Relief fund for Canberrans in rental stress

Canberra is the least affordable city to rent in Australia, but Canberrans experiencing financial stress or hardship paying their rent can now apply for financial assistance from the ACT Government.

The Rent Relief Fund provides a one-off grant for up to four weeks rent capped at $2,500. The Fund is open until 30 June 2024.

Care, a community organisation that helps people on low to moderate incomes or in financial difficulty, will administer the Rent Relief Fund. It will also offer support services to help approved applicants manage their tenancies over the long term.

“The Fund will provide targeted, short-term support for people experiencing financial stress or hardship in the ACT’s private rental sector,” Attorney-General Shane Rattenbury said.

“The Fund is one way we are supporting vulnerable Canberrans and easing the stress for households worrying where next week’s rent will come from.”

Rental stress occurs when households pay more than 30 per cent of their household income in rent, and have liquid assets of $5,000 or less (excluding superannuation).

Severe financial hardship occurs when the household pays less than 30 per cent of their household income in rent, but have less than $3,000 in liquid assets (excluding superannuation).

Both have reached crisis point in the ACT. Canberra is the most expensive city to rent a house in Australia ($690 per week at the start of this month), the second highest to rent a unit ($560 per week), and, with greater Sydney, the most unaffordable capital city.

“Many people have simply been pushed out of the capital altogether, have had to change their life plans and live somewhere else just so they can get by,” Joel Dignam, executive director of advocacy group Better Renting, said.

Rents are high in Canberra, he explained, because higher average incomes make it harder for people on low incomes, while more demand for fewer properties means landlords can cash in on rising rents.

Canberra Liberals Mark Parton MLA, however, blames the ACT Government.

“Our housing affordability crisis has been exacerbated by the spiralling rates and land tax regime, the long-term strangulation of supply of land for detached housing, and the continual changes to residential tenancies legislation which continues to push investors out of the market,” he said.

“Mr Rattenbury’s Rental Relief Fund is a bit like an arsonist turning up to the house fire that he started with a bucket of water to help put it out.”

Better Renting welcomed the announcement of the Fund. However, Mr Dignam believes the Rent Relief Fund would go further if the government paired it with stronger protections against excessive rent increases.

“Currently, if landlords are renewing a lease, they can increase the rent by as much as they want, and renters have to just take it or leave it,” Mr Dignam said.

“A lot of people feel pressured to accept an exorbitant increase because they’re worried they’ll lose their home if they don’t. We need protections against rent increases that cover renters in this situation.”

To apply to the Rent Relief Fund, visit www.carefcs.org or call 0423 161 727.

Full story online.

- Nick Fuller

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