A survey of homelessness support workers shows almost all of them turned away more people seeking help, and provided less support to the needy, in 2023.
Homelessness Australia said the results of its members' survey show demand for places to live is surging due to a housing shortage and cost of living pressures.
Members were asked whether the problem of turning away people had worsened in the past year and 93 per cent said yes.
The same result occurred when members were asked whether demand pressures were restricting the support they could provide.
The survey polled 252 workers in the sector. Most were case managers, service managers and team leaders.
"Homelessness providers are expected to work miracles. But the strain is simply unrelenting," said Kate Colvin, the chief executive of Homelessness Australia.
"Funding, which is already uncertain, is plateauing while demand surges. The status quo is just unsustainable."
Ms Colvin said support workers were forced to make extremely difficult choices that could involve cases such as a mother and child fleeing violence or a teenager escaping abuse.
If someone had a car to sleep in they often didn't get accommodation.
Ms Colvin said the federal government must end the uncertainty around $73 million in funding to cover the wages of the workforce.
"This funding expires in June 2024. The last thing anyone needs in a housing crisis is a cut to homelessness support," Ms Colvin said.
The funding is covered by the National Housing and Homelessness Agreement. The federal government is renegotiating the deal with state and territory peers.
The federal minister for housing and homelessness, Julie Collins, said the government was taking action to alleviate housing pressures with its counterparts.
In a statement, she said $2 billion was given to states and territories through the social housing accelerator payment. This will provide about 4000 homes.
She also cited the $10 billion Housing Australia Future Fund, passed by parliament this year, and efforts to produce the National Housing and Homelessness Plan. The latter aims to support those experiencing housing stress and homelessness.
"These represent the most significant housing reforms in a generation," Ms Collins said.
