Fair go for renters in tax reform

Why this matters

The Australian Government gives landlords billions in tax breaks every year through policies like negative gearing and the capital gains tax discount.

But renters aren’t getting much in return.

• No guarantee of affordable rent.
• No guarantee of secure leases.
• No guarantee homes will even be properly maintained.

For millions of renters, housing feels unstable.

• Rent increases.
• Delayed repairs.
• Being forced to move again and again.

That’s because these settings encourage investors to borrow more money to buy already existing homes and then use your rent to pay off the bank and hope for higher prices instead of putting money into the repairs. Nearly half of rent paid in Australia is being used to pay for massive loans - a gamble that banks on prices always going up and then causes them to keep rising - while only 6% of rents paid, or around $1300 are being spent on repairs and maintenance according to landlord's own tax returns.

That’s not a housing system designed to let people make homes. It’s a system designed for speculation.

Ending tax breaks for landlords would be a major step toward rebalancing the housing system so it works better for renters.

The Tenants’ Union provided a submission to the Federal Government Select Committee on the operation of capital gains tax discount. The Select Committee is due to release its report on Tuesday 16th March. You can read our submission here.