2 in 3 pensioners who rent in Aus are living in poverty.
Page 3 today’s Syd Daily Telegraph
RETIREES LIVING IN POVERTY
Jade Gailberger
A $2bn boost to federal rent assistance is needed as more retirees face homelessness, with two in three pensioners in the rental market living in poverty, new research shows.
The Grattan Institute report calls for the maximum rate of rent assistance to rise 50 per cent, $53 a week, for singles and 40 per cent, $40, for couples.
Lead author Brendan Coates said this would ensure single pensioners could afford to spend $350 a week on rent – enough for the cheapest 25 per cent of one-bedroom homes across capital cities – and pay for other essentials.
“Australia is failing too many retirees who rent,” Mr Coates said. “Only a further substantial boost to rent assistance can ensure that all Australians get the … retirement they deserve.”
Under the proposal, Commonwealth rent assistance would be indexed to changes in rents for the cheapest 25 per cent of rental homes in capital cities, instead of inflation.
The rent assistance increase would cost about $2bn a year.
The Grattan Institute recommended funding the boost via controversial measures such as the tightening of super tax breaks, curbing negative gearing, halving the capital gains tax discount, or counting more of the value of the family home in the age pension assets test.
The report found “two in three retirees who rent … live in poverty, including more than three in four single women”.