Rent controls, National Renters Protection Authority and negative gearing changes.
In the lead up to the 2024 Qld State election, Ch 9 News is reporting that the Qld Government is considering ACT style inflation-linked rent controls.
Sounds like a pre-election thought bubble. Any move towards greater rent controls in Qld runs contrary to the position of the Government's own Department of Housing, Local Government, Planning and Public Works
In May 2024, the Department stated that it believed forms of rent control are generally ineffective.
The ALP risks losing several seats to The Greens at the October election so it is not surprising that they may make election promises that seek to limit voter bleed to The Greens.
Meanwhile, The Greens want to implement a National Renters Protection Authority.
Costing $200m per annum and staffed by 1,000 public servants, the NRPA would investigate rental breaches as well as offering advocacy, advice and education to renters around Australia.
The NRPA would deal with tenancy disputes and enforce the minimum standards the Greens want, including rent freezes, ventilation, heating, cool and insulation standards. The NRPA is part of a wider $2.5b Greens Plan to convince the States to enact rent freezes.
How the NRPA would work in practice is unclear. There seems significant overlap with the role of State Government Departments.
Victoria, as an example, is planning to implement far reaching housing standards to include heating, cooling and insulation.
Qld's latest round of rental changes come into force on 30 September 2024. These include new standards for re-letting costs, methods for paying rent, timelines for utility bill payments, and supporting evidence for bond claims.
NSW is also moving towards tightening the rules for no-default evictions.
And just to top it off, media reports indicate that the Federal Government has asked Treasury to look at the implications of changing negative gearing rules.
Lots of political obfuscation peppered with some denials by Government members.
Similar to the Government's superannuation changes which targeted the higher end of superannuation balances, it wouldn't be surprising to see the Government target negative gearing changes, for example, at the 5% of landlords who own 6 plus properties.
Any uncertainty over rent controls and negative gearing just reinforces nervousness amongst investors at a time when Australia needs greater investment in rental housing.
Report No. 7, 57th Parliament Housing, Big Build and Manufacturing Committee, May 2024
National Renters Protection Authority Plan
September 2024
© PELEN 2024
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