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As the state’s rental crisis ravages on, the Western Australian government has announced increases to income and asset limits for its Bond Assistance Loan Scheme.
For eligible renters pushing to obtain private rental accommodation, the Department of Communities provides bond assistance and two rent in advance as an interest-free loan, with different maximum loan amounts depending on an individual’s circumstances.
The state government this week (19 June) moved to increase income and asset limits as well as maximum bond loan levels as part of its push to ensure more people can borrow a greater percentage of the total bond required.
As part of the scheme’s changes, the new weekly income limits have been raised by between 30 per cent and 50 per cent for all household types, with the new maximum bond loan amounts increasing by up to 70 per cent depending on household type and location.
Additionally, the program’s asset limits for all household types have been lifted by 100 per cent.
Western Australia Housing Minister John Carey explained the changes were born from a recent review into the Residential Bond Loans Assistance Program. He explained the program offers the state’s most vulnerable residents, on low and moderate incomes, to “secure private market rental housing by offsetting some of the upfront costs”.
Anglicare Australia’s annual Rental Affordability Snapshot, published in April, painted a grim picture for Australia’s most vulnerable tenants. The report found rental affordability for minimum wage earners to be at new lows, with under 1 per cent of rentals available to the nation’s lowest earners.
Given the state’s incredibly tight rental market and the subsequent rises in rents and bonds, Cath Hart, chief executive officer at the Real Estate Institute of Western Australia (REIWA), explained this rental climate has placed “extra financial pressure on tenants seeking a private rental”.
While the struggle exists for all prospective renters in Western Australia, she noted, “it can be even more challenging for tenants who are moving from one property to another and having to pay bond and two weeks rent in advance for their new home while potentially waiting for their previous bond to be released”.
She believes “the changes in the scheme bring the limits in line with current market conditions and will give more people access to the funds they need to secure a rental property”.
Australia’s post-pandemic rental market has been categorised by tightened conditions and soaring rents. Western Australia’s market has been severely affected during this time, ranking third among Australian capital cities for the largest decline in available rentals since the dawn of the pandemic (70 per cent).
Earlier this year, the South Australian government announced changes to their Private Rental Assistance Program (PRAP), resulting in an increase to the financial assistance limit.
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