Few measures in budget to help renters

Treasurer Scott Morrison had said before the budget that it would be a budget that remembers the renter, but very little was said during its presentation on May 9 except that the government was working with state and territory governments to “standardise use of long-term leases”.

It said the measure would provide “more security for renters”. 

But in practice, there is no increase in rent assistance to help low-income renters in the private rental market.

For the majority of Australia’s renters, housing will remain unaffordable, insecure and out of reach, according to Emma Power, a senior Research Fellow at Western Sydney University.

Morrison had said before the budget that, “You have got to remember that over 30% of Australians actually live in homes that are rented, and when people are finding it hard to get into the housing market that puts a lot more pressure on the rental market.”

Affordable housing has an important place in the housing system. However, below-market rents in central, work-rich regions are still extremely high and out of reach for many.

Of more concern, it is unlikely that many of these lower-income workers would be able to maintain their high rents at retirement. This generates two risks:

• that the renter is evicted and forced to find housing on the private market, which puts them at high risk of homelessness
• that the housing provider continues their commitment to house the tenant securely once their income drops, so the risk here is to the housing provider’s bottom line.

They will face a loss of income, as they drop rents from 80 percent of market value to around 30 percent of the retired person’s pension.