NSW Government Urged to Implement Above-Inflation Rent Protections to Curb Homelessness

Sydney - Advocacy groups are calling on the New South Wales (NSW) government to adopt Victorian-style protections against excessive rent hikes, warning that above-inflation increases are becoming a primary driver of homelessness across the state.

Homelessness NSW issued the plea as the state grapples with a deepening cost-of-living crisis, fueled by a projected 20 percent surge in grocery prices and rising mortgage pressures on landlords.

The organisation argues that current protections are insufficient for tenants on the brink of housing instability.

Under recent reforms in Victoria, tenants have gained the right to challenge rent increases that exceed the Consumer Price Index (CPI).

In contrast, the NSW Civil and Administrative Tribunal (NCAT) currently focuses on prevailing market rates rather than inflation when assessing whether a rent hike is excessive.

Homelessness NSW Chief Executive Officer Dom Rowe stated that for many vulnerable renters, even a modest increase beyond their means acts as a "tipping point."

“Right now, an above-inflation rent increase can be the event that ends someone’s tenancy,” Rowe said.

“Victoria has recognised this risk and recently acted. NSW should do the same before more people are pushed into homelessness,” she said.

The urgency of the situation is highlighted by current welfare rates. A single person on JobSeeker receives approximately A$817 per fortnight, while those on Youth Allowance receive A$685, figures that are vastly lower than the median rent in Sydney.

Data also shows that a single person on JobSeeker would need to spend up to 131 percent of their income just to cover typical Sydney rental costs.

The advocacy group expressed concern that as investors face higher mortgage repayments, these costs are being passed directly to those with the least capacity to pay.

“We know many landlords are grappling with higher interest rates and that pressure will undoubtedly flow through to tenants,” Rowe said.

“But renters don’t have the same buffer. For someone on income support, even a modest rent increase can be the difference between staying housed and losing their home altogether," she also stated.

The call for reform comes just weeks before the 2026 street count.

Following an 8 percent surge in rough sleeping last year, experts anticipate the upcoming figures will reflect a further decline in housing security.

Currently, one in five low-income renting households in New South Wales is classified as being under significant financial strain.

Beyond the risk of rough sleeping, Homelessness NSW warned that financial stress is likely to correlate with an increase in family and domestic violence, further burdening social services that are already operating at capacity.

“There has been no meaningful increase in income support, and people simply cannot keep up with rising rents,” Rowe said, adding, “If governments can move quickly to support business, they should act just as decisively to keep people housed ahead of what will be a very tough period.”