Australia’s homelessness services are under unprecedented strain, with more people seeking help, more being turned away and a sharp rise in rough sleeping prompting calls by Homelessness Australia for a major intervention in the upcoming budget.
In its submission the peak body has warned the nation’s safety net is fraying as housing costs, inadequate income support and a chronic shortage of affordable homes collide.
Homelessness Australia CEO Kate Colvin has urged the federal government to make homelessness prevention a core budget priority and said services are increasingly dealing with people who are already homeless by the time they ask for help.
“Bad luck should not lead people to homelessness, but inadequate income support payments and overstretched services mean that’s increasingly the reality in Australia.
“Overall demand continues to climb, with the number of people assisted by homelessness services rising from around 273,000 in 2021-22 to almost 289,000 in 2024-25.
“Over the same period, the number of people sleeping rough when they first presented for help surged from about 23,500 to 34,800. Without serious investment in prevention, the situation is going to keep declining with devastating effect.”
People fleeing family and domestic violence remain one of the largest and fastest-growing groups seeking support, with around 117,000 people receiving homelessness assistance in 2024-25, up from approximately 108,000 three years earlier.
More Australians are also being turned away altogether. Unassisted requests for homelessness services increased from about 105,000 in 2021-22 to roughly 129,000 in 2024-25, with services most commonly reporting there was simply no accommodation available.
Homelessness Australia is calling on the federal government to establish a dedicated Homelessness Prevention Fund, lift income support payments, and commit to a long-term expansion of social and affordable housing alongside targeted investment in youth housing and support.
“A Homelessness Prevention Fund must be established to allow services to step in early to cover rent arrears, power bills or other short-term shocks before people lose their home and end up in crisis,” Ms Colvin said.
“Despite two recent increases to income support, severe rental stress has surged by 19 per cent which is a clear sign payments are still nowhere near keeping pace with rents.
“Income support payments like JobSeeker are in desperate need of an increase from around $397 a week to at least $580 a week to give people a fighting chance to pay rent and keep a roof over their heads.
Ms Colvin said long-term investment in social housing is also needed to relieve pressure on frontline services as well as measures to assist young people who are locked into homelessness.
“A commitment to grow social and affordable housing to at least 6 per cent of housing stock within a decade,and 10 per cent over the longer term is needed because without supply, people simply have nowhere to go.
“Dedicated youth housing pathways, backed by mental health, education and employment supports, should also be set up if we’re serious about breaking cycles of homelessness rather than managing them indefinitely.”
Key Statistics
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Demand for homelessness support continues to rise, with the number of people assisted increasing from around 273,000 in 2021-22 to almost 289,000 in 2024-25.
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The number of people fleeing family and domestic violence and seeking homelessness support has grown from around 108,000 to about 117,000 over the same period.
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The number of people sleeping rough when they first seek help has surged from around 23,500 in 2021-22 to 34,800 in 2024-25.
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Unassisted requests for help have climbed sharply, from around 105,000 to 129,000, most commonly because there is no accommodation available.
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The number of Australians in severe rental stress-paying more than 50 per cent of their income in rent has jumped 19 per cent since June 2023, despite income support increases in 2023 and 2024, which have been overtaken by rising rents.
Contact details:
Eliot | 0423 921 200
