More than 1 million Australians receiving Commonwealth rent assistance will receive a 15 per cent increase in their fortnightly payment, as part of a package of budget measures the government hopes will boost supply and provide relief to low-income renters.

In one of the largest new spending measures in Treasurer Jim Chalmers’ second budget, Labor will outlay $2.7 billion over four years to increase the maximum rate of rent assistance by up to $31 per fortnight.