1 Sep 2020

Anglicare Southern Queensland is calling for the Australian Government’s planned decreases in COVID-19 welfare supplements to be abandoned.

The not-for-profit charity’s call comes on the back of its second Greater Brisbane Rental Affordability Snapshot for the year, which assessed the impact that decreased government payments after September would have on low income earners and people on income support.

The special edition of the Snapshot found that decreasing welfare payments would have the same dire effect on affordability as did the $40/day Newstart allowance, despite an expansion of 20% in the Greater Brisbane rental market and consequent increase in vacancy rates since April 2020.

On the old Newstart rates, there would currently be only 258 (4%) properties in Greater Brisbane affordable and appropriate for households on government support.

The proposed decrease in COVID-19 supplements has almost the same grim impact on affordability for these households, with only 271 (4%) of rentals that would be available.

By maintaining the full Corona supplement, a total of 405 (6%) Brisbane households on income support would find appropriate private rental sector housing more affordable in the current market.

Executive Director Karen Crouch said that maintaining the full rate of COVID-19 payments would make all the difference to those households.

“No one should have to make a decision between paying rent or putting food on the table,” Ms Crouch said.

“Keeping the Covid allowances at the current rate acknowledges that times are still tough for many, and that people and businesses will be recovering from this downturn for years”.

The August Snapshot figures show that even with the increased payments, overall rental affordability in Greater Brisbane continues to be dismal.

More than 85% of households on minimum wage also fail to find affordable, appropriate rental accommodation — a figure consistent with the national percentage of 13%.

“Over more than ten years, the Snapshot has shown us the extent to which Australia’s rental sector continues to fail people on low incomes,” Ms Crouch said.

“If income support rates are reduced in September — and if those who are most vulnerable continue to be left out — people will be pushed again or further into financial stress.

“As we said in March: These increases must become permanent, and they must go to everyone in need”.