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What I am about to say is probably self-evident, but it is worth repeating, if only because the self-evident nature of the assertion has not been sufficient for policy action to address the problem. Here it is: along with increasing the rate of welfare entitlements, Australia could achieve demonstrable improvements in reducing poverty by massively increasing the supply of housing that is affordable for people on low incomes.
Very few people are lucky enough to access the miniscule supply of social housing in Australia, which currently accounts for less than five per cent of the entire housing sector. As such, not only are people in poverty excluded from affordable housing, but the unaffordability of housing available through the market directly contributes to their poverty.
Moreover, with a constrained capacity to access housing that is available and regulated through the market, people living in poverty are left with no option but to access private rental housing available through informal lettings.