Australia is spending billions more on tax breaks for property investors than on essential housing assistance programs, according to new analysis that highlights the growing imbalance in the nation's housing policy.
Stark Financial Imbalance Revealed
Research conducted by the Australian Council of Social Service (Acoss) has uncovered a significant disparity in government expenditure. The analysis shows that tax concessions for landlords cost the public purse a substantial $12.3 billion in 2025. Meanwhile, total spending on crucial housing assistance programs – including social housing, homelessness services and rent assistance – amounted to just $9.6 billion during the same period.
Social Housing at Record Low
This financial imbalance coincides with alarming new data from the Productivity Commission revealing that the share of homes dedicated to social housing has plummeted to a record low of 3.6%. This represents a dramatic decline from 5.7% in the 1990s and stands at approximately half the average across OECD nations.
The collapse in accessible housing for low-income families has occurred alongside a severe affordability crisis that has seen rents skyrocket, waitlists for social housing expand dramatically, and homelessness rates increase across the country.
Growing Housing Stress and Waitlists
As wealthier and older Australians benefit disproportionately from generous tax concessions for property investors, the number of households on public housing waitlists has surged to approximately 190,000. This represents a significant increase from 169,000 in 2024 and 141,000 in 2018.
Jacqueline Phillips, Acoss's acting chief executive, stated that the report demonstrates how housing stress and homelessness are worsening while substantial tax breaks continue to drive up home prices and exacerbate inequality within Australian society.
Proportion of Critical Need Cases Increases
The Acoss analysis of Productivity Commission data further revealed that the proportion of households classified as being in "greatest need" on social housing waitlists has jumped substantially. These individuals – who are either homeless or at immediate risk of homelessness – now constitute 41% of the public housing waitlist, up from just 26% over the past decade.
Rental Market Pressures Intensify
According to property research firm Cotality, the median asking rent has increased by 43% over the past five years, reaching $681 per week. Consequently, households are now dedicating a record one-third of their income to rental payments, creating unprecedented financial pressure for many Australians.
Persistent homelessness – defined as those experiencing homelessness for more than seven months within a two-year period – has climbed from 22% in 2019 to 27% in 2025, according to the Productivity Commission data.
Calls for Policy Reform
With a Greens-led parliamentary committee currently examining property tax breaks, Phillips has urged the government to reconsider capital gains tax concessions and negative gearing arrangements. She advocates redirecting billions of dollars toward achieving more ambitious social housing targets to address the growing crisis.
Maiy Azize, national spokesperson for Everybody's Home, noted that Australia's housing crisis has persisted for so long that it has become normalised within society. She called on the government to fundamentally reconsider its approach by gradually phasing out subsidies for property investors while increasing investment in community housing initiatives.
The research emerges just one week after the OECD called on the Albanese government to substantially boost its investment in social housing infrastructure, highlighting the international context of Australia's domestic housing challenges.
