Login
iscover
An additional 433 households, which would have previously been ineligible, have been helped into private rentals following changes to South Australia’s Private Rental Assistance Program (PRAP) earlier this year.
In February, the Malinauskas government announced the expansion of the eligibility criteria for the program, which covers the cost of bonds and up to four weeks’ rent over two years.
Managed by the South Australian Housing Authority, the PRAP helps low-income renters by avoiding upfront costs, including bond and rent in advance through the provision of bond guarantees and rent payments to those eligible.
As part of the state government’s Better Housing Future plan and following an extensive review of the state’s Tenancy Act, changes to eligibility meant financial assistance was increased from a limit of $450 to $600 per week, ensuring more families could access the relief.
Notably, the amount of support provided varies according to a tenant’s income and circumstances, with eligible tenants receiving a maximum of up to $4,800.
During its announcement, the state government estimated an additional 400 households would be eligible for the program as a result of these changes.
The expanded guidelines allowed the household cash asset test limit to increase significantly from $5,000 to $62,150 per household. Previously, any household with savings of $5,000 was not eligible for rental assistance, and renters had to use all their savings to cover bond, rent in advance and moving costs.
Notably, 93 customers who would have been ineligible under former asset limits have also received assistance.
Other changes making renting more affordable and accessible to more South Australian renters include: increasing the rent threshold for a six-week bond from $250 a week to $800; banning rent bidding; and improving how renter information is collated and stored.
A total of 3,230 customers have received PRAP support this year to 30 April 2023, up from 2,938 in the same period in 2022.
In addition, 193 fewer customer assessment interviews needed to be conducted and the total bond assistance provided this year to April 30, is $3.9 million. This compares to the same period last year, when $3.4 million was provided.
Minister for Human Services Nat Cook said that with rental vacancy rates at historic lows, the government acknowledged they had to “do more” to help renters access the homes that are available.
Domain’s latest data showed Adelaide’s vacancy rate stood at 0.4 per cent in April, making it one of the most competitive cities for potential tenants.
“The rental market is tough for South Australians with rental prices continuing to rise and Adelaide having one of the lowest rental vacancy rates in the nation,” she added.
Ms Cook also lauded the “immediate impact” the private rental assistance reforms have made, adding the expanded criteria “are clearly providing needed relief to households by making it easier for more South Australians to access affordable rental accommodation”.
Mary Patetsos AM, South Australia’s Housing Trust Board presiding member, said the changes enacted in February are easing the pressure on low-income renters.
“The planned rental reforms and increased financial support for tenants were positively received by several real estate and housing stakeholders,” she said.
Ms Patetsos also highlighted the savings tenants made due to the reforms.
“Following the changes to the threshold, the government estimated that renters will save between $500 and $1,600 in upfront costs when they rent a property, with a renter of an average-priced house in Adelaide shaving $930 off their bond costs.
While the changes have helped more South Australians get into accommodations, she professed that more needs to be done to address the rental crisis.
“We need a variety of measures to assist more people to secure a rental and stop those on the margins, including vulnerable families, [from] falling into homelessness,” she concluded.
Newsletter
