Understanding the scale of Australia’s homelessness challenge

Homeless crisis services are the last line of defence between vulnerable Australians and sleeping rough. The importance of their work cannot be understated, yet ongoing pressures are straining the system to the point where hundreds of people in need are turned away every day. 

Increasing funding is essential to meet demand, but first we must understand the real level of demand. Understanding the full breadth of this generational crisis will better assist policy and investment decisions to limit the social and economic impact of homelessness. 

Uncovering our hidden homeless

On any given night, more than 120,000 Australians are forced into temporary accommodation, crisis care or sleeping rough. Considering the last national survey of this kind was the 2021 census, it’s fair to expect the actual number to be higher, as the lack of affordable housing and cost-of-living pressures have grown since then.  

One-in-five Workskil Australia job seekers experience homelessness. This is up from one-in-10 just two years ago. If we unpack the term ‘homeless’, it is generally defined as anyone lacking permanency or control over housing, not just those sleeping rough.

Based on the data collected and support provided, we suggest it is closer to one-in-two job seekers at risk of becoming homeless or who are already homeless and have not disclosed the extent of their situation.

During the last two years, Workskil Australia spent more than $3 million on more than 12,000 job seekers who asked for help with their housing challenges. This is 13 per cent more per customer than the average spent on the 64,000 customers who haven’t disclosed housing challenges. The spending spanned various areas, including clothing, food and fuel vouchers, rent and crisis accommodation, swags, sleeping bags and tents. 

There are several key takeaways from this data:

• Housing and crisis support are so overwhelmed that employment and other community services are forced to pick up the slack;
• Job seekers who are homeless cannot participate in education or employment, driving productivity challenges for the economy; and
• National homelessness is rampant and affecting more Australians than is reported.

Why are many unable or unwilling to disclose that they experience housing challenges?

Shame can be a factor, particularly for those escaping family or domestic violence or experiencing job loss. Relationship breakdown can lead to homelessness for older Australians, and this can be challenging to disclose. Further reasons for shame or embarrassment can include mental ill health, drug and alcohol misuse, disability or a combination of factors. 

Parents may withhold homelessness if they believe their children will be removed from their custody. Many are also despondent following past negative experiences, having to retell their traumatic stories every time they seek help. 

We also encounter many job seekers who do not consider themselves homeless, having some access to temporary or insecure housing.  

Regardless of their reasoning, withholding details will delay or limit access to the appropriate support. 

Without a fixed address, keeping up with Centrelink compliance can be difficult and affects welfare payments. The potential loss of this income only exacerbates the problems. Failure to disclose homelessness can also restrict someone from joining public housing wait lists.

Once homeless, physical and mental health can decline, and ongoing street presence reduces life expectancy by 20 years.  

The big-picture consequence is that if people do not disclose their situation to Services Australia or other community services, the true level of homelessness may not be captured in the data used to make housing policy or allocate funding.  

For reference, Census data reveals that only six per cent of Australia’s homeless population are sleeping rough. The majority have limited, temporary or inadequate housing (such as couch surfing). This supports our position that many of Australia’s homeless may not even consider themselves homeless. 

The sheer lack of viable and affordable options increases the personal challenges forcing many into homelessness. 

If we identify those at risk, appropriately fund early interventions and invest in medium- to long-term housing options, we can potentially limit the number of vulnerable falling into homelessness and set them on a path towards self-sustainability.   

Demonstrating a way forward

A 2017 Victorian study calculated that over 20 years, it would be significantly cheaper for the State Government to construct and provide emergency accommodation for homeless people and improve the human capital than continuing to wear the health, welfare, justice and personal costs. The report places the savings of this endeavour at $25,615 per year, per bed provided. Inflation will skew these figures, but it’s a study that deserves further evaluation. 

In 2024, Workskil Australia invested $8 million into a pilot program called Home2Work, purchasing 20 homes across hard-hit regions and renting them at affordable rates to job seekers who would likely be unsuccessful with private rental applications, particularly in current market conditions.  

This medium-term housing provides a small number of job seekers with a safe space to focus on personal development or achieving employment. It’s also the means to develop or salvage a rental history essential for obtaining future housing.  

We hope this pilot spurs increased investment and collaboration in medium- and long-term solutions for addressing the housing crisis.

There is no one-size-fits-all solution to these challenges, and we require a multifaceted approach that brings together the public and private sectors.

We can start by adequately funding housing and early intervention services to help those in need transition into safe and stable housing. Once basic needs are met, we can work to build their capacities for employment and their means to become economically independent.