2018-07-30
ACT Greens MLA Caroline Le Couteur is introducing a motion to the Legislative Assembly this week to improve rental affordability in the ACT.
The Greens are proposing landlords who rent their homes at affordable rates (at most, 75% of market rates) should be eligible for land tax discounts.
“The ACT Government is plainly failing to meet the need for affordable rentals in Canberra. Our proposal encourages socially responsible landlords in the ACT to step up and play a part in addressing this ongoing problem.
“Renting out properties below market rates is a great opportunity for people who are prepared to go part of the way to help their fellow Canberrans.”
Community housing providers already work with landlords who are willing to offer their investment properties as affordable rentals. The Migrant and Refugee Settlement Services (MARSS) is doing this work in the ACT, Homeground Real Estate is doing this in Melbourne, and Bridge Housing is connecting landlords with renters in need of affordable housing in Sydney.
“Offering a land tax discount to these landlords would be an incentive and a reward for doing something concrete, and quite significant, to address the ACT’s housing affordability problem,” Ms Le Couteur said.
“Leveraging existing private investment in property is the cheapest way to boost housing affordability in the Territory. The need is huge, and it’s more than the public purse is currently able to address.
“Canberra now has the equal highest rent for houses in Australia, and the second highest rent for units according to recent data from Domain.
“Anglicare’s 2018 rental affordability snapshot showed no houses at all – zero homes – are affordable for people relying on a Centrelink payment like Newstart, Youth Allowance or the Disability Support Pension. A measly 2.4% of properties are affordable for families on two minimum wage incomes.
“Even after receiving Commonwealth Rent Assistance, the ACT has the highest proportion of people in the private rental market who are still in rental stress according to the 2018 Report on Government Services.
“This is the reality of life for many Canberrans, but landlords aren’t necessarily the bad guys. With a little encouragement, the ACT’s landlords could be a significant piece of the puzzle as we work toward ensuring all Canberrans have a place to call home.”