Renters’ rights to be boosted across nation

Renters’ rights will be bolstered, housing investment funding increased and tax concessions granted under reforms agreed to by the Prime Minister and state and territory leaders.

Renters’ rights will be bolstered across the nation, housing investment funding increased and tax concessions to spur build-to-rent projects introduced under reforms agreed to by the Prime Minister and state and territory leaders.

National cabinet, held in Brisbane on Friday, agreed to “strengthen renters’ rights across the country”, with housing ministers to report back with a proposal later this year.

But the federal government was quick to point out rent freezes remained impractical, and the reforms were about giving people “certainty in their tenancy”.

Queensland last week rammed through laws to ensure rents can be increased only once a year.

Planning ministers have also been deployed to draft reforms — with the help of the Australian Local Government Association — to increase housing supply and affordability

Prime Minister Anthony Albanese also confirmed $2bn in additional funding for the federal government’s housing finance arm to support longer term and lower cost loans for community housing providers to increase supply.

Premier of Queensland Annastacia Palaszczuk with Prime Minister of Australia Anthony Albanese at the national cabinet held in Brisbane on Friday. Picture: NCA NewsWire / John Gass

Build to rent investors, mainly large overseas trusts, are set to benefit from a reduction in the withholding tax rate from funds to foreign residents on income on newly constructed properties from mid-July 2024.

But dropping the withholding tax rate from 30 per cent to 15 per cent is still “subject to further consultation” on eligibility criteria.

Levelling the withholding tax rate in line with investment in other property asset classes could create an extra 150,000 Australian homes over the next decade according to a report commissioned by the Property Council.

Property Council chief executive Mike Zorbas said the move was a “strong step” toward addressing the nation’s chronic housing shortage.

“More supply means downward pressure on the cost of renting and buying homes and will offer more housing choices and affordable options at a time when we desperately need them,” he said.

Federal housing minister Julie Collins said the agreement at national cabinet was a “significant step forward” in ensuring renters had certainty in their tenancy.