Mission Australia’s response to Federal Budget 2026 -2027

Key points

• Mission Australia says the Federal Budget does not do enough to combat the cost of living pressures that are pushing people into homelessness.
• We welcome the $60 million to address the rental gap that prevents young people from accessing social housing, but far greater investment in social and affordable housing is needed, with more than a quarter of a million households on the waitlist.
• Homelessness services are facing crushing demand. Investing in a $500 million Homelessness Prevention Transformation Fund would see people helped before they reach a crisis point.

National community services and housing provider, Mission Australia says the latest Budget will not provide relief to the millions of people across the country facing immense financial pressures.

People across the country are reaching breaking point

Mission Australia CEO Sharon Callister said, “People are hurting and looking for fixes to a system that is not working for them. They want housing they can afford and to be able to provide for their families without stressing over how every dollar is spent.

“The increasing cost of fuel, food and other essentials are an additional burden for the many people who were already struggling to pay their rent or mortgage. With families and individuals pushed to their limits, the number of people experiencing homelessness continues to grow."

Homelessness services facing increased demand

“Mission Australia staff are seeing more people reaching out for support than ever before, and our homelessness services are hitting capacity. They’re helping working people who can’t find a home to rent, women and children needing support after escaping domestic and family violence, young people seeking safety and older people struggling to survive on the aged Pension. These are the people our governments should be prioritising.

“Young people aged between 19 and 24 are the cohort most at risk of experiencing homelessness,” Ms Callister added.

“We applaud the Federal Government for acknowledging this and allocating $60 million in funding for the youth housing supplement, which will help more young people at risk of or experiencing homelessness to access social housing. It’s a welcome step towards creating a fairer housing system in which young people have the safety and security they need to thrive.

“But the Government could have made more significant investments in social and affordable housing, homelessness prevention and poverty alleviation measures, including raising income support payments to at least $600 a week, boosting Commonwealth Rent Assistance by 60% and funding more dedicated supported housing, like Youth Foyers.

“Instead, we have efforts that aren’t enough to truly reduce inequality and create a fairer Australia.”

More investment needed in social and affordable housing

"After the completion of the latest funding round, the Housing Australia Future Fund (HAFF) will be exhausted and will no longer contribute to the new supply of social and affordable homes, even as more than 250,000 households remain on the social housing waitlist. Ongoing and greater investment is essential,” Ms Callister said.

“People are spending years waiting for social housing and they can stay trapped in homelessness when there is no truly affordable housing for them to move into.

“We call on the Federal Government to continue investing in the HAFF so that we can reach a target of at least one in every ten new homes being social or affordable housing by 2045."

Change the system and invest in prevention

“If this budget is really going to address housing inequality, any revenue from changes to the treatment of the capital gains tax and negative gearing must be directed towards measures that improve outcomes for people on the lowest incomes.

“We urge the Government to use the revenue to fund much needed investment in social and affordable housing and homelessness services, rather than general tax relief. We call for a new $500 million Homelessness Prevention Fund that would see people helped earlier, before rental stress or other pressures turn into homelessness.

“We know that prevention works. When people seek help from Mission Australia's tenancy support services, we’re able to assist almost all of them (98%) to stay living in their homes and avoid homelessness. With a safe, secure home and the right support, delivered at the right time, homelessness can be prevented.”