A recent study conducted by the Australian Council of Social Service (Acoss) reveals a stark disparity in Australia’s housing funding priorities, with tax concessions for property investors projected to cost a staggering $12.3 billion in 2025. In contrast, the total expenditure allocated to vital housing assistance programmes, including social housing, homelessness services, and rent assistance, amounts to only $9.6 billion. This alarming trend highlights the ongoing affordability crisis as Australia grapples with an increasing number of individuals and families facing housing insecurity.
Tax Breaks Versus Housing Assistance
The Acoss report underscores a troubling reality: the financial relief afforded to landlords far surpasses the government’s investment in social housing. New figures from the Productivity Commission indicate that the proportion of homes designated for social housing has plummeted to a record low of 3.6%, a decline from 5.7% in the 1990s. This sharp reduction coincides with soaring rental prices and an expanding waitlist for public housing, currently sitting at approximately 190,000 households—an increase from 169,000 in 2024 and up from 141,000 in 2018.
Jacqueline Phillips, Acoss’s acting chief executive, stated, “This report shows housing stress and homelessness are getting worse while absurdly generous tax breaks drive up home prices and supercharge inequality in our society.” The findings come at a critical time, following a recent call from the OECD urging the Albanese government to enhance its investment in social housing.
The Impact of Rising Rents
The data further reveals a concerning trend regarding rental affordability. The median asking rent has surged by 43% over the past five years, now averaging $681 per week. As a result, households are dedicating an unprecedented one-third of their income to rental payments. This financial strain is particularly acute among low-income Australians, pushing many into a state of housing stress.
Maiy Azize, the national spokesperson for Everybody’s Home, expressed that the prolonged housing crisis has become a troubling norm. “People have just gotten used to it, they’ve gotten used to existing in this constant state of rental stress,” she noted. Alarmingly, the proportion of households classified as in “greatest need”—those either homeless or at risk of homelessness—has escalated from 26% to 41% of the public housing waitlist over the past decade.
Calls for Reform
As the government faces mounting pressure to address these disparities, there is a growing consensus among advocates that reforms are essential. Phillips has urged the Albanese administration to reconsider its approach to capital gains tax concessions and negative gearing, suggesting that redirecting these funds towards ambitious social housing targets could alleviate some of the mounting pressures on vulnerable populations.
Despite Australia’s status as one of the wealthiest nations globally, the current social housing provision is approximately half the OECD average. The stark decline in new social housing developments—now accounting for less than 2% of homes built annually, compared to 15% in the 1970s—suggests that without immediate intervention, the situation will only deteriorate further.
Why it Matters
The findings from the Acoss research illuminate a critical junction in Australia’s housing policy landscape. With an increasing number of individuals and families grappling with housing insecurity, the prioritisation of tax breaks for landlords over essential social housing funding raises profound questions about equity and social justice. As the government weighs its options, the urgency for reform has never been clearer. The choices made in the coming months will not only shape the future of housing in Australia but will also determine the level of support extended to the most vulnerable members of society.
