Young renters falling behind as rent rises outstrip income support increases

Homelessness Australia

Young renters who receive income support in Brisbane and Perth are doing it tougher now than they were a year ago, despite receiving income support increases in the 2023 Budget, with other young renters grappling with a rental affordability crisis that has barely improved.

A new Homelessness Australia analysis cross referencing youth income support against the cost of rentals has prompted urgent calls for increases to income support to tackle the crisis. In its submission to the forthcoming Commonwealth Budget, Homelessness Australia calls for Youth Allowance and other benefits to be increased to the aged pension rate of $80 a day, along with a 60 per cent increase to Commonwealth Rent Assistance.

The analysis finds a 16-17 year old sharing a property in Brisbane now forks out 83 per cent of their income compared to 76 per cent one year ago. In Perth the proportion of income has also increased from 74 per cent to 76 per cent. Sydney has barely improved, declining from 99 per cent to 94 per cent, while in Melbourne, there was also a small decline, from 78 per cent to 73 per cent.

Total weekly income 16-17 yr old sharer Mar 2023

Total weekly income 16-17 yr old sharer Mar 2024

/Public Release.