The latest 2025 Report on Government Services has laid bare Australia’s deepening housing crisis. Released on Thursday, 30 January 2025, the Productivity Commission’s findings paint a stark picture of affordability and homelessness struggles across the country.
The report reveals that 41.8% of low-income renters— even with Commonwealth Rent Assistance (CRA)—are battling rental stress and on the brink of homelessness.
The crisis is further underscored by the fact that over 50,000 Australians in urgent need of crisis or long-term housing went unaccommodated amid the housing crisis.
Meanwhile, social housing waitlists continue to swell, now standing at 223,959 households, with 109,462 classified as priority cases—a 3% increase that experts say cannot be ignored.
Urgent calls for action
Sharon Callister, CEO of Mission Australia, warns that several factors are driving more Australians into homelessness.
‘This report confirms what we’ve been warning: rising rental stress, a dysfunctional housing system, and the ongoing cost-of-living crisis are driving more people across Australia into homelessness, including those in paid work, with many being pushed into homelessness for the first time,’ Callister said.
Mission Australia is calling on the Federal Government to increase the maximum threshold for Commonwealth Rent Assistance by 60% and review rental subsidies to prevent more families from losing their homes.
‘Increasing JobSeeker and other income support payments to at least $82 a day will also help those struggling to stay housed to avoid homelessness,’ she added.
The case for higher rent assistance
Housing advocacy group Everybody’s Home is also demanding urgent changes.
‘The federal government must raise the rate of Centrelink payments like JobSeeker, and fix the problems with Commonwealth Rent Assistance. This would give a badly needed reprieve to the renters doing it the toughest,’ said spokesperson Maiy Azize.
Currently, to qualify for rent assistance:
- Singles on income support must pay at least $149 per fortnight in rent. The maximum CRA payment of $211.20 per fortnight only applies if their rent exceeds $430.60.
- Couples must pay at least $241.40 per fortnight to qualify, with the maximum payment kicking in at $506.74 per fortnight.
However, Azize argues the system is flawed.
‘The fact that more than two in five people who receive rent assistance are still in rental stress highlights the extreme cost of rents and the low rate of JobSeeker,’ she said.
‘For those who can get it, Commonwealth Rent Assistance can take the edge off rents. But the payment is unfairly designed—the people who need the most help get the least benefit, and many people aren’t eligible for any help at all.’
Housing services under strain
The demand for housing and homelessness services has surged.
Over the past three years, Mission Australia says they’ve seen a 26% spike in demand, with staff struggling to find accommodation for those in crisis due to a severe shortage of affordable housing.
With the Federal Budget approaching in March, the organisation is advocating for a National Housing and Homelessness Plan to focus on long-term solutions.
This includes a $500 million Homelessness Prevention Transformation Fund to assist people before they reach crisis point.
The group also wants a commitment to build one million new social and affordable homes over the next 20 years.
While the government has made social housing commitments, Callister warns they fall far short of what’s needed while we’re all ‘in the grips of a housing and homelessness emergency’.
‘Right now, about 640,000 households are in need of affordable housing but can’t access it,’ she stressed.
‘If we don’t build significantly more social and affordable homes, that number could rise to around a million in 20 years.’
Have you or someone you know been affected by the housing crisis? What solutions do you think could help? Join the conversation below.
