Australia’s peak housing advocates warn the federal government’s budget measures won’t be enough to tackle the affordability crisis, calling for rental reform at the next meeting of national cabinet.

The government will increase the the rate of Commonwealth Rent Assistance by 15 per cent, meaning up to $31 extra a fortnight for people leasing their home.

This is far below the 50 per cent increase housing bodies were hoping for.

Prime Minister Anthony Albanese defended the increase, and said it was just one measure in a suite of policies aimed at addressing housing supply and affordability.

“It will make a difference to people who are under pressure due to rising rents,” he told ABC News.

Mr Albanese urged crossbench senators to back Labor’s key election pledge, its $10 billion housing fund which would build 30,000 affordable homes.

Negotiations with the Greens are under way with the bill before parliament.

“These all put together show a government that is committed to dealing with the pressures that are there on housing,” the prime minister said.

National Shelter chief executive Emma Greenhalgh said the nation’s housing ministers needed to bring back “meaningful” rental reform to a national cabinet meeting in October.

“We would like to see tenants put at the centre of that,” she told reporters in Canberra, pointing to the need to rein in rent rises and tackle unfair evictions.

Homelessness Australia chief executive Kate Colvin said it was “really urgent” for the government’s housing legislation to pass, but at the same time, a greater commitment was needed to deliver more homes.

On the rent assistance increase, Ms Colvin said every extra dollar would make a difference, but renters would still be left struggling.

Tess Ikonomou
(Australian Associated Press)