Concerns Rise Over Retired Australians Struggling with Rental Costs
Concerns are growing over the challenges faced by retired Australians who rent, with many living in poverty. The Grattan Institute calls for an increase in Commonwealth Rent Assistance to help alleviate the crisis.
Significant concerns have been raised about the number of retired Australians struggling in their twilight years as they rent. The Grattan Institute has found two in three older renters - like pensioner Debra Basham - are living in poverty, with the crisis "set to get worse" if the issue isn't addressed.
The 67-year-old has missed meals as she doesn't have enough money to cover her bills and feels in a constant state of "struggle". The Grattan Institute has called for another increase to Commonwealth Rent Assistance (CRA), which last went up in September.
However, NSW Tenants Union CEO Leo Patterson Ross told Yahoo Finance another cash boost won't solve the problem if wider issues in the rental market are not tackled.
"Unless you do something about rent prices, you're always chasing increasing rents," he said.
"A 10 per cent increase in Rent Assistance is kind of helpful, but if rent went up 20 per cent, you're still behind.
"You also have to be already receiving Centrelink payments and already be in a home to be eligible. So, that means there's a whole bunch of people who should be getting more support but aren't."
More than 165,000 Australians aged between 55-64 receive Commonwealth Rent Assistance.
Rent has risen dramatically across all capital cities over the last four years, according to Domain.
Weekly rent in Sydney has risen by up to $540, in Brisbane it's gone up by $410, while Perth has seen a $390 jump.
While this has stabilised, experts have said prices are not set to drop.
The CRA last increased in September by 10 per cent thanks to a measure contained in the 2024-25 Federal Budget, which gave single people between $12 to $19 extra per fortnight.
The issue for pensioners is that those who take the Centrelink payment have faced an increase in rent of 1.5 times the maximum CRA payment rate since 2001, the Grattan report found.
"Even after these increases, a single retiree who relies solely on income support can afford to rent just 4 per cent of one-bedroom homes in Sydney, 13 per cent in Brisbane, and 14 per cent in Melbourne," it said.
"Australia is failing too many retirees who rent. Only a further substantial boost to Rent Assistance can ensure that all Australians get the dignified retirement they deserve."
