Despite an increase in overall housing and homelessness funding, the percentage of ACT residents receiving Commonwealth Rent Assistance (CRA) payments who are in rental stress has topped any other state or territory for the past five years.

The latest Report on Government Services (ROG) for the housing and homelessness sector revealed 53.9 per cent of CRA recipients in the ACT spent more than 30 per cent of their wage on rent in 2022.

This number is slightly lower than in 2021, when 55.1 per cent of ACT CRA payment recipients experienced rental stress, but a significant jump from 35.8 per cent in 2020.

Pre-pandemic, the numbers were 48.3 per cent in 2019 and 47.9 per cent in 2018.

The ACT has recorded the highest percentage of CRA recipients in rental stress for each of the five years between 2018 and 2022.

For Aboriginal and Torres Strait Islander residents in the ACT receiving CRA, 44.9 per cent are in rental stress – also the highest percentage of all Australian states and territories.

The total expenditure by Australian, state and territory governments in social housing and specialist homelessness services was $5.9 billion between 2021-22, an increase of 1.9 per cent from the previous 12 months.

However, the federal government reduced CRA expenditure to $4.9 billion in 2021-22, down from $5.5 billion in 2020-21.

‘The payment isn’t enough’

Spokesperson for Everybody’s Home, Maiy Azize, said the CRA payments “must be reformed”.

Ms Azize said the payments can be a “lifeline” for renters who are struggling under the pressure of soaring rents.

To ensure tenants aren’t “plunged into homelessness” with the housing crisis “at fever pitch”, the government needs to increase support, she said.

The maximum fortnightly payment a single person can currently receive is $151.60 and it’s been a decade since there was a “real boost” to the CRA, Ms Azize said.

“These figures show the payment isn’t enough to lift people out of housing stress.”

The fortnightly payment has lagged behind rising rents and it’s “no wonder” almost one in two people receiving CRA are still in rental stress, she said.

Calling on the federal government to increase the CRA payments by at least 50 per cent, along with amending the payment, would ensure “the people who need help most can get it,” Ms Azize said.

Additionally, she said Australia needs a long-term commitment to build social housing. The ROG numbers show social housing spending is falling.

“If they’re going to fix the housing crisis, the federal government is going to have to step up and build the social and affordable rentals that people need,” Ms Azize said.

Liberals MLA Mark Parton blames ACT government

Canberra Liberals Shadow Minister for Housing, Mark Parton MLA, said his party knew this would happen and it’s “reflective of a government failure in this space”.

“What we’re seeing here is a combination of Labor-Green policies that have combined to create a perfect storm in housing unaffordability and a rental crisis,” Mr Parton said.

He said the ACT government’s policies for the four pillars of homelessness – land supply, land tax, tenancy legislation, and community housing providers – are the causes of the territory’s statistics in the ROG report.

Mr Parton said that 53.9 per cent of Canberran CRA recipients being in rental stress is “really concerning” but the upcoming changes to the Residential Tenancies legislation are “even more concerning”.

He claims the ACT government’s messaging that this will “look after renters” is not accurate; the ROG data shows it’s “doing the exact opposite” and will create more homelessness.

In response to this data, Mr Parton said “I can guarantee you that under a Canberra Liberals Government rents will go down, we will provide hundreds of social and affordable dwellings than the current government, and I would also say this: which side of politics do you think is more likely to have the available cash to deal with the situation? Would you think it could be the side that’s building a $3 billion inefficient tram or the side that isn’t?”

When asked how his party plans to pay for the additional dwellings, Mr Parton said he will be making an announcement on the Liberals housing budget closer to the 2024 ACT election.

ACT Government: Increasing CRA ‘should be considered’

An ACT Government spokesperson said housing affordability is not a unique issue to the ACT and is instead a national problem.

The spokesperson said an increase of the CRA is “something that should be considered as part of a national housing and homelessness strategy to provide more support for Australians in rental stress.

They also stood by the ACT Government’s housing policies and rejected Mr Parton’s claims.

“The Public Housing Renewal Program, which ran from 2014-2019, renewed 1288 homes across Canberra to make them more accessible, easier to heat and cool and better suited for current and future tenants. We also built light rail from the City to Gungahlin,” the spokesperson said.

“The program is providing a significant boost to the number of social housing properties available and reflects the ACT Government’s unprecedented program of public housing renewal, representing more than $1.2 billion investment over 10 years from 2015, and the renewal of over 20 per cent of the ACT public housing portfolio.”

Canberra a ‘tough place to be renting’

Executive Director of Better Renting, Joel Dignam, said while the CRA is effective at lowering the rate of rental stress, it’s clearly a problem given the number of recipients still falling into the category.

Mr Dignam said the issue in the ACT is the payments are too low and the rents are too high.

“Rents in Canberra are higher than in other cities, and while they may be relatively affordable for people on higher incomes, it’s a really tough place to be renting when you are on a low income.”

He said the “evidence” disagrees with Mr Parton that the changes to the ACT Residential Tenancies legislation are contributing to the ACT’s statistics.

He referenced a report by the Australian Housing and Urban Research Institute Limited which he said found “no evidence” legislative changes force investors out of the market.

“If you support good homes for renters, you should support good tenancy laws,” Mr Dignam said.

He said the ACT government have more work to do in looking at restrictions on excessive rent increases while the federal government could increase rent assistance public housing, and federal finance minister, ACT Labor Senator Katy Gallagher, could reconsider cancelling the ACT’s public housing debt.

Canberra Daily has contacted ACT Minister for Housing Yvette Berry’s office for comment.

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