A study from Swinburne University of Technology and RMIT University has looked at the cost of living across all Australian capital cities, finding that the average share-house rent in each city’s inner suburbs is at least 70 per cent of a Newstart recipient’s income.

In Sydney, where the median rent is $550 a week, the research split such a cost between two renters which still amounts to $275 each. 

This would leave a renter on Newstart with only $48.24 a week or $6.89 a day to live on.

For Australia’s second-largest city, Melbourne, the third most expensive rental market it does not get much better, with 70 per cent of income spent on rent. This leaves jobseekers $98 a week to pay for necessities including food, utilities and the cost of seeking a job including generally required mobile phones and travel cards.

What about leaving the inner cities?

If Newstart recipients want to leave the inner city, their payments will still not go far enough to reach acceptable financial stress levels, the report found.

In Victorian regional cities like Bendigo and Ballarat, the rent for sharers exceeds the commonly accepted 30 per cent benchmark that would indicate an individual is under housing affordability stress.

In these locations, recipients would still be paying $130 a week in rent – almost half their Newstart payments. 

Even with rent assistance, that would leave them with $192 – still $24 less than the healthy benchmark.

The study’s researchers found only two regions in all of Australia where single unemployed people would have any hope of meeting rents without being considered as under housing stress: northern Tasmania and outer Hobart.

But in these localities, other issues prevail: The youth unemployment rate is up at 16 per cent.

The findings come after nestegg reported that 7.3 million Australians would be forced to look to government benefits such as Newstart if they found themselves unemployed.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

more on this topic

Property

Zagga's ninth anniversary sees focus on investor education in real estate private credit

In a significant milestone, Zagga, a key player in the Australian real estate sector, is celebrating its ninth anniversary with a renewed commitment to investor education. The company has grown ...Read more

Property

Australian property’s quiet pivot: resilience hides a new competitive map

Australia’s housing market remains sturdier than the macro noise suggests, but the sources of resilience have shifted. For operators, the profit pool is migrating from ‘volume at any price’ to ...Read more

Property

Gen Z’s 5% deposit rush: how policy‑driven demand is reshaping Australia’s housing value chain

A government-backed 5% deposit guarantee has triggered a surge in first-home buyer intent among Gen Z, pulling forward demand and resetting competition across banks, brokers and buildersRead more

Property

Cautious bidders, smarter sellers: a Queensland auction case study on repricing risk

Queensland’s auction market has hit a caution cycle as buyers price in higher borrowing costs, global uncertainty and cost-of-living pressure. Clearance softness is forcing agencies to re-engineer ...Read more

Property

Trust, technology and triage: what NSW’s ‘name and shame’ signals for real estate governance

NSW’s latest enforcement action on real estate trust accounts isn’t a one-off embarrassment; it’s a stress test of sector governance. With licences suspended and penalties applied, the message is ...Read more

Property

Vacancy is rising, demand is resilient: A case study in defending yield as Australia’s rental cycle rebalances

After a blistering run, Australia’s rental market is loosening at the edges. Vacancy is edging up off historic lows, rent inflation is set to moderate into 2026, yet underlying demand remains ...Read more

Property

Don’t lose the deposit: A case study in stopping real estate payment fraud — and the ROI for doing it

Deposit redirection scams are quietly eroding buyer savings and agency reputations in Australia’s property market. This case study unpacks how a mid-tier real estate group redesigned its settlement ...Read more

Property

The $12m threshold: Why portfolio value, not property count, now defines Australia’s investor elite

The old yardstick of six properties as shorthand for investment success has been overtaken by a harsher reality: in today’s market, elite status is defined by balance-sheet strength, not asset countRead more