Homelessness services turn away desperate Australians as crisis deepens, report finds

The research, titled Breaking the Firestorm and conducted by the University of NSW, reveals 91 per cent of frontline services have experienced increased demand over the past two years, while only 0.4 per cent reported a decline. Despite unprecedented pressure, official figures show just 3.9 per cent of clients who needed long-term housing received it in 2024-25.

The findings, prepared as a briefing from Homelessness Australia ahead of the government's Mid-Year Economic and Fiscal Outlook (MYEFO), expose a system so overwhelmed by soaring rents, chronic housing shortages and inadequate funding that it is increasingly unable to offer even emergency accommodation.

One representative of the homelessness sector told researchers: "We have nothing to do but give people tents and suggest somewhere sort of safe to camp. Women leaving family violence are being asked, 'do you have a lock on your car?' And if you have a lock on your car, you're considered to be safe."

More than nine in 10 providers blame deteriorating rental affordability for the surge in demand, while 86 per cent say finding permanent accommodation has become harder in the past two years. The briefing reveals 82 per cent of providers are finding it harder to secure temporary accommodation, and 95 per cent agree social housing shortages are limiting their ability to help people escape homelessness.

Homelessness Australia is demanding 34,000 new social homes annually, income support payments increased to at least $600 a week, substantially more federal funding for frontline services, and 20,000 permanent supportive housing places for people with serious mental illness and other complex needs. The Australian Council of Social Service has made a similar call to lift payments such as JobSeeker, Youth Allowance and Parenting Payment to parity with the pension and pension supplement.

Treasurer Jim Chalmers has conceded he is confronting a deteriorating fiscal outlook, with federal debt forecast to climb beyond $1.2 trillion by 2030 and cumulative budget deficits of $150.5 billion projected over five years. Rising global borrowing costs threaten to add billions more to the government's interest bill.

Homelessness Australia chief executive Kate Colvin said governments could no longer pretend the crisis could be addressed through minor changes. "There are now so many points of vulnerability in our housing and homelessness system that the cracks are starting to join. Small patch-ups just won't do the job," she said. "MYEFO is an excellent opportunity to begin a robust response and pull the fraying threads of our housing and homelessness system back together."

University of NSW researcher Andrew Clarke said the figures were the worst he had encountered. "The system is under extreme pressure," he said. "Homelessness support services are swimming upstream against an ever faster current."

A spokeswoman for Housing Minister Clare O'Neil said the government had invested $1.2 billion to support 50,000 vulnerable Australians, including more than 1000 new crisis and transitional accommodation places for women, children and young people fleeing domestic violence. "Women tell us one of the main reasons they can't leave a violent relationship is that they have nowhere safe and stable to go. That should never happen in a country like Australia," she said. "We know there's more work to do."

The government stopped short of committing additional funding to address the worsening crisis, saying future decisions would be made through the usual mid-year budget and budget processes.