Victorian renters in affordable housing will pay lower rents and receive longer leases under changes announced by the Victorian Government, as debate over the state’s rental system continues amid concerns about affordability, housing supply and rising disputes.
Housing and Building Minister Nick Staikos announced new settings for Victoria’s Affordable Housing Rental Scheme, which has delivered more than 500 affordable homes since its launch in 2022.
Under the revised arrangements, rent will be set at the lower of either 30 per cent of a household’s income or 74.99 per cent of market rent.
For example, a family earning $80,000 a year would pay a maximum of about $461 a week under the income-based cap. If 74.99 per cent of the market rent for a comparable property was lower than that figure, the lower amount would apply.
The change replaces the previous model, where rents were capped at 90 per cent of market rent or 30 per cent of the median household income.
The government is also extending standard lease agreements under the scheme from three years to five years, giving tenants greater certainty when planning work, schooling and family commitments.
“Every Victorian family deserves a safe, secure place to call home,” Mr Staikos said.
“We’re cutting rents and locking in longer leases – because families need stability, not uncertainty.”
The Affordable Housing Rental Scheme currently supports residents in developments across suburbs including Kensington, Ascot Vale and Ashburton. The government says the homes are located close to employment centres, public transport and community services.
Eligibility remains linked to household income. Individuals earning up to $74,080 a year, couples earning up to $111,110 and families earning up to $155,550 can apply, subject to availability and other criteria.
Income thresholds and market rent benchmarks will be reviewed annually.
The announcement forms part of the Victorian Government’s broader housing program, including its $6.3 billion Big Housing Build and Regional Housing Fund, which it says is delivering more than 13,000 social and affordable homes across the state.
The changes come as Victoria’s rental market remains under pressure, with affordability and supply continuing to dominate public debate.
Earlier this month, the Victorian Nationals cited figures showing more than 38,500 rental disputes were lodged through the Victorian Civil and Administrative Tribunal and Rental Dispute Resolution Victoria over the past year.
Shadow Minister for Consumer Affairs Tim McCurdy argued the figures pointed to growing challenges within the state’s rental system.
“Labor promised a rental system that was fairer and easier to navigate. Instead, Victorians are facing growing complexity, more disputes and a housing market under increasing pressure”
“These figures should be a wake-up call for the Allan Labor Government,” Mr McCurdy said.
“Labor promised a rental system that was fairer and easier to navigate. Instead, Victorians are facing growing complexity, more disputes and a housing market under increasing pressure.”
Mr McCurdy said “More than 38,500 disputes in a single year is not a sign of a healthy rental system. It is a sign of a system that is becoming increasingly adversarial and difficult for Victorians to navigate.”
He also argued that ongoing regulatory changes had increased uncertainty and compliance costs for rental providers, affecting housing supply.
“Every time a rental provider leaves the market, that’s one less home available for a Victorian looking for somewhere to live,” he said.
The Victorian Government maintains that measures such as lower rents, longer leases and investment in affordable housing are helping households manage rising living costs while improving housing security for renters.
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