Inquiry into Victoria’s rental and housing affordability crisis

As a member of the Legal & Social Issues Committe, I've been participating in the inquiry into Victoria's rental system for the past few months.

On Thursday 30 November, I tabled the final report in the Legislative Countil. 

We heard from renters, landlords and corporations on solutions to the current rental and housing crisis. In response to the release of the Rental and Housing report I spoke in parliament about how the crises are two-pronged.

On the one hand the housing crisis is about cost. With rents increasing substantially in the last twelve months, many are being priced out. On average rents increased by 14.1% in the twelve months to June 2024. Further data from PropTrack suggests that the forecast is worsening in the capital cities, where it will be cheaper to buy a house then to rent.

Meanwhile, there is a crisis of quality in the rental sector. This is largely due to people using housing as a source of individual wealth generation, buying houses as an investment strategy, and not investing further to improve upon the value of the house. This is partly fuelled by Australia’s abnormal generous capital gains tax and negative gearing tax concessions.

In 2021 significant changes to rental laws were introduced. Reforms including a ban on rental bidding, new minimum standards, no eviction without a reason, allowable modifications by renters and new rules around urgent repairs were implemented.  

Moreover, the government is firmly committed to the Big Housing Build which will boost the required supply needed to ease pressure on the market.

The Allan Labor Government is acting right now to address the rental crisis. I believe that the steps we are taking are sensible and grounded in evidence. Reacting to popular opinion, sensationalist media coverage and over-simplifying complex issues by proposing superficial solutions for political point scoring will not build the conditions for long-term change in the rental sector.