Crisis Loan For Rent Arrears: Are You Eligible?

What can possibly feel worse than working hard all month, and then not being able to pay your rent? No one asks for this situation – it’s just something that happens. Rentals have increased, but your salary hasn’t, and now you’re in a bind you’d rather not talk about. 

Falling behind on rental payments is stressful, but it’s not uncommon. Housing costs, driven by mortgage repayments and rent, have emerged as the top financial concern for 2025, with 25% of Australians identifying it as their biggest worry. With rent piling up for more households, it’s essential to seek sound financial advice and, if necessary, explore available rent assistance options.

This guide will walk you through the support options available, so you can start making informed decisions and get back on top of your rent.

Where can you go for advice

Regardless of how far you are in rent arrears or how much pressure your landlord is placing on you, you need to know how you can proceed immediately. Here in Australia, there are many great organisations that provide advisory services for residents going through financial hardship. 

• National Debt Helpline – Understand your rights, discuss your debt problems, or complex financial situations, and seek financial counselling. They are best for general rent arrears advice.
• Tenants Union in your state – Each state/territory has its own tenants advisory service, e.g., New South Wales, Victoria, Queensland, and Western Australia. They can help you talk to your landlord about rent arrears and give you advice on your rights as a renter. For example, your landlord may not evict you as soon as you go into arrears. You have 14 days to correct the situation. 
• Legal Aid in your state – If you’re in legal trouble with your landlord due to rent arrears, contact your local Legal Aid office. They will help you work through the legal process.
• Debt Busters – A private organisation focused on helping Australians manage debt, including rent arrears. They offer debt settlement services, can help you negotiate an informal payment arrangement, or assist you with a debt agreement if you’re in a real financial bind. 

It should be comforting that despite finding yourself in an unpleasant situation, the Australian government, local agencies, and private organisations have set up support systems for renters. The majority of landlords are also sympathetic when good long-term tenants run into financial stress, so don’t be afraid to speak up. 

What is a crisis loan for rent arrears?

There are some situations that make it hard to manage and can cause severe financial hardship. Natural disasters, family violence, mental distress, or prison are examples of extreme circumstances that may require emergency financial assistance. 

The government of Australia provides a once-off non-taxable payment if you are eligible for this payment. Let’s look at the eligibility criteria for each incident, so that you can get back on your feet. 

Family or domestic violence incident

You’ve had to temporarily leave your home due to domestic violence and have fallen behind on rental payments, or the person responsible for the rental has left the home, or you’ve been legally prevented from returning home. You must also be receiving an income support payment to qualify. 

Natural disaster or community violence

With weather becoming more unpredictable, it’s possible that you’ve had to leave your home due to fire, flood, or another natural disaster. In this case, emergency relief is possible through a crisis payment. The same is true for instances of community violence. To qualify, you must be receiving an income support payment. 

Release from a mental health facility or prison

If you were recently released from a mental health facility or prison and were charged with committing an offence, then you’re eligible for the once-off crisis payment, as long as you also get an income support payment. 

The purpose of a crisis loan is:

• To help you cover outstanding rental arrears due to the crisis you went through. 
• Avoid eviction while you are temporarily away from your property.
• Secure private rental assistance, Centrelink rent assistance, and tenancy assistance in the future. 
• Access a financial counsellor or ongoing financial assistance. 

What other options are available?

If a crisis loan isn’t exactly what you were looking for, or perhaps you don’t meet the eligibility criteria, that’s ok. There are plenty of other options for financial assistance you can pursue. Let’s go through them. 

1. Centrelink rental arrears assistance

Centrelink is responsible for distributing a large number of social payments to residents across Australia. Considering that it’s the primary provider of government support payments, they will help those struggling to pay rent. They do this with an advance payment. 

To qualify for an advance payment, you must already be getting a Centrelink support payment such as the family tax benefit, work, education, age pension, or health and disability. The advance payment will be a lump-sum loan that you need to pay back, by getting less income over the next 13 payments. 

Specific residents in Australia will receive a rent assistance payment if they already receive payments from Centrelink. This will depend on what kind of payment you get, as well as the type of accommodation you currently reside in. Check whether you qualify for rent assistance Services Australia. 

2. Informal Payment Arrangement (IPA)

Slightly different from a debt settlement, an IPA is an informal payment agreement where you make one affordable payment to Debt Busters and they distribute the funds amongst your creditors.

Your landlord may not agree to an IPA, and is not legally required to do so, but if you have other creditors, this can be a very good way of dealing with your financial situation. Speak to a Debt Busters consultant to discuss the best option for your situation. 

3. State assistance programs

Each state has unique rent assistance programs that are geared towards helping people deal with rent arrears, such as:

• New South Wales program
• Tenants Victoria
• Queensland renters’ relief package

These assistance programs are geared towards helping renters with outstanding rent, but also extend further to bond loans, rental grants, and rental subsidies. 

4. Not-for-profit organisations

With a number of Australian families experiencing rental stress (a situation where a household is spending a disproportionate amount of its income on rent, leaving insufficient funds for other essentials like food, healthcare, transport, and education), NPOs are jumping on board to help. Here are a few of the organisations serving the community:

Anglicare

When you’re in rental arrears, you need to tackle the problem quickly, and Anglicare can help you do that. Make an agreement with your landlord to catch up on payments, and for extra support, contact an Anglicare office for help. 

Salvation Army

The Salvation Army offers help if debt is building up, you’re having trouble paying your rent, buying food for your family or simply feeling overwhelmed by your financial situation — help is available. Their financial support services are here for you. 

Money troubles (such as rent arrears) can make you feel embarrassed, lonely, and unsure of your future. The Salvation Army has worked with millions of people worldwide with similar issues and knows what to do. 

Get out of rental arrears permanently

We understand that being in arrears with your rent is a difficult and stressful situation. Anyone in your shoes would feel the same. With so many assistance programs available from the government, not-for-profits, and private organisations, there is no reason for you to continue carrying this burden alone. 

Here’s a quick summary of where you can go to get help. 

We truly hope this discussion has been helpful and that you will be up-to-date with your rental payments soon. Debt Busters has been helping people get and stay out of debt, and we would like to help you too. Contact us today, and let’s discuss how to get you debt-free.