Media release – Better Renting, 19 June 2023
ATO data shows just how good landlords have it
The latest taxation statistics from the ATO show that landlords should be grateful for how good they’ve got it, says tenant advocacy organisation Better Renting.
Data recently released by the ATO shows how many rental properties are owned by how many landlords, as well as the average profitability. The figures show that 51% of rentals are owned by a landlord owning two or more property interests. In addition, the number of landlords making a profit was at an all-time high in 2020-21: 53% of landlords made a net profit, totalling over $10 billion.
Better Renting Executive Director, Joel Dignam, says the data shows the reality of just how good landlords have it.
“If you are lucky enough to own a rental property, consider stopping to smell the roses. You own more property than most people ever will. ”
“But if you rent, it’s more likely than not that your landlord owns, on average, 2.6 investment properties – in addition to their own home. These people are unusually wealthy and the data show that, while renters were tightening their purse strings during Covid, landlords were making bigger profits than ever.
“We estimate that in 2020-21 taxpayers subsidised landlord losses to the tune of over $2 billion. It is unclear why our government continues to give tax handouts to wealthy investors, while refusing to contemplate action to help reduce the burden that runaway rent increases are placing on the roughly one in three Australians who rent their homes.”
“I think most of us struggle to understand just how well off landlords actually are. If you’re a home-owner struggling with mortgage repayments, you have much more in common with the renter next door than someone who owns their own home plus two others.”
Media release – Senator Tammy Tyrrell, Jacqui Lambie Network, 19 June 2023
TYRRELL DISAPPOINTED OVER HAFF DECISION
Statement from Senator Tammy Tyrrell, Jacqui Lambie Network Senator for Tasmania:
“I’m angry and disappointed at the decision of the Senate today to defer the vote on the Housing Australia Future Fund to October.
“Every day that we delay passing this legislation, the housing list in Tasmania continues to grow. More people find themselves in need of emergency housing.
“I negotiated to deliver 1200 homes over the next five years for Tasmania. Tasmanian Greens Senators Nick McKim and Peter Whish-Wilson have chosen to delay these homes. It’s on them to explain to Tasmanians why they don’t think we deserve these houses and deserve them now.”
Media release – Australian Greens, 19 June 2023
SENATE WON’T DEAL WITH HAFF UNTIL LABOR’S NATIONAL CABINET DEALS WITH SKYROCKETING RENTS, SAY GREENS
The Greens today have successfully deferred consideration of the HAFF bill until after National Cabinet determines its approach to rapidly rising rents later this year.
After months of sustained pressure from the Greens, Labor caved and met the Greens demand for immediate direct funding to tackle the crisis, with a one-off $2 billion for housing and guaranteeing $500 million a year from 2024/25. But this still falls significantly short of meeting the need, and will see housing waiting lists get longer, and there’s no reason Labor couldn’t spend the modest sum of $2.5 billion a year rebuilding public housing in Australia.
The pressure is now on Labor – which holds every National Cabinet seat on the mainland – to act on the rental crisis. Renters rights are on the National Cabinet and Housing Ministers’ meetings agenda, and further meetings are expected between August and October.
Capital city rents increased six times faster than wages in the last year. The RBA Governor expects rents will increase another 10% this year, and noted ‘some people are experiencing bigger increases than that’. On the weekend Labor incentivised the states to pass planning reform in exchange for the $2 billion housing spend, and they could use exactly the same model to incentivise a freeze and cap on rent increases.
Attributable to Greens Leader Adam Bandt:
“Unlimited rent increases should be illegal.
“The pressure is now on the Prime Minister and the Labor Premiers to act on a rent freeze and limit rent increases.
“This is a test for Labor. It’s wall-to-wall Labor across the mainland, so rent rises are their responsibility.
“For months we have been calling for two things: real money on housing now, not after the next election, and action to limit soaring rents. For months Labor has said this was impossible. Over the weekend, Labor found an extra $2b to start going out the door in two weeks’ time, but they still won’t act on rents.
“We shouldn’t have to fight this hard to get Labor to limit rent increases during this rental and housing crisis.
“In parts of the country, rents were frozen during the pandemic and the situation is even worse now.
“Labor could negotiate a two-year rent freeze and limits on rent increases after that in the same way they just negotiated the states passing planning reform: by putting money on the table at National Cabinet.
“If Labor acts on soaring rents at National Cabinet, their bill can pass.”
Attributable to Max Chandler Mather, Greens housing and homelessness spokesperson:
“Pressure works. To everyone who told us to pass the HAFF six months ago, I say look at the events of the weekend. When we hold the line we get outcomes, and we need to see outcomes for renters.
“The Prime Minister must show leadership at National Cabinet and put money on the table to coordinate national limits on rent increases, otherwise Labor will abandon millions of renters to unlimited rent increases and poverty.
“The reason the Greens are fighting so hard to limit rent increases is because unless we stop rents skyrocketing the queues for public housing will blow out and our chances of tackling this crisis will drop to zero.
“First Labor said it was impossible to spend directly on housing, and then they did it. Now they say it’s impossible to coordinate national limits on rent increases, but it’s not.
“If Labor can spend $2 billion in one year then they can spend that every year and they can certainly coordinate proper national limits on rent increases.
“There are millions of renters staring down the barrel of eviction or financial stress if they cop one more massive rent increase, so just like Labor coordinated energy price caps they now must do the same and cap rents.
“The only reason Labor caved and agreed to spend $2 billion right now on housing is because the Greens stood up and fought, and we aren’t going to stop fighting for proper limits on rent increases and serious money every year for public housing.
“When interest rates come down, rents will stay high. Rents never go backwards. If Labor doesn’t act now, they’re sleepwalking into a crisis that will see housing get less affordable, more people evicted and hundreds of thousands of people joining the housing waiting list.”
Media release- Better Renting, 20 June 2023
“Freeze rents, not renters” – comments re: deferral of HAFF legislation
Yesterday the Senate voted to defer a vote on Labor’s Housing Australia Future Fund until October, with the Greens calling on Labor to do more to limit rent increases.
A freeze on rents will help stop renters from freezing this winter, says Joel Dignam, Executive Director of tenant advocacy organisation Better Renting.
“We are hearing from too many renters who say unlimited rent increases plus higher energy costs are pushing them to the edge. If these people can afford to stay in their homes – and that’s a big if – it often means cutting back on other essentials, like freezing through the upcoming winter months. Instead of freezing renters, let’s freeze rents. This would create some breathing space for struggling renters while governments work together on a systemic solution.”
“Our analysis of ATO taxation statistics, published this week, shows that over one in two rental properties are held by a landlord owning an average of 2.6 investment properties. These are the same wealthy investors being subsidised by billions in tax handouts, while renters are choosing between feeding their children and paying the gas bill. Is it really too much to suggest that the government should throw a bone to renters?”
“Labor’s $2 billion commitment to social housing is very welcome, after decades of neglect. But this money will be much more impactful if governments also act to stop private landlords from making tenants homeless through unaffordable rent increases.”
