Federal taxpayers are forking out a whopping $4.2 billion a year to help people pay their rent so they don’t end up on the street.

That’s projected to rise by $200 million next year to $4.4 billion – or more than $12 million a day.

As pressure mounts on the Government to find a solution to housing affordability, statistics reveal the amount paid in rental assistance is increasing dramatically. The Social Services Department’s latest annual report reveals that the cost is projected to get worse, with 1,343,431 individuals and families receiving rent assistance.

Federal Treasurer Scott Morrison will meet state treasurers next month to discuss almost $85 billion in annual state taxes and charges, including stamp duty, which makes housing affordability harder. A spokesman for Social Services Minister Christian Porter said the country needed better supply.

“One of the keys to addressing rental affordability is to increase supply so it can better meet demand,” he said.

“While supply rests largely with states and territories, the (Federal) Government has set up a Housing Supply Working Group, highlighting the importance of this issue.”