The shocking cost of rent for Aussies on the Disability Support Pension

Key points:

• Australians receiving the Disability Support Pension spend 81 percent of their income on rent according to data from the recently released Everybody’s Home report
• Everybody’s Home Spokesperson Maiy Azize highlighted that even with the increase to the Disability Support Pension, the government needs to improve ways to ‘protect renters’
• Australians with disability may have an increased likelihood of financial hardship due to increased costs related to medical care and personal support

Many Australians with disabilities are still struggling to meet the country’s rising housing costs, despite the government having recently increased Disability Support Pension payments.

A single person with disability can now receive a maximum of $1,144.40 dollars fortnightly. Before the increase, they would receive a fortnightly payment of $1,116.30 dollars. This is an increase of $28.1 dollars each fortnight, effective as of September 20, 2024.

Additionally, eligible single Australians, including those receiving the Disability Support Pension, can receive fortnightly Commonwealth Rent Assistance of $211. Even with this payment, a single person with disability has $678 dollars to use for rent and other living expenses.

Australians receiving the Disability Support Pension spend an average of 81 percent of their weekly income on rent as the average weekly rent is $547 dollars for accommodation across Australia, according to the Priced Out report recently released by Everybody’s Home.

Everybody’s Home, a national campaign, was launched in 2018 to combat the housing crisis affecting Australians all across the country. More than 500 organisations and 43,000 Australians support the campaign, including government officials such as Prime Minister Anthony Albanese and Minister for Health Mark Butler. 

Maiy Azize, a spokesperson for Everybody’s Home, commented on the concerning housing trend affecting some of Australia’s most vulnerable people.

“People on the lowest incomes are falling through the cracks — they’re becoming homeless, share-housing well into their adult years, living in overcrowded homes and unable to move out of the family home because there simply isn’t enough affordable housing for them,” she said.

“Even if they are willing to leave their communities, the pursuit to find and secure an affordable home elsewhere is dire.

“We need a huge boost to social housing — the shortfall today is 640,000 homes and within two decades it’s set to reach close to one million. This desperate need for social housing doesn’t go away by hoping the private market will make homes affordable. That is the status quo and it is clearly failing.”

Approximately 769,000 Australians aged 16 years and over received the Disability Support Pension in 2023 according to recent data from the Australian Institute of Health and Welfare.

Ms Azize highlighted that the government must put additional measures in place to ensure that low-income Australians, such as those receiving the Disability Support Pension, are not left behind.

“To make housing more affordable for more Australians, the federal government must increase Centrelink payments, protect renters from unfair rent increases, scrap unfair tax handouts to property investors and create much more social housing,” she said.

“The time for real action on housing affordability has never been greater but it will only get worse without it.”

However, it’s not only people receiving the Disability Support Pension who may struggle with rent and mortgage costs. 

Some Australians with disability may have an increased likelihood of financial hardship, compared to people without disability who earn the same amount of money. 

Factors contributing to this may include costs of medical care, personal support and certain transport related to their disability needs.

Approximately 25,900 clients who received support from specialist homelessness services in 2023 live with disability.

Read more about why people with disability may find it more difficult to pay for housing compared to peers without disability in this article: Extra costs for Aussies with disability could cause mortgage payment problems.

If you are experiencing financial hardship or debt, contact free financial counselling services such as the National Debt Helpline by calling 1800 007 007 or by visiting their website. 

Alternatively, free mental health support is available at the Beyond Blue website and by calling 1300 22 4636.

How have recent rent increases impacted you?

Let the team at Talking Disability know on social media. 

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