There is much conjecture at the moment as to whether the Andrews’ Government recent tax hikes will flow on into rent hikes. Elinor Kasapidis, Tax Policy Manager at CPA Australia labeled the rises as “appalling” and said they threatened to make a bad situation worse. She advised the government to rethink its position.
“Many landlords will be unable to afford this additional cost. On top of wall-to-wall rate hikes for nearly a year, this additional cost will push some mum and dad landlords into the red. To foot this bill, they will be forced to increase rents at a time when there is a national housing affordability crisis,” she said.
While Tim Pallas has disingenuously denied rent rises will result, Ms. Kasapidis is right. Landlords must, inevitably, pass on costs. But urging a Labor government to reconsider tax rises seems to us akin to asking gravity to take a break. You’re unlikely to get a response.
So with the end of the financial year approaching lessors should be now preparing appropriately for the new tax regime.