Social housing income eligibility limits in Western Australia

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.