Canberra: Australia continues to pour billions of dollars into tax breaks for property investors, outstripping spending on social housing, homelessness support, and rent assistance combined, according to research by the Australian Council of Social Service (ACOSS).
The analysis, published alongside fresh data from the Productivity Commission, reveals a troubling decline in public housing availability. The share of homes reserved for social housing has plummeted to a record low of 3.6 per cent, down from 5.7 per cent in the 1990s, highlighting a long-term erosion of affordable housing for low-income families.
ACOSS reports that in 2025, tax concessions for landlords reached $12.3 billion, while total expenditure on essential housing assistance programs amounted to $9.6 billion. The disparity underscores a systemic imbalance in housing policy, where wealthy property owners benefit disproportionately while vulnerable households struggle to access basic shelter.
The situation has fueled an affordability crisis. Rising rents, extended waitlists for social housing, and increasing homelessness have left many Australians struggling to secure stable accommodation. Current estimates indicate about 190,000 households are on public housing waitlists, up from 169,000 in 2024 and 141,000 in 2018.
Jacqueline Phillips, acting chief executive of ACOSS, said the findings demonstrate “housing stress and homelessness are worsening while absurdly generous tax breaks drive up home prices and deepen inequality in our society.” She urged the Albanese Government to reform capital gains tax concessions and negative gearing, redirecting the funds toward ambitious social housing targets.
Despite Australia’s status as one of the world’s wealthiest nations, the 3.6 per cent allocation of homes to social housing is roughly half the OECD average. Alarmingly, fewer than 2 per cent of homes currently under construction are earmarked for social housing, a steep decline from 15 per cent in the 1970s and 22 per cent in the 1950s.
The Productivity Commission data analyzed by ACOSS also highlights the growing urgency among the most vulnerable. Over the past decade, the proportion of households in “greatest need” on social housing waitlists including those homeless or at risk of homelessness has surged from 26 per cent to 41 per cent.
Persistent homelessness, defined as being without a home for more than seven months over a two-year period, has also worsened, climbing from 22 per cent in 2019 to 27 per cent in 2025. These statistics paint a stark picture of a housing system increasingly failing those most in need.
As the OECD urges the Australian Government to increase investment in social housing, ACOSS’s report underscores the need for urgent policy reform. Redirecting existing tax incentives for landlords toward building and maintaining affordable housing could provide a lifeline to tens of thousands of Australians currently facing housing insecurity.