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Adelaide’s ‘Highest Rate of Rental Stress’ Cause for Concern

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Adelaide’s ‘Highest Rate of Rental Stress’ Cause for Concern

25 Oct 2011 | Social Inclusion

Greens’ spokesperson for Social Inclusion, Senator Penny Wright, is alarmed by a report that Adelaide has the highest rate of Commonwealth Rent Assistance recipients experiencing rental stress in Australia.

68% of Commonwealth Rent Assistance recipients living in Adelaide are experiencing rental stress according to a study, Housing Costs through the Roof: Australia’s Housing Stress by the National Centre for Social and Economic Modelling at the University of Canberra.

“It's usually people on benefits or pensions who receive Rent Assistance. This study shows that nearly 70% of them are finding their payments just aren't adequate to keep the wolf from the door,” Senator Wright said.

Housing stress is defined as households on the lowest 40 % of equivalised household incomes who spend more than 30 per cent of their income on housing costs.

“When you take people on the lowest 40% of incomes spending more than a third of their income on housing, it’s clear they must struggle to meet the other basic costs of living,” Senator Wright said.

"When we consider that Newstart recipients have $295 a week to live on (including rent assistance), it's not surprising they don't have much left over once they've paid their rent.

"According to the report, 46,000 South Australian households are experiencing housing stress. After paying for housing costs these are the families who are most at risk of the degrading daily grind of financial hardship and poverty.

“All sectors of government must address this crisis through strong policies to promote social and public housing and housing affordability.

“Alleviating rental stress will alleviate poverty and that is good for all of us. When people can participate fully and with dignity in community life we all benefit."

Media contact – Anna Chang 0417 173 508