$2B Urgent Boost Needed for Centrelink Rent Assistance as Pensioners Skip Meals: ‘Crisis to Worsen

A growing number of pensioners across Australia are struggling to afford basic necessities as soaring rental costs outpace government support, forcing some retirees to skip meals or face homelessness. Leading policy experts and advocacy groups are now urging the federal government to boost Commonwealth Rent Assistance (CRA) by $2 billion annually to address the crisis.

Rising Rents, Shrinking Support

The current maximum fortnightly CRA payment stands at $211.20 for singles and $199 for couples combined. However, these figures have failed to keep pace with rising rents, leaving many elderly renters in financial distress. The Grattan Institute, a prominent Australian think tank, has recommended increasing CRA by 50% for singles and 40% for couples. This would equate to an additional $53 per week for single retirees and $40 per week for couples, making rent more affordable for those on limited incomes.

According to the Australian Bureau of Statistics, rental prices have surged in major cities, with Sydney and Melbourne experiencing some of the steepest increases. Pensioners relying on government payments to cover their housing costs have been disproportionately affected, often forced to sacrifice essentials like food and medical care.

Pensioners Facing Poverty

Research indicates that two-thirds of retirees who rent privately live in poverty, with single women among the hardest hit. Housing affordability for older Australians continues to decline, with home ownership rates dropping significantly among those approaching retirement. Without substantial intervention, experts warn the situation will deteriorate further.

The problem has been particularly severe for elderly women, many of whom have limited superannuation savings due to career breaks for caregiving. According to the Australian Institute of Health and Welfare, older women are increasingly vulnerable to financial instability and homelessness, making targeted assistance crucial.

Government Response and Calls for More Action

In the 2024-25 budget, the federal government introduced a 10% increase to CRA, but policy experts argue this measure falls short of what is needed. Advocacy groups stress that an additional $2 billion is necessary to prevent pensioners from slipping further into financial hardship.

Dr. Brendan Coates, an economic policy expert at the Grattan Institute, emphasized that the proposed CRA increase would help ensure retirees can afford rent in the cheapest 25% of homes in Australian capital cities.

“This is not just about affordability; it’s about dignity. Pensioners should not have to choose between rent and food,” Dr. Coates said.

The Broader Housing Crisis

While increasing CRA is a critical step, experts argue that broader housing market reforms are necessary to tackle the root causes of rental stress. The rental market has become increasingly competitive, with limited supply driving prices higher. Advocates suggest that in addition to increasing CRA, the government should implement policies to control rent inflation and expand affordable housing options.

Some solutions proposed include:

• Expanding social housing: Investing in more public housing projects to provide secure accommodation for retirees.
• Stronger rental regulations: Implementing measures to prevent excessive rent hikes and improve tenant protections.
• Affordable housing incentives: Encouraging private developers to build more affordable housing units through tax incentives.

For more information on rental assistance and housing support, visit the Services Australia website.

What Happens Next?

With pensioners facing growing financial insecurity, pressure is mounting on the government to act swiftly. Advocates warn that without an urgent boost to CRA, many retirees will continue to suffer, and homelessness rates among older Australians will climb.

The government is expected to review social welfare policies in the coming months, and calls for a significant increase to CRA will likely be a key issue in budget discussions. Whether policymakers will heed the warnings and implement meaningful changes remains to be seen.

For now, retirees and advocacy groups continue to campaign for a fairer system that ensures Australia’s elderly population can live with dignity and security.

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