Australia is currently facing a rental property crisis with a shortage of available properties for rent. The high demand for rental properties has led to skyrocketing rents, leaving many Australians struggling to find affordable housing. The government has been under pressure to address the issue, but solutions have been slow to materialize.
One solution that has been suggested is to provide more support to landlords. Landlords play a critical role in the rental market, providing homes for people who cannot afford to buy their own property. However, being a landlord can be a risky business, especially when governemnts are constantly talking about changing tax structures and tenancy rules. Landlords face a range of challenges, including difficult tenants, property damage, and vacancy periods. In addition, landlords are required to pay extra taxes on their properties, which can significantly reduce any benefit.
To encourage more people to become landlords and increase the supply of rental properties, the government needs to provide more support and certainty to landlords. One way they could do this is by reducing taxes, especially land tax. Land tax is one of the biggest costs for landlords, and reducing it would reduce the ongoing holding costs encouraging more people to invest in rental properties, providing more homes for renters.
In addition to reducing taxes, the government also needs to support people who are prepared to take the risk of providing rental properties. The current legal framework makes it difficult for landlords to evict difficult tenants, which can lead to significant financial losses. Landlords need to feel confident that they can manage their properties without fear of losing money or being sued.
The government also needs to address the issue of rental affordability. Many Australians cannot afford to rent a home, which is contributing to the shortage of available properties. To address this issue, the government needs to provide more support to low-income renters, such as rent subsidies or affordable housing initiatives.
The shortage of rental properties in Australia is a complex issue that requires a multifaceted approach. While the government needs to address rental affordability, they also need to support landlords by reducing taxes, especially land tax, and ensuring legislation can assist landlords to manage their properties with certainty. By working together, we can increase the supply of rental properties and ensure that all Australians have access to safe and affordable housing.
Doug Daniell CEO Futurus
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