The Early Years of Corporate Leases and Employee Allowances
Over the past 16 years supporting workforce relocations across Australia, I have seen significant changes in how relocation and long-term housing entitlements are funded, structured and managed. Few aspects of global mobility have evolved more noticeably than the way organisations approach accommodation for relocating employees.
When I first started delivering destination services, traditional expatriate packages were far more common. Many relocating employees arrived with generous housing allowances, and it was typical for employers to secure leases on their behalf.
These packages often included allowances for rent, household bills, cleaning and property maintenance, along with support for furnishings, vehicles and, in many cases, school and childcare fees.
I remember being surprised at how housing allowances were often determined — sometimes by seniority within the organisation, sometimes by family size, and sometimes by a combination of both. As someone early in my career, I was struck by the lifestyle these packages enabled for relocating employees and their families.
In some cases, employees relocating to Perth were even provided with hardship or location allowances, reflecting how the city was historically considered relatively isolated within global mobility programs.
Some organisations preferred the lease to be held in the employee’s name to minimise risk or administrative burden for the company. Even then, housing costs were typically supported through allowances or broader remuneration packages, often with ongoing maintenance support.
Many destination service providers, also supported HR teams with the ongoing management of corporate leases — including rental pricing reviews, coordinating rent payments, tracking household bills and arranging property maintenance to help minimise costs and administrative burden throughout the assignment and at departure.
A Changing Workforce Housing Model
Today, the landscape looks quite different.
Across many sectors in Australia — particularly healthcare, construction, infrastructure and resources — organisations are increasingly engaging overseas skilled workers on local hire arrangements. Generous expatriate packages and housing allowances that were once common have largely disappeared.
At the same time, Australia is experiencing one of the tightest rental markets in decades, with many cities and regional areas recording vacancy rates below one percent.
Employers increasingly recognise that securing accommodation early allows employees to focus on their roles rather than navigating the stress of finding housing in an extremely competitive market.
As a result, relocation services are now supporting not only executives and managers, but also tradespeople and essential workers relocating for projects or new roles.
The Emergence of Shared Workforce Housing
With rental prices at record highs and vacancy rates extremely low, shared accommodation has become an increasingly practical solution for workers relocating for projects or short- to medium-term assignments.
These arrangements are particularly common for single employees or those who’s dependents remain in their home country for the assignment or for the initial 6-12 months while they establish themselves in a new role and location.
However, property managers are often reluctant to place multiple unrelated occupants — particularly those without Australian rental history — on a single residential lease.
As a result, organisations are increasingly required to secure leases in the company’s name to obtain suitable housing for relocating employees. In many ways, workforce accommodation is returning to corporate leasing models.
While this approach can help address housing shortages, it also introduces new operational responsibilities for employers.
Operational and Governance Challenges
Responsibility for managing staff accommodation often falls to HR teams, site administrators or operational managers. These teams may suddenly find themselves coordinating maintenance, managing rent payments and responding to household concerns that sit outside their usual roles.
Separating workplace relationships from housing matters can also be difficult. Managers may find themselves praising an employee’s professional performance while also needing to address concerns about shared living arrangements.
Ensuring accommodation costs remain fair and aligned with market conditions is another emerging issue. During independent housing reviews we have undertaken, situations occasionally arise where properties have unintentionally been priced above market value.
This can occur when furnished homes transition from short-term accommodation into longer-term leases without pricing structures being adjusted, or when per-person pricing models remain unchanged as occupancy increases.
While rarely intentional, these situations highlight the importance of transparency — particularly where accommodation costs are deducted from employees’ wages.
HR leaders are increasingly recognising that providing appropriate, affordable and well-managed housing supports important outcomes such as employee wellbeing, retention and productivity. At the same time, regulators — including Border Force — are paying closer attention to employer-provided accommodation and potential exploitation risks.
Looking Ahead
As Australia’s rental market remains under pressure, shared workforce housing will continue to play an important role in employee relocation programs.
Organisations that approach workforce housing thoughtfully — balancing affordability, clear governance, strong systems and employee wellbeing — are likely to see benefits in retention, productivity and workforce stability.
About the Author
Sue Pember is an award-winning entrepreneur, coach, and the founder and Managing Director of Aussie OS – one of Australia’s most trusted relocation and global mobility companies.
Sue is also the WA Community Lead for TEMi.
Sue is committed to building a vibrant, inclusive network of professionals across HR, mobility, recruitment, and operations – with a focus on collaboration, knowledge-sharing, and real-world impact. Find out more about Sue and connect.
