Renters have forked out over $3 billion dollars as a result of the government’s failure to implement a rent freeze, and will lose another $4.9 billion unless Labor acts soon, according to analysis conducted by the Parliamentary Library.
The research found that a rent freeze starting in July 2022 would have saved renters across the country over $3 billion dollars in the last 12 months alone. With rents predicted by the Reserve Bank of Australia to rise another 10% over the next twelve months, the analysis also shows that renters will be in for another $4.9 billion in increases over the next year. Totalling an estimated $8.06 billion in increases over the next two years.
Based on the RBA’s projected future rent increases, a rent freeze implemented this year could save the average household $2261 over the next year alone. While the Parliamentary Library found a rent freeze implemented last year would have saved the average household $1427. This would see an average cost saving of $3688 per average renter household over the two years.
With National Cabinet currently considering national renters rights and potential caps on rents, the Greens say that the federal government needs to step up, take leadership and incentivise the states and territories to freeze rental increases for two years with ongoing caps after that.
This comes as 80 housing, legal and welfare organisations called on the Federal Government to coordinate national rent caps and stronger renters rights.
Recent analysis by the Parliamentary Library found that property investors would pocket $39 billion in tax concessions in the coming financial year from the Federal Government
Lines attributable to Max Chandler-Mather, Greens spokesperson for housing and homelessness
If the Federal Government acts right now and coordinates a national freeze on rent increases, they could save the average renter thousands of dollars in just a year, which could be life changing.
“These aren’t just numbers, a two year saving of $3688 per household is food on the table, a desperately needed trip to the dentist or it’s the electricity bills for two years.
“Property investors will get $39 billion this year alone in tax concessions, so it seems only fair that renters get some relief when they’ve just copped the largest quarterly rent increases in 35 years.
“The Prime Minister has an historic opportunity to save the one third of this country who rents $4.9 billion over the next twelve months by putting $1 billion on the National Cabinet table to coordinate a national freeze on rent increases and ongoing caps
Rents are now one of the key drivers of inflation, so freezing rents for two years could have not only put close to $4000 in the pockets of renters, but help control inflation at the same time. At a time when people are counting every dollar, this would be a lifesaving cost of living measure.
“If decisive action was taken by the federal government when we first saw cost of living increases being unfairly passed onto renters then renters would have saved on average $3688 over the two year period and inflation would be lower.