This research looked at how Commonwealth Rent Assistance (CRA) affects low-income families who rent privately. It focused on housing, money, health and wellbeing outcomes for parents and children. It also looks at the role of CRA in reducing disadvantage passing from parents to children. The forms of disadvantage considered in the report include poor housing, financial, wellbeing and health outcomes. 

There is little research on how CRA affects recipients and their children. This research helps to understand how effective CRA is at reducing disadvantage and improving wellbeing. It also shows how these effects pass to children of households that receive CRA.

Key findings

• CRA is the most expensive demand-side housing support program in Australia, costing the federal government $5.5 billion in 2023–2024.
• CRA recipients experience worse hardship and stress outcomes than those not in receipt of CRA.
• The level of CRA is currently set too low and disadvantages smaller families.
• An increase in the level of CRA payment would have a non-linear reduction in probability of children experiencing homelessness.
• Only families that use CRA to choose higher levels of housing consumption maximise future positive outcomes for their children.