Australia’s Rent Assistance to Increase in August 2025 – Updated Rates, Eligibility & Claim Process Explained
Starting August 2025, the Australian Government will roll out a significant increase to Commonwealth Rent Assistance (CRA) to help eligible individuals and families cope with rising rental costs.
This comes as part of the 2025 Federal Budget’s commitment to easing housing pressures for low-income earners, pensioners, and welfare recipients.
In this article, you’ll find all the essential details about the upcoming rent assistance boost, including new payment rates, eligibility requirements, how to apply, and frequently asked questions.
What Is Commonwealth Rent Assistance (CRA)?
Commonwealth Rent Assistance is a non-taxable income supplement paid by Services Australia through Centrelink to eligible individuals who rent in the private market.
It’s designed to reduce the cost of housing for people already receiving certain social security payments or family tax benefits.
CRA is paid fortnightly and calculated based on the amount of rent paid and your household composition.
What’s Changing in August 2025?
From August 1, 2025, the government will increase the maximum rent assistance rates by 10%. This rise is intended to better reflect current rental market conditions across Australia, particularly in capital cities and regional hotspots where rent has soared.
Key Changes Include
- 10% increase in maximum rates across all recipient categories
- Higher rent thresholds for eligibility
- Adjustment of the CRA payment caps for singles, couples, and families
Who Is Eligible for Rent Assistance?
To qualify for CRA, you must:
- Be paying rent or accommodation costs (not a homeowner)
- Be receiving an eligible Centrelink or DVA payment, such as:
- Age Pension
- Disability Support Pension
- JobSeeker Payment
- Youth Allowance
- Parenting Payment
- Family Tax Benefit Part A
- Meet the minimum rent thresholds set by Centrelink
You do not need to apply separately for CRA. If you’re eligible, Centrelink automatically includes it in your fortnightly payments after rent details are updated.
New Rent Assistance Payment Rates from August 2025
Below is a comparison of current and updated rates, effective 1 August 2025:
Rent Assistance Payment Rates (Fortnightly)
| Recipient Type | Current Max Rate | New Max Rate (Aug 2025) |
|---|---|---|
| Single, no children | $184.80 | $203.30 |
| Single, sharer | $123.20 | $135.50 |
| Couple, no children | $174.00 (combined) | $191.40 (combined) |
| Single/couple with 1 child | $216.20 | $237.80 |
| With 2+ children | $245.00 | $269.50 |
These are maximum payments. The actual amount you receive depends on your rent amount and income support payment.
Payment Schedule and Disbursement
Rent Assistance is paid every fortnight with your regular Centrelink payment (e.g., Age Pension, JobSeeker, Family Tax Benefit). After the August increase, the first updated payment will be issued on your next scheduled date following August 1, 2025.
Sample Disbursement Dates
| Fortnight Start | Payment Date |
|---|---|
| 1 Aug – 14 Aug | 15 Aug 2025 |
| 15 Aug – 28 Aug | 29 Aug 2025 |
How to Claim Rent Assistance
You do not need to apply separately for CRA, but you must:
- Report your rent or accommodation costs to Centrelink
- Submit a Rent Certificate or lease agreement
- Update your living arrangements if you move
- Link your MyGov account to Centrelink for easy management
You can also upload documents and verify your rent amount using the Centrelink Express Plus mobile app.
What Counts as Rent?
Eligible housing costs that qualify for CRA include:
- Private rentals (including units, houses, boarding rooms)
- Caravan park site fees (for permanent residency)
- Lodging or room-only arrangements
- Rent paid to a community housing provider
- Retirement village fees (if not covered under homeownership)
Rent paid to family members may not be accepted unless it’s a formal, arms-length agreement.
What’s Not Covered Under Rent Assistance?
CRA does not cover:
- Homeowners or mortgage repayments
- Rent paid under subsidised public housing
- Boarding schools or student accommodation covered by other allowances
- Overseas rental agreements
Ineligible individuals may still qualify for state-based housing or energy rebates.
The August 2025 Rent Assistance increase will offer vital relief to Australians facing high rental costs. With a 10% rise in maximum payments, eligible Centrelink recipients can better manage their housing expenses.
Check your rent details, update your Centrelink records, and ensure your payments are accurate ahead of the August adjustment.
Frequently Asked Questions
Q1: Do I need to reapply to receive the increased Rent Assistance in August 2025?
No. If you’re already receiving CRA, the increase will be applied automatically from August 1, 2025.
Q2: Will my CRA payment go up if my rent increases after August 2025?
Yes, as long as you report the new rent amount and it exceeds the updated minimum rent thresholds, your payment may increase.
Q3: Can I receive Rent Assistance if I live with roommates or in shared housing?
Yes. CRA is available to eligible sharers, though the maximum rate is lower than for single renters.
