Renters in financial crisis could get up to $2500 to cover rent, and $250 for other household expenses under new funding in the next ACT budget.
The ACT government has backflipped on a rental relief fund that was axed in the 2025-26 budget and will now provide an additional crisis support payment of $250 for renters in crisis to cover things like utilities, insurance, and basic furnishings.
On Tuesday, May 26, Treasurer Chris Steel said the smaller $250 payment would be distributed to people spending more than 60 per cent of their income on rent, as well as people on Housing ACT's waiting lists.
The entire funding program is expected to support about 3300 people.
"This new, more permanent program will be able to provide that ongoing support ... for rent for those who need it to make sure that they can maintain their tenancy, and so that they don't end up homeless and then require even more funding," he said.
"Certainly we have heard from organisations that there could be increasing demand, and we'll certainly be listening to partner organisations that work with us... about what they're experiencing and consider that in future budgets whether extra funding would be required."
As part of the Monday budget announcement, ACT homelessness services are set to receive a combined $15.4 million in funding.
Attorney-General Tara Cheyne and Housing Minister Yvette Berry announced they would reinstate the fund in the 2026-27 budget after a petition was tabled by Greens leader Shane Rattenbury in September last year.
The rent relief fund directly paid the landlords of renters in financial stress up to four weeks worth of rent, at a maximum of $2500, in one-off payments.
Care Financial, which administered the fund, said it stopped renters from being evicted or choosing between medical bills, food, school supplies and rent.
A $133,000 rent relief fund was first introduced in late 2021 as a COVID-19 support payment.
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It provided grants up to $1000 after the ACT government's moratorium on evictions ended on November 25.
Funding was quickly exhausted, and demand again exceeded supply when it was re-established from April 2023 to July 2023. Finally, it operated again from September 2023 to July 2025.
Ms Cheyne and Ms Berry said the ACT government had spent $3.7 million in grants and administration fees since April 2023.
When the fund was discontinued in the 2025-26 budget, Treasurer Chris Steel said it was always intended as a temporary relief measure following the COVID pandemic.
At the time, Care Financial's Aoife Berenger said the fund was a highly effective, targeted scheme. It helped funnel people into the charity's financial support programs.
"There's nothing that quite does the same [thing]. This is a very targeted support for low-income people and people with financial vulnerabilities," Ms Berenger said.
"It's about doing a budget, it's about trying to reduce debts. But sometimes that isn't the answer, sometimes it's just to relieve pressure for four weeks, and I just don't think there's something else that quite does that."
In a statement, deputy Greens leader Jo Clay said it was wrong for the government to ever call the payment a COVID relief measure.
"We welcome its return, but it should never have been cut. Vulnerable Canberrans have gone months without a key lifeline," Ms Clay said.
"This must be more than a temporary fix. We need sustained investment in keeping people housed."
The next budget will also help more low-income parents cover costs for public school expenses.
The education equity fund provides one-off payments of $400 for preschool students, $500 for primary school students and $750 for high school and college students.
This could help cover things like uniforms, books, excursions, sporting equipment, sporting activities or music lessons.
These payments were granted to more than 6200 students in 2025.
The Electricity, Gas and Water Rebate, up to $800 for low-income households, will continue to be funded in the upcoming budget.
