New analysis of CPI data by the Parliamentary Library has shown that if a rent freeze were implemented when the Greens first called for one in 2022, renters across the country would have saved $6.7 billion, or $3067 on average per household. For clarity, $6.7 billion represents the value of rental increases, not total rent paid.

With rents predicted by the Governor of the Reserve Bank of Australia to increase another 10% over the next twelve months - the analysis shows that renters are set to cop another $5.3 billion in increases, unless a freeze is implemented imminently.

Based on the RBA predictions, if Labor were to implement a freeze on rental increases in the upcoming budget, Australia’s 7 million renters would save $2,424 per household over the next 12 months, or $5.3 billion in total.

Yesterday the RBA identified rent increases as a key driver of inflation, while in the latest ABS CPI figures, rental inflation surged to 7.8%, well ahead of a headline inflation figure of 3.6%.

The Greens have proposed that the Federal Labor Government offer the states and territories a share of $2.5 billion every year in exchange for introducing a 2 year freeze on rent increases, followed by an ongoing cap of 2% every 2 years after that.

Lines attributable to Max Chandler-Mather, Greens Housing and Homelessness Spokesperson

“Renters have already been smashed, but are now facing the worst year of rent increases in living memory unless Labor takes action to freeze and cap rent increases.

“Labor has already repeatedly kicked renters in the teeth by refusing to do anything to cap rents, while dishing out billions of dollars in tax handouts to property investors, so this is their chance to finally stop treating renters like second class citizens.

“A $2,424 saving might not mean much to property investors like the Prime Minister, but for many renters it means food on the table for their kids, a desperately needed trip to the dentist or a year's worth of electricity bills.

“What these numbers show is a rent freeze will work for renters to the tune of billions of dollars in collective savings.

“With the RBA identifying rents as a key driver of inflation, a rent freeze wouldn't just help renters, but help every Australian with a mortgage by driving down inflation and preventing further interest rate hikes.

“For renters, one more rent increase this year could mean eviction into homelessness, for property investors who already pocketed $39 billion in tax handouts from the government, another $5 billion in rent increases is a drop in the ocean.

“Ultimately Labor has to make a choice, the 7 million renters facing financial misery as a result of unlimited rent increases, or property investors who already pocket billions in tax handouts from this Labor government.”