The government’s federal budget will have “almost no impact on rents”, says Housing Minister Clare O’Neil, insisting “the pressure on rent will actually be downwards”.
She said Treasury modelling showed the impact of proposed changes in the budget would see rents increase by no more than $2 a week, and in the long-term, would drive rental prices down by increasing the number of rental properties on the market and reducing competition.
“We’re building more homes, and rental prices are set based on how many rental properties we have and how many people are in the market, but the thing that renters in this country want most of all, most of them at least, is to become first home buyers, and that’s the big intention of this budget,” O’Neil told Seven’s Sunrise.
Nationals senator Bridget McKenzie accused the government of failing to account for the impact of inflation – which is projected to reach 5 per cent by the end of next month, according to Treasurer Jim Chalmers – on driving up the price of rentals.
“They’re planning for inflation to go to 5 per cent, so if you are wanting to build a new house, if you are selling anything right across this economy, inflation is going to 5 per cent. That drives up the cost of everything, including rents,” she said.
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