Starting August 1, 2025, the Australian government will implement a 15% increase in Commonwealth Rent Assistance (CRA) payments. This adjustment aims to alleviate the financial burden on low-income Australians amid escalating rental prices.
The enhancement is part of a broader strategy to address housing affordability and reduce rental stress across the nation.
Updated Rent Assistance Rates
The forthcoming changes will adjust the maximum fortnightly CRA payments as follows:
| Household Type | Current Max Payment | New Max Payment (from Aug 2025) |
|---|---|---|
| Single without children | $184.80 | $212.52 |
| Single with children | $217.20 | $249.78 |
| Couple, no children (each) | $174.00 | $200.10 |
| Couple with children (each) | $206.00 | $236.90 |
Note: These figures are approximate and may vary based on individual circumstances and rental agreements.
Eligibility Criteria for Rent Assistance
To qualify for the increased CRA payments:
- Receive a qualifying government payment, such as:
- Age Pension
- JobSeeker Payment
- Youth Allowance
- Parenting Payment
- ABSTUDY Living Allowance
- Disability Support Pension
- Carer Payment
- Special Benefit
- Family Tax Benefit Part A
- Pay rent in:
- A private rental agreement
- Boarding house
- Community housing
- Retirement village
- Caravan park or mooring site
- Pay rent above the minimum threshold set by Centrelink.
- Not own or partly own the home you live in.
The amount of assistance depends on the rent paid and the individual’s living arrangements. Higher rent payments typically result in higher assistance, up to the maximum limit.
Application Process
For current recipients of CRA, no action is required; the increased payments will be applied automatically from August 1, 2025.
If your circumstances have changed or you believe you now qualify for CRA, you should:
- Update your details via the myGov portal.
- Contact Centrelink through their support lines.
- Visit your nearest Services Australia office.
Ensure your rental information, including rent amount and lease details, is current to avoid delays or incorrect payments.
Impact on Australians
The increase in CRA is a response to the growing rental crisis in Australia. With over 40% of low-income households experiencing rental stress—defined as spending more than 30% of income on rent—this adjustment aims to provide financial relief and promote housing stability. It’s anticipated to reduce homelessness rates and improve the quality of life for vulnerable populations.
The upcoming increase in Commonwealth Rent Assistance reflects the Australian government’s commitment to supporting low-income renters amid rising housing costs.
By easing financial pressures, this initiative aims to enhance housing stability and reduce rental stress for vulnerable Australians.
FAQs
Do I need to reapply to receive the increased Rent Assistance?
No. If you’re already receiving CRA, the increased payments will be applied automatically from August 1, 2025.
What if my rent amount changes after August 1, 2025?
You should promptly update your rental details with Centrelink to ensure you receive the correct payment amount.
Can I receive Rent Assistance if I live in shared accommodation?
Yes, but the amount may differ. For instance, single sharers have specific rates. It’s essential to provide accurate information about your living arrangements to Centrelink.