New analysis from the Australian Council of Social Service (Acoss) has revealed a stark imbalance in government housing expenditure, with tax concessions for landlords costing significantly more than vital support programs for vulnerable Australians.
Tax Breaks Outpace Social Housing Investment
The comprehensive research shows that in 2025 alone, property investors received $12.3 billion in tax concessions through mechanisms including capital gains tax discounts and negative gearing arrangements. Meanwhile, total government expenditure on key housing assistance programs – encompassing social housing, homelessness services and rent assistance – amounted to just $9.6 billion during the same period.
This financial disparity emerges as new Productivity Commission data indicates the proportion of homes dedicated to social housing has plummeted to a record low of 3.6%, representing a dramatic decline from 5.7% during the 1990s. The collapse in accessible housing for low-income families coincides with a deepening affordability crisis that has seen rental costs skyrocket, social housing waitlists expand dramatically, and homelessness rates increase across the nation.
Growing Crisis Amidst Generous Concessions
Jacqueline Phillips, Acoss's acting chief executive, described the situation as increasingly dire, stating that "housing stress and homelessness are getting worse while absurdly generous tax breaks drive up home prices and supercharge inequality in our society." The research indicates that wealthier and older Australians receive the majority of these substantial tax concessions, while approximately 190,000 households remain on public housing waitlists – a significant increase from 169,000 in 2024 and 141,000 in 2018.
The analysis further reveals that fewer than 2% of homes currently being constructed are designated for social housing, representing a dramatic reduction from historical levels of 15% during the 1970s and 22% in the 1950s. This construction shortfall occurs despite Australia being one of the world's wealthiest nations, with its social housing proportion standing at approximately half the Organisation for Economic Co-operation and Development (OECD) average.
Deepening Housing Stress and Homelessness
Property research firm Cotality reports that median asking rents have surged by 43% over the past five years, reaching $681 per week and forcing households to allocate a record one-third of their income to rental payments. This escalating financial pressure has resulted in more entrenched housing stress among low-income Australians, with persistent homelessness – defined as being without secure accommodation for more than seven months within a two-year period – climbing from 22% in 2019 to 27% in 2025.
The Acoss analysis of Productivity Commission data also indicates that the proportion of households in "greatest need" on social housing waitlists – comprising people who are homeless or at imminent risk of homelessness – has jumped from 26% to 41% of the public housing waitlist over the past decade.
Calls for Policy Reform
Maiy Azize, national spokesperson for the Everybody's Home campaign, warned that Australia's housing crisis has become normalised, with people "getting used to existing in this constant state of rental stress." She emphasised that even those receiving maximum government support frequently remain in rental distress, calling for authorities to "flip the equation" by phasing out investor handouts and increasing community housing development.
With a Greens-led parliamentary committee currently examining property tax arrangements, Phillips has urged the government to reconsider capital gains tax concessions and negative gearing policies, redirecting billions of dollars toward achieving more ambitious social housing targets. This recommendation follows recent OECD calls for the Albanese government to substantially boost social housing investment to address the nation's deepening affordability challenges.
