Home Advisory services Projects Social housing income eligibility limits in Western Australia Social housing income eligibility limits in Western Australia Client: Shelter WA Summary Income eligibility limits and the ways they are implemented determine who can access and remain in social housing. Shelter WA engaged AHURI to assess the impact of Western Australia’s current income eligibility limit settings on workforce participation, housing security and wellbeing. The research proved current income eligibility limits created a powerful workforce disincentive and provided recommendations to strengthen the case for reform in Western Australia. What we did This research brought together: national and international evidence a cross-jurisdictional policy analysis original income modelling survey data from 181 social housing tenants and waitlist applicants. The research established Western Australia’s income eligibility limits are the lowest in the country and have been functionally static for over a decade. Rather than being an effective rationing tool, it revealed income eligibility limits functioned as a near-universal work disincentive: 86% of survey respondents had managed work hours because of income limits Only 23% of social housing tenants felt they would be financially better off taking a job or working more hours 48% of waitlist applicants cited fear of losing their place as a barrier to work. Income eligibility limits were ultimately found to contribute to trapping households in welfare dependence, poverty and unemployment. Outcomes for the client The research set out a practical reform program spanning immediate administrative action, medium-term policy change, and longer-term structural investment, to reduce work disincentives, build viable pathways out of social housing for those seeking this, and restore trust. Recommendations included: three options for raising and indexing income eligibility limits to reduce work disincentives introducing a protected waitlist period, during which applicants who take up employment retain their place on the waitlist for a defined period introducing a rent freeze of at least 6-12 months when a tenant takes up new employment to combat the “income cliff” that can leave social housing tenants worse off financially strengthen viable pathways out of social housing funding employment and training services, scholarships and fee waiver programs to reduce barriers to employment for social housing tenants. Impact The eligibility trap: income eligibility limits, work disincentives and social housing in Western Australia was launched at an online event on 30 June 2026. The report serves as a strong advocacy tool for Shelter WA, generating statewide media exposure and providing important evidence for policy reform. READ THE REPORT Read the research The Eligibility Trap: Income eligibility limits, work disincentives and social housing in Western Australia VIEW REPORT Get in touch Rachel HornsbyHead of Advisory (Acting)t. +61 3 9660 2300e. information@ahuri.edu.au Email "Throughout the course of this project, AHURI has been professional, reliable and easy to work with. The team was quickly able to understand our brief and provide a robust evidence base that we could confidently draw on; even going beyond the project brief to include modelling that has become an integral part of the final report. The team showed high attention to detail in data collection and analysis, and were responsive and adaptable at every stage of the project, including with lived experience participants. Our final report on income eligibility limits has generated broad interest and we have received overwhelmingly positive feedback from the broader community, who found the research credible, accessible, and genuinely useful. AHURI's strong reputation with Government lends real credibility to the findings, which will undoubtedly help this important piece of work gain traction with key stakeholders." Kath Snell CEO Shelter WA Related resources Report The Eligibility Trap: Income eligibility limits, work disincentives and social housing in Western Australia This report explores how income eligibility and rent-setting policies interact to create work disincentives for social housing tenants in Western Australia. The report includes a range of policy options to better support residents to build economic security without fear of losing their home. view details Report Trajectories the interplay between housing and mental health pathways Mind Australia in collaboration with the Australian Housing and Urban Research Institute (AHURI) have conducted a national study, Trajectories: the interplay between mental health and housing pathways, to develop a clearer understanding of the housing and mental health pathways of people with lived experience of mental ill-health. view details Report Housing First: options and considerations for NSW The NSW Department of Communities and Justice commissioned this exploratory paper to support the development of a Housing First approach for New South Wales, as part of the consultation process for the NSW Government's Homelessness Strategy 2024–2034. view details Report Return on investment for social housing in the ACT ACT Shelter commissioned the Australian Housing and Urban Research Institute (AHURI) to investigate whether providing direct access to planned, sustainable, long-term housing options for the homeless population, and those at risk of homelessness, in the ACT is a more cost-effective strategy for the government than relying on crisis responses. view details
Report The Eligibility Trap: Income eligibility limits, work disincentives and social housing in Western Australia This report explores how income eligibility and rent-setting policies interact to create work disincentives for social housing tenants in Western Australia. The report includes a range of policy options to better support residents to build economic security without fear of losing their home. view details
Report Trajectories the interplay between housing and mental health pathways Mind Australia in collaboration with the Australian Housing and Urban Research Institute (AHURI) have conducted a national study, Trajectories: the interplay between mental health and housing pathways, to develop a clearer understanding of the housing and mental health pathways of people with lived experience of mental ill-health. view details
Report Housing First: options and considerations for NSW The NSW Department of Communities and Justice commissioned this exploratory paper to support the development of a Housing First approach for New South Wales, as part of the consultation process for the NSW Government's Homelessness Strategy 2024–2034. view details
Report Return on investment for social housing in the ACT ACT Shelter commissioned the Australian Housing and Urban Research Institute (AHURI) to investigate whether providing direct access to planned, sustainable, long-term housing options for the homeless population, and those at risk of homelessness, in the ACT is a more cost-effective strategy for the government than relying on crisis responses. view details
