The National Rental Affordability Scheme (NRAS), which subsidised landlords to lease homes at 20 per cent below market rent, officially ended last month after a decade-long wind-down. The closure has created acute housing stress for vulnerable tenants, with over 4,500 properties leaving the scheme in 2026 alone.
Pensioner Paula Swann, 79, exemplifies the scheme’s impact. Previously paying $319 weekly for a subsidised Port Macquarie unit, she faced an increase to $420 weekly when NRAS ended. Unable to afford the jump, she spent three months couch surfing before returning to her former unit block, where she now works part-time as a cleaner to meet income requirements.
“It’s very hard. I never expected that at 79 I’d be homeless,” Ms Swann said.
Similarly, 80-year-old Victor Anderson’s Perth apartment rent jumped 41 per cent to $475 weekly after his subsidised status ended in June. Located near his hospital for stage 4 bowel cancer treatment, the rent increase forced difficult choices about relocating.
“I worry every day,” Mr Anderson said. “The government hasn’t done anything. Nobody seems to be interested; there are thousands of people like me and nobody to talk to.”
The scheme previously supported over 60,000 vulnerable tenants at its 2016 peak across approximately 36,000 homes. A 2019 Grattan Institute review found NRAS “poorly targeted,” expensive and inefficient, though advocates argue a replacement is urgently needed.
National Shelter CEO Jackson Hills has called for a “similar and better” affordable housing scheme to address the gap. He proposed utilising tax incentives rather than direct investment, with programs tailored by location. According to Mr Hills, current government efforts fall far short: an estimated 640,000 households require social housing, with thousands more in rental stress following NRAS’s end.
“In some cases they’ve definitely exited into homelessness,” Mr Hills said. “It might mean they’re rough sleeping … but it also means they rely heavily on the crisis system that’s already under immense pressure.”
Emma McGuire from the Mid Coast Tenants Advice and Advocacy Service reported a spike in calls from former NRAS participants navigating the private rental market, with “often no suitable replacement or alternative options easily found.” She noted tenants can dispute excessive rent increases at tribunal.
The federal government’s spokesperson stated the Commonwealth had created “the most ambitious housing program since the post-war period,” investing billions to deliver housing for vulnerable cohorts including older women at risk of homelessness. However, Federal Housing Minister Clare O’Neill did not directly respond to questions about whether she supports a replacement affordable housing policy.
Key facts
- The National Rental Affordability Scheme officially ended last month after subsidising below-market rentals for a decade
- Over 4,500 properties exited the scheme in 2026, affecting vulnerable renters including elderly pensioners
- Former participants faced rent increases ranging from 25 to 41 per cent, with some taking on part-time work to afford housing
- The scheme previously supported over 60,000 vulnerable tenants across approximately 36,000 homes at its 2016 peak
- National Shelter is calling for a new “similar and better” affordable housing scheme to address the housing crisis
- An estimated 640,000 households currently require social housing