Commonwealth Rent Assistance in rental stress, by primary payment type and states and territories, 2013 to 2022. The horizontal bar graph compares income units receiving CRA in rental stress by primary payment types and states and territory. The graph shows that of the primary payment types in 2022, 75% of income units receiving Youth Allowance (Student & Apprentice), 72% of income units receiving Austudy and 68% of income units receiving Parenting Payment (Partnered) remained in rental stress after receiving CRA.

Private Rent Assistance (PRA)

Private rent assistance (PRA) is a form of financial assistance provided by state and territory governments to low-income households experiencing difficulties with securing or maintaining private rental accommodation. PRA is typically provided once, as either a bond loan or a rental grant. However, state and territory governments may offer different types of support that others do not. For example, ongoing rental subsidies are only offered in New South Wales and relocation expenses are only offered in Tasmania and the Australian Capital Territory. For more information, see the Data quality statement for PRA.

In 2021–22, about 56,900 households received PRA, falling from 62,900 in 2020–21 and 92,600 in 2019–20 (Figure FINANCIAL.7; Table PRA.1).

Government policy responses to the COVID-19 pandemic likely had an impact on PRA. Many jurisdictions introduced initiatives including moratoriums on rental evictions and prevention of rent increases. Pandemic-related assistance may have been provided to households but is out of scope for the PRA collection.

As PRA is demand driven, decreases do not necessarily reflect a lack of resources or changes to eligibility criteria. The overall rental market may have had an impact on the decline in PRA recipients in 2021–22. For example, reduced vacancy rates may result in reduced movement of tenants, potentially reducing the number of PRA applicants. Further, an increase in the total number of applicants for rental vacancies more broadly may reduce the likelihood of a PRA recipient to secure tenancy.

Key characteristics of households

Of the 56,900 unique households receiving PRA, most were aged between 25-44 (55%), and non-Indigenous (77%), and had a gross weekly income below the national minimum wage (55%).

The main source of income for most (75%) households receiving PRA was from some form of government payment. In particular, the government payments most households were receiving were from (Table PRA.4):

  • Jobseeker (21%),
  • Other Government pension/allowances (19%) and,
  • Disability Support pension (17%).

By contrast, about a quarter (23%) of households’ main income sources were from an employee's income.

State and territory

Although all states and territories provide bond loans, the other types of PRA provided to households differed with each state and territory. In 2021–22 (Table PRA.2):

  • Queensland (14,400) provided the greatest number of bond loans and PRA payments overall (18,900).
  • South Australia provided the highest number of one-off rental grants (8,600).
  • New South Wales provided ongoing rental subsidies to around 7,500 households. No other state or territory provided these subsidies.

Figure FINANCIAL.7: Households receiving Private Rent Assistance and Home Purchase Assistance by states and territories, 2013–14 to 2021–22

Alt text: Figure FINANCIAL.7: Households receiving Private Rent Assistance and Home Purchase Assistance, by states and territories, 2013–14 to 2021–22. This line graph shows the number of households receiving Private Rent Assistance and households receiving Home Purchase Assistance from 2013–14 to 2021–22 by states and territories. Nationally, the number of households receiving PRA has declined over time, with 62,900 households in 2021–22 compared with 94,100 households in 2013–14. Conversely, the number of households receiving HPA has remained relatively stable nationally, with 43,300 households receiving HPA in 2021–22 compared with 42,800 in 2013–14.

Remoteness

In 2021–22, more PRA payments were made to households in Major cities (64%) than in inner regional (22%) and outer regional (13%) areas. By contrast, less than 2% of the PRA payments were made to households located in Remote (1.3%) or Very remote (0.5%) areas (Table PRA.3).

Home Purchase Assistance (HPA)

Home Purchase Assistance (HPA) is a form of financial assistance provided by state and territory governments to eligible households to improve their access or ability to maintain home ownership. HPA can include:

  • direct lending
  • concessional loans
  • mortgage relief
  • interest rate assistance
  • deposit assistance
  • other assistance grants.

The type of home purchase assistance products available to households can differ across the years, and states and territories. Some products were only offered in certain states and territories or were no longer offered to new households. This section presents information on the new households who received HPA in 2021–22 and households who received HPA in the previous years who were still paying off their HPA-related loan in 2021–22.

Almost 43,300 households in Australia received HPA or were paying off an HPA‑related loan in 2021–22. Almost three-quarters (73% or 31,600) of the households were located in Major cities. The most common form of HPA was direct lending (39,000), which was provided in all the states and territories except Tasmania.

Of the 43,300 total households, most were households that were paying off an HPA‑related loan (90% or 38,800) commenced before 2021–22. By contrast, new households who received HPA in 2021–22 made up 10% (or 4,500) of the total households (Figure FINANCIAL.7; Tables HPA.1;2;3).

Key characteristics of households

Of the 43,300 households receiving HPA in 2021–22 (Table HPA.4):

  • Households with a main applicant aged 25–34 years (23% or 10,000), 35–44 years (27% or 11,700) and 45–54 years (22% or 9,400) made up most of the households receiving HPA.
  • Over 1 in 5 (22% or 9,700) households earned a gross weekly income that was below the 2021 national minimum wage of $776.20 (FWO 2021).

State and territory

In 2021–22, Western Australia (23,100 households) and South Australia (18,100) had the highest number of households receiving HPA. Together, the two states contributed 95% of the households receiving HPA (Table HPA.1). Direct lending was the main type of HPA provided in these areas. About 2,600 and 1,500 new households received HPA in Western Australia and South Australia, respectively (Table HPA.2).

Glossary

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