The Malinauskas Labor Government’s flawed affordable housing policy is blocking vulnerable South Australians from accessing cheap rentals and pushing tenants to the brink of homelessness.
The Affordable Housing Criteria dictates that tenants must pay no more than 30% of their income on rent to be eligible for an affordable rental property through charitable providers.
It’s an issue that 62-year-old Jakki is all too familiar with, having seen her rent almost double from 2023 and now spending more than half her $35,000 income on rent.
She wants to move to available affordable housing in her area, but the existing rules mean she would need to earn more to be eligible.
“I feel like I’ve hit a brick wall,” Jakki said.
The Housing Associations acknowledge this issue is leaving hundreds of vulnerable people like myself on the brink of homelessness, but say their hands are tied.
“The current Minister for Housing initially fobbed me off to Housing SA and has so far ignore my request to speak personally with him regarding this issue.”
Leader of the Opposition, Vincent Tarzia, said the Housing Minister cannot continue to ignore the pressing need to remove this barrier.
“I’m calling on the Government to update this policy to make it more flexible, given the tight rental market Adelaide is facing, with the least affordable rental market of any capital in the nation,” Mr Tarzia said.
“It is bureaucratic madness that this ridiculous rule is punishing people on low incomes who have seen their rent increase by up to 50% in some areas.
“We’re now in a situation where hard-working South Australians like Jakki are forced to pay 60% of their income to rent in the private market but don’t even get a look in for an affordable property.
“These tenants are happy to pay their own way, but the Government must change their outdated criteria before they find themselves homeless.”
Shadow Minister for Housing, Michelle Lensink, says the Malinauskas Labor Government could change this rule with the stroke of a pen.
“This policy defies common sense and is forcing vulnerable South Australians toward homelessness,” Ms Lensink said.
“It is absurd that Jakki can clearly afford the rent but is shut out because she doesn’t earn enough.
“This is a Government that claims to prioritise affordable housing, yet their policies are actively hurting the very people who need it most.
“Older women are the fastest-growing group at risk of homelessness, and rather than providing solutions, Minister Champion’s refusal to change long-outdated policies are making it harder for them to access secure, affordable housing.
“The Government cannot continue to ignore the thousands of South Australians struggling to keep a roof over their heads. Affordable housing should be about ensuring security and stability for vulnerable people – rules need to be changed to help them out.”
Background
Nearly 300,000 South Australian households are in mortgage or rental stress, and 68.5% of renters are struggling with costs.
Homelessness has risen 19% since 2016, with over 7,400 South Australians now without a stable home.
Meanwhile, 1,927 public housing units sit empty while families sleep rough.
Affordable rental properties are offered by a number of charitable non-government housing providers (CHPs) at below-market rent:
- Market rent for each dwelling is determined by the Valuer-General.
- The housing provider then discounts the rent by a certain percentage.
- The South Australian government determines that people who apply to become tenants must pay no more than 30% of their income on rent. This is based on a long-standing principle that households which pay more than 30% of their income are considered to be in housing stress.
