Learning from past mistakes: lessons from the National Rental Affordability Scheme
All Australians are spending more of their incomes on housing than in the past, but low-income households are feeling the pinch most. Many low-income renters are in poverty, and many more are suffering financial stress. Inequality is increasing because rising housing costs have disproportionately whittled away the income growth of poorer households. A growing number of Australians are becoming homeless. This article summarises new Grattan Institute research showing that restoring the National Rental Affordability Scheme – NRAS – is not the answer. NRAS was expensive, inefficient, and poorly targeted. Other policies, such as investing in social housing and increasing Commonwealth Rent Assistance, are better ways to help low-income earners cope with high housing costs.