Controversy over $280 Centrelink cash boost for struggling pensioners 'set to get worse'
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."
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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."
Ross told Yahoo Finance that 10-15 per cent increases are nowhere near enough.
"Most of the calls from the community and from Grattan are at more like the 40 to 50 per cent level. And so there's definitely scope for rent assistance to rise to that level," he said.
Boosting CRA by up by 50 per cent would take the maximum rate up by $53 per week or $2,750 per year for singles, and $40 per week or $2,080 per year for couples.
Grattan said this would allow retirees to afford up to $350 per week on rent, while retired couples could afford $390 per week, which would be enough to rent the cheapest 25 per cent of all one or two-bedroom homes in Aussie capital cities.
These increases, which would also help everyone on CRA, not just retirees, would cost taxpayers $2 billion per year.
The housing crisis in Australia has forced many Australians to rent as they can not afford their mortgage in retirement, or could not get into the market at all.
Women aged over 55 are of particular risk of homelessness in Australia, with many in precarious rental situations.
Some have lost their family home in separation after being primary carers for children, diminishing their earning and ability to build a superannuation nest egg.
Basham retired from her job as a cleaner last year and has since found it difficult to cover her bills.
"You just struggle," she told The Project.
"I've got animals, I feed them first, and if I've got nothing left, then I go without.
"If I've got a slice of bread, I'll just have a slice of bread for tea."
National Seniors Association CEO, Chris Grice, told Yahoo Finance that too many retirees are facing uncertain futures due to this trend.
'Housing security and affordability is a huge concern for many older Australians, with an increasing number of older people unable to afford their own home and relying on the precarious and competitive rental market," he said.
The association is not only calling for the rate of CRA to be lifted but for its indexation to be tied to changes in rental prices, rather than overall inflation.
The CRA program is only accessible to Australians receiving the following social security payments:
ABSTUDY - Living Allowance
Age Pension
Austudy
Farm Household Allowance
JobSeeker Payment
Special Benefit
Youth Allowance
To be eligible for assistance, you need to meet minimum rent payment requirements.
Situations also change depending on how many people you live with and if you have any dependants.
The maximum fortnightly payment for a single person living alone is $188.20 every two weeks, or $125.47 for a single person in a share house.
You can find the requirements here.Sign in to access your portfolio
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