‘Under the pump’: One million renters to get taxpayer-funded relief

Those receiving rent assistance will now benefit from the first-ever back-to-back increase.

Anthony Albanese is set to boost the maximum rate of rent assistance this week, with the first-ever back-to-back increase delivering a modest $23 a fortnight boost for nearly one million renters.

Designed to help battlers that are “under the pump” as a result of rising cost of living pressures, the government’s modest changes will contribute an extra $600 every year to the budgets of eligible low-income families.

However, when combined with the government’s previous increases, rent assistance will have increased by $65.40 for single-person households and up to $86.80 for households with children since the government was elected.

The Australian government plans to increase the maximum rate of rent assistance by $23 per fortnight for nearly one million renters. Picture: NewsWire / Martin Ollman

For families, that means some eligible renters are now receiving a $2,000 increase in annual rent assistance since the 2022 election. The same eligible families are now receiving up to $5000 a year in rental assistance.

“We recognise that people are under the pump and we’re doing something about it,’’ the Treasurer Jim Chalmers said.

“The Liberals couldn’t care less about renters, pensioners or people on income support payments but Labor does and that’s why we’re providing more relief.

The changes are aimed at providing relief to low-income families facing rising living costs, with rent assistance set to increase by $65.40 for single-person households and up to $86.80 for households with children. Picture: Newswire /Gaye Gerard

“We’re already rolling out tax cuts and energy rebates and from today we’ll give people more help to pay the rent and deliver an increase to pensions and payments including the age pension.”

Rent thresholds and the maximum amount of Rent Assistance are adjusted twice-yearly, in March and September, in line with movements in the cost of living.

Who qualifies for rent assistance?

According to Services Australia, your minimum fortnightly rent costs must be between $146 and $472.87 to qualify for rent assistance.

The maximum amount of rent assistance applicants can receive fortnightly is between $125.47 and $188.20.21 for singles but it can rise to over $200 a fortnight depending on the number of children you care for in your home.

To qualify for rent assistance, individuals or families must meet specific rent cost criteria and be eligible for certain social security payments or veterans’ benefits. Picture: Services Australia

Around 1.4 million Australians qualify for rent assistance, and around 900,000 of them are eligible for the maximum rate of rent assistance.

In order to qualify for Rent Assistance, a person or family must qualify for an eligible social security payment, more than the base rate of Family Tax Benefit Part A, or an eligible Department of Veterans’ Affairs service pension, income support supplement or veteran payment, and pay or be liable to pay more than a minimum amount of rent, called the rent threshold, for their principal home.

Under the changes rent assistance will be increased by a further 10 per cent plus indexation, which will benefit nearly a million households around the country.

The upcoming changes, combined with indexation, will result in a 45 per cent increase in maximum rates of Rent Assistance since the current government took office. Picture: Services Australia

Treasurer Jim Chalmers said that when combined with indexation, maximum rates of Rent Assistance have been up 45 per cent since the Albanese Government came to office.

September will also see the latest round of payment indexation, including for the Age Pension, Disability Support Pension, Jobseeker, Carer Payment and Parenting Payment, which is set to benefit more than five million households.

As of July, more than 91,000 single parents – mainly women – are benefiting from the Government’s 2023 changes to expand eligibility for Parenting Payment Single to parents until their youngest child turns 14.